Starting Up Your Own Business - Top 5 Business Myths And Misconceptions Of First Time Entrepreneurs

Please Click Here For Homepage

Starting up your own business and excited about the whole idea? Being your own boss is very exciting, and getting involved in a new project can get a person all worked up and hyper. Before you jump into the water, read about these common myths new entrepreneurs believe to be true.

Starting up your own business can be fulfilling and life altering. For some people, the success or failure of their business venture does not matter as much as the journey itself; but there are others who will do whatever it takes to succeed.

Whether you take your business seriously or lightly, investing your money, time, effort and energy on something that will prove to be a mistake in the long run, can be devastating and depressing.

Here are the Top 5 Myths And Misconceptions About Starting Up Your Own Business, in reverse order:

1. “I love coffee, so I’ll put up a Café”

We hear people complain about failed business and even bankruptcy because they started a business based on what they like doing. There are people who put up bars because they like to drink and hang out, women who put up boutiques because they have good fashion sense and love shopping.

It’s one thing to follow your dream, and another if you make a bad investment by creating a business out of a hobby. In starting up your own business, your passion won’t do you any good if you know nothing about important business principles.

2. “I have enough capital, my store looks great, I’ll open it up and wait for the cash to pile up, my investment will double in no time”

Even if you have sufficient capital and tools, without proper marketing and strategic planning, you can’t expect customers to just line up and hand over their cash to you. There are actually two myths in this example, one is thinking that a business will flourish without proper marketing, and the other is thinking that your investment will double in a short period, even if you don’t advertise.

3. “I should be the cheapest, to reel all the business in and succeed”

This kind of thinking is dangerous. First, it’s not true. Being the cheapest vendor is not the key to getting customers. In the long run, you’ll be losing a lot of money. Eventually, you may become incapable of sustaining your overheads and provide quality products and services.

Second. Healthy competition has dynamics that do not include this myth. Being the cheapest is a desperate and poor business decision. Starting up your own business with this approach is a sure way to waste money and time.

Third, by reducing your prices and going below standard, some of your competitors might follow your footsteps if your action impacts their sales; this will kill an entire industry. Once you go cheap, it will be very hard for you and the others to bounce back and raise your prices.

4. “I do a mean spaghetti, and my cooking is fabulous, I’ll put up my own restaurant”

This myth is common to all cultures and people from all walks of life. Being good or skilled in something, like, cooking, does not mean you can effectively manage your business. A lot of factors are involved, and talent alone does not guarantee you to make the cut. A business expert who can’t cook will stand a better chance of having a successful restaurant, compared to a great cook who knows very little about business and management.

5. “I’m ready and I have enough cash and capital funding, so I will hire my brother because he can be trusted, and partner up with my best pal because we got along really well”

This is a major mistake disguising as a business best practice. If you are starting up your own business, and want somebody who can handle the job and be trusted, look somewhere else, outside your family and friends’ circle.

The disadvantages of working with a family member or a friend, outweigh the advantages. You need somebody competent enough to do the job. Your family and friends may disrespect you, and be insubordinate.

Unless they have excellent skills and are highly competent, hiring your friends and relatives is a big NO NO for any upcoming business. Often good friends turn against each, when they start working together because they don’t share the same views.

Starting up your own business with your head on the right track, will give you a good chance to grow and succeed. Discard these myths. Remember to make every business day a learning experience.