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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

More by this author

Melissa Burns

Melissa is an entrepreneur and independent journalist. She writes about communication, entrepreneurship and success on Lifehack.

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Last Updated on November 5, 2020

Why You Have the Fear of Failure (And How to Overcome It)

Why You Have the Fear of Failure (And How to Overcome It)

Nobody enjoys failing. Fear of failure can be so strong that avoiding failure eclipses the motivation to succeed. Insecurity about doing things incorrectly causes many people to unconsciously sabotage their chances for success.

Fear is part of human nature. As an entrepreneur, I faced this same fear. My ego and identity became intertwined with my work, and when things didn’t go as planned, I completely shut down. I overcame this unhealthy relationship with fear, and I believe that you can, too.

Together we’ll examine how you can use failure to your advantage instead of letting it run your life. We’ll also look at how to overcome fear of failure so that you can enjoy success in your work and life.

What Is Fear of Failure?

If you are afraid of failure, it will cause you to avoid potentially harmful situations.

Fear of failure keeps you from trying, creates self-doubt, stalls progress, and may lead you to go against your morals.

What causes a fear of failure? Here are the main reasons why fear of failing exists:

Patterns From Childhood

Hyper-critical adults cause children to internalize damaging mindsets.[1] They establish ultimatums and fear-based rules. This causes children to feel the constant need to ask for permission and reassurance. They carry this need for validation into adulthood.

Perfectionism

Perfectionism is often at the root of a fear of failure.[2] For perfectionists, failure is so terrible and humiliating that they don’t try. Stepping outside your comfort zone becomes terrifying.

Over-Personalization

The ego may lead us to over-identify with failures. It’s hard to look beyond failure at things like the quality of the effort, extenuating circumstances, or growth opportunities.[3]

False Self-Confidence

People with true confidence know they won’t always succeed. A person with fragile self-confidence avoids risks. They’d rather play it safe than try something new.[4]

How the Fear of Failure Holds You Back

Unhealthy Organization Culture

Too many organizations today have cultures of perfection: a set of organizational beliefs that any failure is unacceptable. Only pure, untainted success will do.

Imagine the stress and terror in an organization like that. The constant covering up of the smallest blemishes. The wild finger-pointing as everyone tries to shift the blame for the inevitable messes onto someone else. The lying, cheating, falsification of data, and hiding of problems—until they become crises that defy being hidden any longer.

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Miss out on Valuable Opportunities

If some people fail to reach a complete answer because of the lure of some early success, many more fail because of their ego-driven commitment to what worked in the past. You often see this with senior people, especially those who made their names by introducing some critical change years ago.

They shy away from further innovation, afraid that this time they might fail, diminishing the luster they try to keep around their names from past triumph.

Besides, they reason, the success of something new might even prove that those achievements they made in the past weren’t so great after all. Why take the risk when you can hang on to your reputation by doing nothing?

Such people are so deeply invested in their egos and the glories of their past that they prefer to set aside opportunities for future glory rather than risk even the possibility of failure.

High Achievers Become Losers

Every talent contains an opposite that sometimes turns it into a problem. Successful people like to win and achieve high standards. This can make them so terrified of failure that it ruins their lives. When a positive trait, like achievement, becomes too strong in someone’s life, it’s on the way to becoming a major obstacle.

Achievement is a powerful value for many successful people. They’ve built their lives on it. They achieve at everything they do: school, college, sports, the arts, hobbies, work. Each fresh achievement adds to the power of the value in their lives.

Gradually, failure becomes unthinkable. Maybe they’ve never failed yet in anything that they’ve done, so they have no experience of rising above it. Failure becomes the supreme nightmare: a frightful horror they must avoid at any cost.

The simplest way to do this is never to take a risk, stick rigidly to what you know you can do, protect yourself, work the longest hours, double and triple check everything, and be the most conscientious and conservative person in the universe.

If constant hard work, diligence, brutal working schedules and harrying subordinates won’t ward off the possibility of failing, use every other possible means to to keep it away. Falsify numbers, hide anything negative, conceal errors, avoid customer feedback, constantly shift the blame for errors onto anyone too weak to fight back.

Loss of Creativity

Over-achievers destroy their own peace of mind and the lives of those who work for them. People too attached to “goodness” and morality become self-righteous bigots. Those whose values for building close relationships become unbalanced slide into smothering their friends and family with constant expressions of affection and demands for love in return.

Everyone likes to succeed. The problem comes when fear of failure is dominant, when you can no longer accept the inevitability of making mistakes, nor recognize the importance of trial and error in finding the most creative solution.

The more creative you are, the more errors you are going to make. Deciding to avoid the errors will destroy your creativity, too.

