While there's a certain amount of risk in any new venture, fear shouldn't stop you from starting your business. If you're an entrepreneur who knows you have what it takes, don't let these 5 common myths about starting a business deter you.
Myth #1: I don't have enough cash.
Cash on hand to invest in a business is always good, but it's not always necessary. It depends on your business idea. Many entrepreneurs start small, eventually expand their businesses, and end up being highly successful. Starting small means you need less cash upfront to start your business. If you have grandiose business ideas and you can't scale them back for a smaller start, then find investors or obtain bank financing.
Myth #2: But I don't know anything about marketing!
Au contraire; as a matter of fact you do. No one knows more about your product or service than you, the person who created it. If you believe in it and think there's a need for a particular product or service, then the chances are pretty good that there are others who feel the same way. All you need to do is talk about it, which you're probably doing all the time anyway!
Myth #3: I shouldn't start a business in this economy.
There's no time like the present. Did you know that many successful businesses were started when times were tough? Ever heard of Burger King, FedEx, and Sports Illustrated? All of them were started during recessions and became highly successful companies. There's a lesson to be learned here. If you have a great idea, don't let an economic downturn get in the way of your entrepreneurial spirit.
Myth #4: No bank would give me financing, would they?
Small business financing isn't as hard to get as it seems. With decent credit and a good business plan, you can probably get a small business loan. But the bank isn't your only resource. Check out the SBA's Financial Assistance page for financing help and ideas.
Financing or not, it's important to keep costs down when you can. Just because you can get money for something doesn't mean you should. Find creative ways to save money by streamlining your ideas, scaling back, or just doing without until your business is more profitable.
Myth #5: I'll be rich in no time!
We wish this was true, but unfortunately, starting a business takes hard work and it will take time to reap the financial benefits. If you start a business expecting instant wealth, you'll undoubtedly get discouraged and give up. Make sure you have realistic expectations about your success. It will come, but it probably won't come instantly.
The bottom line is that statistics shouldn't stop you from pursuing your dreams. While there is a little bit of luck involved, whether or not your business succeeds is mostly up to you. If you have a great idea and you're willing to work hard, LegalZoom can help you get started with an incorporation, LLC, or DBA.
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