Starting and operating a business is hard work. Unfortunately, there are also many misconceptions about what it takes to succeed as a small business owner. These are frequently fueled by individuals who have never owned or operated a successful business, the internet, and even wild fables that lead to the development of business myths. There are a plethora of myths about business that can lead aspiring entrepreneurs astray. Here are some of the leading myths about doing business, as well as some practical tips for steering clear of these falsehoods.
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If we are good friends, we can be good business partners.
Just because you get along well with someone does not mean that you will be successful business partners. A common business myth is that friends and family members make ideal candidates for business partners, investors, board members, employees, etc. The truth is that you need to make a clear delineation between your personal life and your business affairs. While some family members or friends make excellent business partners, this is generally the exception and not the rule.
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If I hire more people, I can get projects done faster.
Common myths about doing business might lead you to believe that you need to hire lots of employees in order to start and run your business. Of all the business myths, this one can be quite detrimental. The honest truth is that the more individuals you involve in your business, the more complicated things become. Employees require human resource management for facets like scheduling, time sheets, payroll, and disputes. It is sometimes more difficult to get things accomplished when human resources issues begin taking away a business owner’s attention from the core value.
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If you build it, they will come.
One of the most prevalent business myths is that if you start an organization, the customers will be readily available and willing to spend money. The truth of the matter is that people aren’t just readily available to walk into your business and start spending money. Building a customer base and community presence takes a combination of time and energy.
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The more customers, the merrier.
Another popular myth about doing business is that the more customers you can get, the better you business will be. The truth is that your business needs to focus on meeting customers’ needs and offering high-quality service. The number of customers you will be able to serve effectively will vary.
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If I really want to launch a great small business idea, venture capital is the way to go.
Of all the myths about doing business, this is one of the wildest. Venture capital was made popular by the dot com boom. The truth is that venture capital is really only a viable option for certain industries, especially those related to science, medicine and/or technology. Don’t waste a lot of time and money chasing venture capital dreams unless you are in an industry that has large barriers of entry – and need more than $4 million to initiate your idea.
As you can see, myths about business are prevalent, and we have just scratched the surface with these five. The underlying rule of business is practicality and profitability – and most of the myths veer away from this rule.
