Starting a business from the ground up is difficult. It requires years of planning, investment and the belief that anything is possible.
As entrepreneurs learn through the process, however, building a profitable enterprise is a multi-layered endeavor, full of surprises and misconceptions that are quickly learned.
These setbacks are avoidable by understanding the natural process of building a business from scratch. Take a look at these common myths about owning a business and see how they can provide guidance as you prepare to take flight on your dreams of owning a business.
Everything is About Risk
Yes, some risk is necessary for success. The notion, however, that entrepreneurs constantly jump into high-risk predicaments is simply not the case.
As business people develop their ideas and strategies to support them, risks become more calculated and more rewarding.
You Need Venture Capital Money
Not entirely true. Most of the capital generated to start a business is sourced from savings, loans, credit, friends and family.
Future business people must understand that putting up their own money is part of the risk-taking component of launching a new venture.
Funding resources, including venture capitalists, are out there, but a business’s success is not wholly reliant on the amount of money it has at the time of launch. The other elements of success include proper planning, advice and business strategy.
You Can Handle Legal on Your Own
Business owners are mistaken to think that the small size of their business is justification for DIY legal work.
Further troubling is that some small business owners may think it’s appropriate to function as a business without legal protections of signed contracts. Legal entities do keep an eye on business activity, regardless of the size. It’s also important for small businesses to keep up with legal documents and follow regulations fully to avoid any fines or penalties.
A full-time attorney likely isn’t the answer, but prepared legal templates reviewed by legal professionals could be what you need.
Building a business is a lot of detail-oriented work. Some business owners may find that aspects of the job, such as running HR or payroll, are holding them back. The good news is that there are plenty of resources for new businesses to tap into for solutions that will support their long-term objectives and success.
If you have any questions about such resources, contact us today!