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Balance counts more than you think. Some tartness must season the sweetest dish. A little selfishness is valuable even in the most caring person. And a little failure is essential to preserve everyone’s perspective on success.

We hear a lot about being positive. Maybe we also need to recognize that the negative parts of our lives and experience have just as important a role to play in finding success, in work, and in life.

How to Overcome Fear of Failure (Step-by-Step)

1. Figure out Where the Fear Comes From

Ask yourself what the root cause of your negative belief could be.[5] When you look at the four main causes for a fear of failure, which ones resonate with you?

Write down where you think the fear comes from, and try to understand it as an outsider.

If it helps, imagine you’re trying to help one of your best friends. Perhaps your fear stems from something that happened in your childhood, or a deep-seated insecurity.

Naming the source of the fear takes away some of its power.

2. Reframe Beliefs About Your Goal

Having an all or nothing mentality leaves you with nothing sometimes. Have a clear vision for what you’d like to accomplish but include learning something new in your goal.

If you always aim for improvement and learning, you are much less likely to fail.[6]

At Pixar, people are actually encouraged to “fail early and fail fast.”[7] They encourage experimentation and innovation so that they can stay on the cutting edge. That mindset involves failure, but as long as they achieve their vision of telling great stories, all the stumbling blocks are just opportunities to grow.

3. Learn to Think Positive

In many cases, you believe what you tell yourself. Your internal dialogue affects how you react and behave.

Our society is obsessed with success, but it’s important to recognize that even the most successful people encounter failure.

Walt Disney was once fired from a newspaper because they thought he lacked creativity. He went on to found an animation studio that failed. He never gave up, and now Disney is a household name.

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Steve Jobs was also once fired from Apple before returning as the face of the company for many years. [8]

If Disney and Jobs had believed the negative feedback, they wouldn’t have made it.

It’s up to you to notice your negative self talk and identify triggers[9]. Replace negative thoughts with positive facts about yourself and the situation. You’ll be able to create a new mental scripts that you can reach for when you feel negativity creeping in. The voice inside your head has a great effect on what you do.

How To Be A Positive Thinker: Positivity Exercises, Affirmations, & Quotes

    4. Visualize all Potential Outcomes

    Uncertainty about what will happen next is terrifying. Take time to visualize the possible outcomes of your decision. Think about the best and worst-case scenarios. You’ll feel better if you’ve already had a chance to mentally prepare for what could happen.

    Fear of the unknown might keep you from taking a new job. Weigh the pros and cons, and imagine potential successes and failures in making such a life-altering decision. Knowing how things could turn out might help you get unstuck.

    5. Look at the Worst-Case Scenario

    There are times when the worst case could be absolutely devastating. In many cases, if something bad happens, it won’t be the end of the world.

    It’s important to define how bad the worst case scenario is in the grand scheme of your life. Sometimes, we give situations more power than they deserve. In most cases, a failure is not permanent.

    For example, when you start a new business, it’s bound to be a learning experience. You’ll make decisions that don’t pan out, but often that discomfort is temporary. You can change your strategy and rebound. Even in the worst case scenario, if the perceived failure led to the end of that business, it might be the launching point for something new.

    6. Have a Backup Plan

    It never hurts to have a backup plan. The last thing you want to do is scramble for a solution when the worst has happened. The old adage is solid wisdom:

    “Hope for the best, prepare for the worst.”

    Having a backup plan gives you more confidence to move forward and take calculated risks.

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    Perhaps you’ve applied for a grant to fund an initiative at work. In the worst-case scenario, if you don’t get the grant, are there other ways you could get the funds?

    There are usually multiple ways to tackle a problem, so having a backup is a great way to reduce anxiety about possible failure.

    7. Learn From Whatever Happens

    Things may not go the way you planned, but that doesn’t automatically mean you’ve failed. Learn from whatever arises.[10] Even a less than ideal situation can be a great opportunity to make changes and grow.

    “Sometimes you win, sometimes you learn.”

    Dig deep enough, and you’re bound to find the silver lining. When you’ve learned that “failure” is an opportunity for growth instead of a death sentence, you conquer the fear of failure.

    For more tips on how to overcome fear of failure, check out the video below:

    Final Thoughts

    To overcome fear of failure, we can start by figuring out where it comes from and reframing the way we feel about failure. When failure is a chance for growth, and you’ve looked at all possible outcomes, it’s easier to overcome fear.

    Stay positive, have a backup plan, and learn from whatever happens. Your failures will be sources of education and inspiration rather than humiliation.

    “I have not failed. I’ve just found 10,000 ways that won’t work.” -Thomas A. Edison

    Failures can be blessings in disguise. Go boldly in the direction of your dreams and long-term goals.

    More Tips for Conquering Fear

    Featured photo credit: Patrick Hendry via unsplash.com

    Reference

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