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8 Myths About Starting An Online Business

8 Myths About Starting An Online Business

You’ve come up with an awesome new product idea. Of course, it happened in the shower and you scrambled to jot it down. After rambling about the details to your friends and family, you’ve finally mustered up the courage to build a prototype.

Once again, your family and friends give you the thumbs up, but you’re still far from launching an online business. Everything about it sounds intimidating. You’ve watched far too many episodes of Shark Tank to the point that you’re scared about financing, building a website, and keeping up with marketing.

It seems strange to think about it at such an early stage, but saving money for your online business is often priority number one. Why is this the case? Because chances are you don’t have that much start-up capital and most successful businesses pinch pennies in the early stages regardless.

This gets you thinking about some of the statements you’ve heard about managing your costs, some of them coming from Shark Tank, but most of them coming from naysayer friends or people you’ve met at social events.

Here’s a tip: Forget about all of those statements, because chances are they’re myths. Your business plan is better without them, but it’s also important to realize which of them are myths in order to decide on which you should brush aside.

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You’re in luck, because we’ve compiled some of the more misleading myths about the costs of starting an online business. Go and grab your pen (or bookmark this page,) because you may find some surprising insights.

Myth 1: You Can Start an Online Business for Free (Or A Small Amount of Money)

You’ve all seen the ads that tell you about certain online website building platforms that provide free services (or close to free) online shop creators. In addition, there’s always that self-employed friend that’s telling you how inexpensive it is to get started online.

Although the ideal online store building solutions are fairly inexpensive, you can’t possibly expect to spend less than at least $500 per year on just your website. After all, this is your storefront. It’s the primary way you’re going to make money, and if you plan on expanding that business, it’s going to require investments.

The free (or close to free) online business is a marketing ploy to prompt you into buying. That doesn’t mean you have to spend $10,000 your first year developing a site, but it’s prudent to budget for more, rather than nothing.

Myth 2: You Can Only Start an Online Business With Lots of Startup Capital

On the opposite side of the spectrum, the days of spending ten or twenty thousand dollars on a web developer or marketing person are over.

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Yes, development is often the most expensive part of building a new website, but tools like Shopify, Bigcommerce, and even WIX provide you ready-made tools for launching your site and expanding it to a powerhouse. You don’t need a huge donation from your dad, so leave him alone already.

Myth 3: Many People Who Work Online Work Part-Time Hours but Make Full-Time Wages

Sure, you could go with a low cost business idea, like arts and crafts or selling your freelance services, but people who partake in these endeavors still put in the work to bring in clients and run their businesses just like anyone else.

In fact, one could argue that the traditional 40 hour job is impossible while running an online business, since you’re more likely to spend 80 hours per week nurturing your own company.

Myth 4: Social Media is a Costless Marketing and Money Making Outlet

Anyone who has made significant conversions through Facebook, Twitter, or Pinterest can explain that social media marketing is far from free. Not only do effective advertisements cost money, but your strategy also requires loads of time and effort. In addition, you may end up hiring a social media person to manage the whole ordeal.

Myth 5: You Can Automate Everything When Selling Online to Cut Down on Labor Costs

Young business owners are prone to look for solutions that can completely automate their selling process. This ties into the fact that so many people crave the 4-hour workweek, but it also coincides with the numerous different apps and tools that have come out to automate processes.

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Let’s break it down.

You can’t completely automate your customer support. You can’t completely automate your social media. You can’t completely automate your receipts and promotions and returns. Labor costs are required, because people run businesses. It’s essential to keep this in mind for your budget.

Myth 6: A Large Promotional and Advertising Budget is the Key to Success

Mark Cuban repeatedly talks about how pouring money into a promotional budget is the last thing you want to focus on with a young company. This comes as a surprise, but you probably can’t even get an investment or SBA grant unless you can already prove that your business functions without the need for a huge marketing budget.

Myth 7: Processing Payments is Going to Break the Bank

Although it may be true that payment processing fees are going to pile up, putting in quality research to locate the most cost efficient solution can cut those processing costs and keep your company afloat for quite some time.

In fact, it’s imperative to locate the right payment gateway company for your brand, because 1% or 2% extra on each transaction can add up quickly.

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Myth 8: All Tasks Must be Completed by You or You Must Hire Someone Full-Time to Do Them

Online business owners frequently feel like every task must be completed in-house, whether it’s with their own sweat and blood or by hiring a full-time partner who can assist them with tasks such as web development, graphic design, social media, and email marketing.

