Entrepreneurship is crowded with business myths and stereotypes that are not necessarily true. Small business owners or entrepreneurs hoping to start a business find themselves believing in most of this well-established business norms. Business and entrepreneurship are constantly changing. Below is a list of some of the myths.
1) The owner of the small business endeavor must do all the work. Ranging from financing, marketing, and content development. One can always delegate or outsource some functions. Financing doesn’t always have to be the owners’ equity. Small business Investors do exist.
2) All you need to do is start up a business and produce the best product or service and the customers will flow. Success is about marketing, product uniqueness, and timeliness. Business makes products prevail not the other way round.
3) The higher the Sales the more you are likely to succeed. Successful small business ultimately focuses on cash flow on the long run. There is no need to make high sales and lack cash at the end of the month.
4) Customers love cheap services and products. Cheap is costly in the long run. Most small business that set their prices way too low end up losing customers due to the poor quality of products and services offered. Know your customer first, listen and see things from their point of view. Then continue to produce, tailoring to their taste.
5) Social media and spamming people is the best online platform. This can end up to be a waste of resources. You should research on where conversations of your product are happening first before bombarding people with posts.
6) Renting out ofice space is crucial. Small business owners think that office space makes you appear more legit and focused. However working from home or co-renting out office space is a wise way to save and channel that money into your business.
7) Profitability is guaranteed after a few months in small business it may take longer than expected to break even and make some profit. Hence have a backup plan and be prepared for any unforeseen happenings.
8) All Entrepreneurs are risk takers. This myth has been used to scare people off and make entrepreneurship appear to be exclusive only practiced the few intelligent. Entrepreneurs avoid risks at all cost.
9) Small business owners have extra time to spare. The truth is that owning a business means taking on night shifts, sacrificing a lot to ensure its success. Being the first one in and the last one out to ensure you are updated on all the happenings and small details that may appear irrelevant.
10) All expenses are business expenses hence can be written off and deducted for tax purposes. Make sure that the business expenses match to the operations carried out by your business.