The 17 Most Misunderstood Facts About Starting A Business
The 17 Most Misunderstood Facts About Starting A Business
Starting a business is definitely a challenging task but it does open several opportunities to run with many ideas and see whether they work or not. It is a way by which you can bring your passion to life as you help make people live a better life. It also serves as an avenue to place someone else in charge of your work. Choosing a business structure and making business plans for most can be a daunting process. However, when you choose a good business name and start building your team, you’ll be glad you choose this time to start. Starting a business can be the most mind boggling, happy, frustrating adventure of your life. Below are some of the misunderstood facts about starting a business.
1) Founders Are Their Own Bosses
Several people usually believe that the boss in any organization is the founder which is not true. This is because the founder would definitely answer to someone who could be the investors, board or the customers. After all, the customers keep the lights on and not the founder of an organization.
2) The Founder Should Do Every Job in the Early Days
When starting a business, many founders usually complain that they don’t have enough time to invest into content marketing or customer development. Yet they spend hours on other tasks such as internet research, scheduling and formatting investor decks. Even when you don’t have enough money, you should recognize where you will get a great return on your time and can also outsource less essential task so as to concentrate on the important ones.
3) Starting a Business Is the Best Way to Get Rich
Most people believe that the only way to get rich is to start a business but there are several other ways to get rich aside starting a business. For instance, by investing in yourself, building a strong network, learning a valuable skill and saving intelligently, you may be able to achieve more financial freedom than an entrepreneur. Now a days, there has been a big emphasis put on becoming a lifestyle entrepreneur. Also interested in starting your business online? Signup for web hosting and domain names is the first step in the process. You can try Bluehost for only $3.95/month.
4) Launching at an Industry Conference Will Set You Up for Success
Most founders seem so excited because they are to be launched at a particular conference. Although, launching at conference is very good and exciting but this strategy may not work every time. Also most people that sign up for the event may end up with individuals that do not fit their customer profile and such may result to a poor feedback as well as misguided product. Conferences can lead to other business opportunities, so keep that in mind.
5) You Should Keep Your Product Secret Until It’s Ready
The idea of keeping your product secret may be wrong because there are several people with your idea. These individual may end up revealing their own product before you do and that would affect your business. You should always have a marketing plan before you go to market. Always do your market research before a business launch.
6) You Need to Take a Lot of Huge Risks
Entrepreneurs are often associated with high risk and this tends to scare away first time entrepreneur when it comes to decision making. Since finding startup financing can be tough, some aspiring entrepreneur get an angel investor or take the risk of using their credit card to get started. However most of the big entrepreneurs who win consistently are quite risk-averse. They will make a calculated bets and take smaller risks, this is because smaller risks and hedging against loss helps you to stay around for a long period of time and also gives you the time to place a lot more calculated bets.
7) Everyone Shares Your Problems
When starting a business, this is a not true because having a particular problem does not means that our customers do or they share the same belief with us. Realizing the truth about this is one of the most eye-opening business lessons you can ever come across.
8) You Should Raise Money Whenever You Can
Just because you have an offer to fund your business doesn’t mean you should fund it. This is because such offer would affect your business objective and goals, and you will also be eager to produce the cash which is used in funding the business. Also, the pressure of producing the money may kill the business at the early stage. Don’t forget there are crowdfunding platforms you can use to raise funds. Also lots of small business grants and business loans available through your bank and the government. In order to get these, you must have an employer identification number, the proper licenses and permits and legally register your business name.
9) Founder Dilution Isn’t a Problem
There are some founders and business partners that have the opinion that it is better for them to hold a small business than holding a share in a large business. This is true to some extent but the chances of growing their business to a great standard will be limited compared to owning a share in a large business.
10) Spamming People on Social Media Is a Good Marketing Strategy
There are some people that feel spamming is a good strategy but this is totally wrong. However the creation of value for your customers will make you unique among pairs. Use social media to your benefit. You need to use it to grow your business. A few good business ideas are to keep your social media messages simple and informative.
11) You Need to Rent an Office
Some things are not essential in the early days of a business. You can work from home, coffee shops or various places and generate thousands of dollars per month. When strapped for cash, you need to reduce startup costs to a minimum. A home office is an excellent choice when starting your own business.
12) Your First Hires Should All Be Developers
If the whole members of your team are developers, you may be missing some critical business functions such as marketing, human relation etc. Thus, you should consider some crucial aspect of the business before hiring the first set of employees.
13) It’s All About the Product
Another belief is that once you build a product, you have already won. But products doesn’t win business do. And if you want to have competitive advantage, your product is not the only thing to consider. You also need to think of outperforming your competitors.
14) If You Can Just Land That Huge Customer, You’ll Win
Several business owners usually think that they only need to get a big customer to make it but this is wrong. There are some customers that will make an agreement with you when you meet them but would later disappoint at the point of making purchase.
15) Your New Rockstar Developer Will Turn Your Company Around
Although, it is essential to have a good developer but such individual can’t make or break your company. The assistance and support of supporting cast such as human resource, marketing are needed to make people use your product would go a long way.
16) “We Can Worry About Money Later”
This idea is what you will come across on several trends and it’s great. But the challenge is that you can’t keep asking for money from people while telling them they shouldn’t worry that you will make money later. After choosing a legal structure and setting up for business taxes, you should be on your way to start making money. Don’t forget to work on your business credit so that you can have funding in the event you need supplies. Every business gets a business credit score, make sure to keep up with all federal taxes owed and bank account.
17) Everything Needs to Be Scalable
Scalability is another common concept in the startup world but the essential point that most people miss is that the strategies that is needed now is quite different from the ones that would be needed later. There are several things that would be done that won’t work and would have to be stopped.
How important is it to you, to finally start your business ?