Nothing is further from the truth, because nowadays freelancers are your friends. Hundreds of sites provide gathering spots for graphic designers, writers, social media workers, and even data entry freelancers – all of whom are poised to work for you for reasonable rates. There’s no reason to hire a graphic designer and put them on your payroll when you can turn to a trusty freelancer on an as-needed basis.

Over to You…

The various myths about small businesses frequently change, so continue doing your research to ensure that you don’t fall behind the times. Think about it. Some of the myths outlined above may very well have been true a while back; however, times change. Flexibility and awareness are key components in your entrepreneurship arsenal.

Can you think of any other cost myths that hold back online businesses?

Featured photo credit: Computer/Wild Zontar via flickr.com

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Melissa Burns

Entrepreneur

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Last Updated on February 20, 2019

Achieve Career Success at Any Age: 17 Things to Keep in Mind

Achieve Career Success at Any Age: 17 Things to Keep in Mind

“Success” is defined as “the accomplishment of an aim or purpose.”

Ipso facto, as long as you have a purpose you can be a success. Being “successful” can occur at any age, from youth to the retirement home. It can be in any field of endeavor – just ask the folks doing triathlons in their late 80s. It can be as simple as running a foot race, and as complex as starting a new business, or as important as being a caregiver to the terminally ill.

Succeeding is the norm for many people. In my life, I was a high school track star, running the high hurdles despite being “vertically challenged”. I launched a successful semiconductor services company that was profitable from day one. I grew that startup into a publicly traded semiconductor company, that I ran for 37 years (36 profitably). I completed taking the company public shortly after going blind, and still led the company as its CEO for another 20 years. And now in my so-called retirement, I am writing books that are required reading in business schools.

And I’m nothing special. I just understood early on that “success” is a mindset, and that there are a few necessary tactics to being successful.

Interestingly, the same factors that tend to make you successful in one of those endeavors are the same factors that make you successful in all of them. Here are the attributes I find to be most enduring.

1. Learn to love doing the things you hate

Don’t you love to procrastinate? Sure. Everyone does. But procrastination is the #1 barrier to success, even more so than self-doubt.

We procrastinate most about the things we dislike – everything from doing the dishes to doing our taxes. But putting off the things we hate improves nothing and impregnates our minds with the dread of having to do it anyway.

When you learn to find amusement or joy in doing what you hate, you quit hating it and quit procrastinating too.

But how do you find joy in unlovable tasks? Two elements are important:

First, search for how the task adds to your overall connection. For example, many tech leaders have no love for accounting until they learn how those numbers help them to monitor the success of their operations or anticipate changes in their markets. Knowing how the unlovable fulfills the lovable is a large first step.

Secondly, find joy in the intricacy of the task itself. This is a bit Zen in nature, but focusing intently on the task at hand detaches you from other concerns. Consider focusing intently on unwelcome task as a vacation from other worries.

2. Start the day doing the “Tough Things First”

I published my first book – Tough Things First – in my late 70s. Writing a book, finding a publisher, doing speaking tours, signing what seems like millions of autographs was tough. But in 37 years of running the semiconductor company I founded and took public, I learned that the small problems largely solve themselves once the big, tough problem is completed.

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No matter what you are trying to accomplish, list what needs doing that day and put the hardest, most difficult task on the top of the list – or as I like to say, “eat the ugly frog first.” This makes you happier, more energized and about 20% more productive.

The easy way to achieve this is simply write down the ten most urgent and important things that need doing, then sort that list starting with the least enjoyable – the ugly frogs. Don’t even think about task #2 until task #1 is finished.

3. Watch your health

Good health and good success go hand-in-hand. Nobody does well when they don’t feel well, so get a good night’s rest, eat a healthy diet, exercise regularly, and don’t stress small stuff.

Many successful people I know like to exercise in the morning. By making this a priority, they build-in an activity that aids in good sleep and is known to help with stress reduction.

It is also a good time to mentally create your list of ten urgent and important tasks.

4. If you are young, think old; if you are old, think young

Youth may be wasted on the young, but old age is wasted on the elderly too. It is the intersection of wisdom and exuberance that makes really great things happen.

The young can learn the wisdom of their elders, and the old can always find something new to try. Embrace every facet of your journey, throughout your journey.

Thinking old when you are young is quite easy and starts by finding a mentor. Everyone needs a mentor, even if it is just calling “dear old dad” and asking for advice.

For entrepreneurs, you reach out to experienced business people, most of whom genuinely love helping.

For older folks, thinking young is a bit trickier. Foremost, keep your curiosity well fed. Youth is all about adventure, experience and learning, and none of that happens unless you are curious. A good way to stay curious starts with assuming you don’t know everything and unlearning old falsehoods. Start your day (after your morning exercise and ugly frog eating) challenging an assumption you are ready to speak and do so by asking a question.

