13 Misconceptions About Business Startups You Need to Know
You might have thought about creating your startup, but you're having some doubts about going about it.
Don't worry. All entrepreneurs have experienced what you're going through.
But if you're still having doubts, I have listed thirteen misconceptions on business startups. To learn more about this, keep on reading!
1.Creating a startup allows you freedom.
Before you quit your day job because you think you'll have more time as an entrepreneur than when you were working as an employee. The reality is that startup owners, on average, still work 40 hrs a week and sometimes even more.
Some company owners work 70+ hours, and some are always on!
Starting a business demands commitment, and not everyone has the patience for it. It doesn't necessarily allow you to have more freedom but more control over how you would like to proceed with your career and life.
You will need to compromise more than usual as you interact with customers, investors, and staff. Whereas before, you would have to follow your manager's requests and tasks, as a business owner, you will handle requests internally and externally.
I like to think that the concept of freedom and productivity is relative. You will have to decide what's worth your time and what is considered efficiently using your time?
If you want to learn some tips on leadership and confidence, you can read one of our articles about it here.
2. You will need a lot of money.
Sure, funding a business will need money. But technically, the cost of funding one would depend on the kind of industry you'll be planning to enter.
Think about it for a moment. If you were to start a business revolving around an oil refinery, you would need a lot of money as it's an expensive niche. In comparison, a small business that sells and delivers baked goods wouldn't cost much.
If you're unsure if your savings or personal money would be enough to start a business, you can find investors on your business plans and ideas. You can seek out Angel Investors.
Investopedia defines Angel Investors as high net-worth individuals backing a startup. They can either provide a one-time investment or play a huge role in supporting your business.
If you want to look for an Angel Investor, you can check out the UK Business Angels Association (UKBAA). Be sure that you do your research before looking for investors.
3. You have to do everything on your own
Starting a business doesn't necessarily mean you'll be doing everything on your own. You will eventually need to hire employees and build a team.
It's vital that you have support when running a business. Because the only way you can expand your business is by building a team that can effectively carry out tasks to make production and operations run smoothly.
For tips on how you can start hiring employees, check out this link.
4. You need to know everything about your startup.
You will need to do some research, and you will make some mistakes along the way. But every entrepreneur out there has gone through not knowing everything in one go.
So take some time. Learn what you can about the industry and niche you're planning to enter.
5. You'll get supported (You're most likely to get support from your business coach than your loved ones)
Not everyone in your life will support your decision in creating a startup. It's a bitter pill to swallow, but it's the truth.
There could be several reasons why your family and friends might not support you. But it's an excellent motivator to prove them wrong.
Due to this, I suggest that you look for like-minded individuals who will support you. You can look into online startup groups, look for a business coach to guide your startup journey, or for friends in the same niche or industry.
6. You're a small business—no need for a work culture.
Work culture for any given company is vital. Regardless of being a small and medium enterprise or a large company, work culture is crucial in your company's overall productivity.
As the founder and leader of your startup, you will need to set the tone of your company's work culture. Once you've decided on the tone and expectations of every employee within your company, you'll discover how easier it will be to manage your business.
7. You won't earn a lot until you become a big company.
What's necessarily important once you have a startup is by generating more income compared to your expenses. I believe business startups that generate a slow rising income over time are better than those that suddenly have sudden spikes of profits but have meagre gains throughout the rest of the year.
8. A business needs staff.
This might seem like it's contradicting tip number three, but it's not. If you don't have the budget to hire staff, then don't hire staff, especially if you think you can do it on your own for the time being.
Many business startups were founded with only one person running around until they managed to expand to the point that they had to hire staff.
It's all about knowing when you need extra hands and when you can still do it on your own.
9. You will have to work 24/7
Yes, many founders and CEOs of startups work outrageously long hours. But that doesn't excuse giving yourself enough time to rest and have self-care.
Be sure to give yourself some time besides work or else. You're going to burn yourself out.
10. Good friends make good co-founders.
Some friends make excellent business partners. But before you and your friend set out to create a startup, you have to logically see the pros and cons of partnering up with each other.
There will be times that you will have to set aside your relationship with your friend and logically discuss how the business will function. You will argue a lot and have disagreements.
But if you think your friendship can withstand that kind of stress and whatever challenges you will face in having a startup, then go for it!
11. You will earn more money compared to average employees.
Let's be honest. In the first couple of months of your business, you won't be earning much.
You might not be earning the same amount compared to when you were working your full-time job.
If you still want to earn steady cash but want to start your business, you can always get a day job while your business is steadily gaining profits. Many people have done this, and eventually, they quit their job to manage their businesses.
12. Working harder guarantees success
I think it all comes down to not working harder but to working efficiently. Sure, a lot of founders and CEOs work long hours (including me) but not everyone.
I know some business owners that were working four hours a day. They only work four hours because they prefer rushing and setting up deadlines as that's when they felt the most creative and productive.
So if you're struggling and comparing yourself to others because you feel like you're not doing enough, don't be too hard on yourself.
13. You're a failure if your business is not yielding results right away.
Failing and making a lot of mistakes are part of the process. Your business is still starting, so I don't understand why many people think that you're failing if your business isn't earning profit right away.
Again, as I have previously mentioned, you will not be getting the results you want right away when starting your business.
And sometimes, your business won't work out, and you will have to close it. I know some business owners who had several failed businesses until they finally found the industry and niche they could profit from.
It's not the end of the world if your business fails. What's important is that you learn from the experience so that you will know what to do in your next business next time.
Final Thoughts
These are just some of the misconceptions out there when starting a business, as there are more out there. Hopefully, by reading this article, you will be encouraged to create your own business.
