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Demystifying Common Myths About Starting a Company
There are a few common myths that the small business owner faces when they’re going to start their startup. Many of the things that one hears about starting a business are not true-they are just misconceptions or urban legends that have often been repeated that many people now believe to be true.
Some individuals believe that there are investors lining up to loan cash to their startups. Financing startup companies is not their main region of focus even if venture capitalists may exist. Their purpose of investing in a business is to make money, but since most startups do not do so well in their first years, they hesitate in investing in such businesses. One of the rules that investors use is that the business they want to invest in should have a great three year track record in place. It’s very difficult for startups to match this criterion. Nevertheless, all isn’t lost for the small business owner. There are other alternatives that they can pursue to raise the much-needed capital. You can secure a loan from the small business administration under the category 7 (A) programs and 504 programs. You can bootstrap your organization from your individual finances, if you are not a huge fan of loans. There are many entrepreneurs who have turned to bootstrapping, and it has turned out to be a great success in their opinion.
Many people believe that starting a business allows them the freedom to choose their working hours. Entrepreneurs are known to be among the hardest working individuals on the planet. You give up any freedom you have when you open your small company, unless you might have plenty of cash saved up that you don’t want your organization to be successful. You could possess some flexibility in allotting your free time but starting a business will certainly use up much of your spare time.
Others believe that when they start the right company that it sells itself and they do not need a business or marketing strategy to prosper. You can’t replace a business plan and having a well-planned marketing plan to market your merchandise. Business plans are essential in ensuring that you understand what it’ll take for you to be successful and that you have an outline of how to achieve your goals and getting investors.
Now, with all the suggestions listed above, you’ve some of the advice that you need as you consider a business startup. You may get loans from the SBA or even get some investors to back you up but remember that with money, you should always have your facts clear. Make sure that you have done exhaustive research on all that goes into establishing a startup before you invest any money in any company.