Failure in business is not something most entrepreneurs are prepared for. Most entrepreneurs have their head high up in the clouds with the dreams of making the next billion-dollar business so it is truly a heartbreaking experience, but it’s a proof that we don’t learn from success. It’s the heartbreaking and the painful part that teaches people their lessons.
Besides the improper planning and wrong moves, here are some myths about starting business which may be stopping entrepreneurs from starting and thriving in the process.
1. You have to know everything about business
Is there anyone who knew everything that they needed to know to begin a business from Day One? Traci Des Jardins, one of the most well-known chefs around town, was trained by some of the best chefs and restaurateurs in the world. Traci launched her own restaurant Jardinière in San Francisco in 1997. When she expanded her restaurant empire, her biggest challenge was raising money. She had no formal training in business, so she leaned on a business partner to help her figure it out.
If you think you don’t have idea for a business, think of problems. Yes, problems are opportunities.
A successful business solves problems. Business writer, Robert Jordan, said the ability to act without full information can be a strength when starting a business.
Every entrepreneur should learn to embrace the learning process, because if there is anything constant in business, it’s the changes along the way. Indeed, “skill and money isn’t the answer for the entrepreneur, it is knowledge from books, observing, and asking”. This is what Anita Roddick emphasized in her book Business as Unusual. While it’s important that you know enough about the industry you’re trying to build a business on, you don’t need to know everything.
2. You should have a full business plan
Contrary to myth, a good business-person doesn’t need a detailed business plan to start a business. We’re often told that a business plan is a must to help guide the company, and to avoid losing focus. According to Garrett Moon, the co-founder of CoSchedule, it’s more like a safety net to make sure that you actually lose focus. Moon says, “When people do nothing but execute a plan, they lose the ability to innovate and adjust to the changing waters of business.”
3. You need to wait for the right time to get started
Indiegogo’s hard-earned success is a proof that you don’t need to wait for the right time to start a business. Slava Rubin, the CEO of Indiegogo, started the company months before the financial crisis of 2008. When the economy took a hit, many people advised them to shut down. Despite that, Rubin and his cofounders were so passionate about their efforts to democratize fundraising that they pressed forward at all costs.
4. You have to work 24/7
According to entrepreneurial urban legend, you need to work 24/7 to run a successful business. Andrew Wilkinson, CEO of MetaLab, has a different view on this. He emphasized that you don’t have to make yourself miserable to build a great company. What’s the use of working 80 hours a week and getting paid four times more than you used to, when you can’t even have a social life?
Andrew knew what it’s like to work non-stop and decided to stop this kind of life for the sake of his own sanity. Now, Andrew enjoys being getting eight hours of sleep each night and spending more time with family, while still managing a successful company.
5. You need a lot of money to begin
Many businesses believe they need a venture capital to begin. But now that crowd-funding platforms allow people to raise money, it’s time to rely less on venture capital. The fact that crowd-funding also attracts a global audience, including potential clients, is a huge factor.
Satari Star Swivl, a movement tracking dock, presented the product to multiple investors in California. Although they got rejected every time, their Indiegogo campaign raised more than $24,000 in two months. A common excuse among people is: “I need money to make money.” In spite of that, it’s possible to start a business with little or no capital in many ways. One of which is through offering services instead of selling physical products. For example, Greg Miliates, founder of a consulting firm, started his business inexpensively.
6. You need to spend money to make money
While it’s a known fact that it takes money to make money, many entrepreneurs have turned their ideas into profitable businesses without relying on a hefty marketing budget. Andrew Keller, vice president and associate creative director of Crispin Porter + Bogusky, shares that you could have successful marketing campaign provided that you know your brand extremely well. Keller says, “You’ve got to know you’re brand. You need to really know your brand. You’ve got to be 100% on brand all the time. So talk to the right people.”
7. You need to have control of everything
Who else in the world knows about your business but yourself, right? Most entrepreneurs feel the need to have control and knowledge about every single division and part of the operation. While it makes sense to stay on top of everything, many entrepreneurs struggle to scale their business because of this very issue. Wise entrepreneurs know when to give up on power and authority. They know when to delegate, so they can focus on much more important matters of the operations. Forbes contributor, Paul B. Brown, has highlighted the importance of giving up control in order to build a successful business as it allows the business not to rely on just one person. It also gives the business the ability to grow faster.
8. You have to under-promise and over-deliver
While it’s ideal for personal relationships, setting the bar low right at the start may prove to be unhealthy for the business in the long run. Instead of giving the customers the very best products and services right from the start, businesses that tend to provide so-so experience to its customer may actually hamper the business growth. Customers will soon start fleeing when they find much better options that don’t hold up when it comes to quality and overall experience.
Many entrepreneurs struggle in turning their business ideas into a successful startup as they’re clouded with several myths that they may been told in the past. The best way to combat these myths is consciously commit to not fall into any of those above-mentioned.
Featured photo credit: Flickr Creative Commons: Cristian Bortes via flickr.com