5. Be a good listener

Success comes from learning, and you can’t learn when you are talking. Seek to understand before being understood, listen actively, ask questions and absorb. This will garner you all the information you need to make better decisions.

The right way to listen is to do so actively. Concentrate on every word the other person says, ignore your internal monologue, and suppress the natural desire to form your next statement in advance.

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These 13 Powerful Listening Skills will improve your work and life.

6. Dress one level better than required

Mark Twain allegedly once joked that:

“Clothes make the man. Naked people have little or no influence in society.”

It doesn’t matter if the occasion is a job interview, a date, a business meeting or a social gathering. People who underdress underwhelm.

Think about how you would want to perceive an interesting person at the occasion, then dress 10% better.

Even if you’re on a tight budget, here’re still some tips for you to dress for success.

7. Be wise, not smart

There are a lot of people who are smart and can critically think, but often they think toward the wrong conclusion.

To be wise is to have experience, knowledge, and good judgment. You don’t need to first acquire a life time of wisdom – you can get that on the fly from mentors. But you do need to bow toward wisdom as much, and perhaps more so, than sly pondering.

One aspect of wisdom is anticipating all the effects a decision you make may have. Take a moment before making a decision to think about everyone and everything that will be affected, not only immediately but at least once removed (the echo effect).

8. Be trustworthy

My marketing director likes to say that “an untrusted brand is an unprofitable brand”. He is right, and since you have a personal brand, you cannot be successful in life if you are not trusted.

The only way to be worthy of trust is to always do the right thing. Trustworthy people never do these 10 things.

9. Have impeccable integrity

Integrity is the process of doing the right thing even when nobody is watching. Acts of integrity get noticed, especially in our modern era where it appears to be in short supply. When you display integrity, you earn trust (see the bullet above).

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Learn here How to Succeed with Integrity in a Competitive Workplace.

10. Start early and stay late

You need not be a workaholic. Despite founding and leading a public company, I rarely worked more than 50 hours a week. But you do have to put in sufficient time to get your job done, and you need to set good examples for others.

Get going before the day demands your attention, and stay as long as necessary to wrap up loose ends.

11. Work smarter not just harder

This meme sounds trite, but it is very important.

One mistake many people make is taking on personal responsibility for everything instead of delegating. A consultant I know refuses to clean his own house because he charges $100 an hour while a maid costs $20. It is smart of him to pay his maid in order to stay focused.

Knowing when you are working too hard is the goal. Some people thrive on working day and night, but then are surprised when their marriage falls apart. You know you are working too hard when the costs – poor health, bad relationships, grumpy employees – are higher than any benefit you might be acquiring.

12. Never give up

Everyone, including me and you, will face challenges big enough that we want to quit. But quitting is failing, the opposite of success.

If your goal was good enough to start working toward, it is good enough to keep working toward, despite setbacks, despite complications.

Stick to the project until it sticks to you. Giving up is not an option and this it how to stay motivated.

13. Be happy and friendly

Nobody likes helping a grump … and everybody needs help.

And there’re more reasons why you need to make friends at work.

14. Be passionate, not eager

Passion involves having strong feelings or beliefs, while being eager means wanting something.

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We all want things yet wanting is never enough. But being passionate about something provides you fuel for the journey, the desire to start, continue and finish.

Not quite sure about your passion? Leo Babauta has got you some advice to find your passion and live a fulfilling life.

15. Have a clear vision of your purpose and mission

Success is about going somewhere, achieving a goal. But you cannot get to where you want to be unless you know where that is.

If you cannot explain your vision to someone else clearly in a few words (what we call an “elevator pitch”) and make them understand it, then you don’t have a clear view of your destination, and you won’t get many people to follow you.

If in doubt, write down your mission, then share it with someone not involved with your project or business. If they cannot understand what the mission is, then you don’t yet have it firmly defined in your own mind.

16. Be a worthy servant leader

Being successful will likely involve more than just you. It may require employees, community members, family, a congregation, or voters. You succeed only when they do, and that means you have to serve them first.

When you adopt the mindset of “what do I need to do so that they can succeed in the mission I have set forth”, you change the way you and they work together.

17. Be meek, not weak

Meekness involves being quiet and gentle, not submissive. The key is to dispose of your ego and adopt constant humility, which will get you further than sheer drive.

People may obey a hard nosed boss, but they will love and follow a humble leader.

If you want to be an effective leader, don’t miss out this guide:

How to Be an Effective Leader (A Step-By-Step Guide to Upgrade Your Leadership Skills)

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Featured photo credit: rawpixel via unsplash.com

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