Those that are new to entrepreneurship may have misconceptions on what it is all about. However, there is great need to know what myth is and what fact is so that success can come.
This is a look at the top ten myths that need to be dispelled:
- The first myth is that it takes much money to start. This is far from the truth because it is all about using the little resources to make the most out of it.
- Another myth that entrepreneurs need to do away with is that venture capitalists are a good place to go for start-up money. This source is suitable but to some ventures and people need to keep this in mind. This source is mainly suitable for people who start biotech or computer companies.
- Another common myth is that those who make it are those with rich backups. This could not be further from the truth because people who are not privileged continue to make it big in this sector even after starting from scratch with no special favors or advantages.
- Another one is that start-ups cannot be funded with debt. Unlike what many might think, the fact is that debt is more prevalent than equity. Therefore, for those with solid plans, it does not matter the source of finance provided the vision and the plan is clear for the future of the business.
- Some people go about thinking that banks do not lend to those who wish to start up businesses. This is not true because up to 16% of all financing comes from banks and those starting need to approach banks in the right way. Trade creditors are also known to finance start-ups and make up a bulk of financing.
- Another common myth or misconception is that those who start will do it in very attractive industries. This might seem to be the case but is not true at all. Many entrepreneurs have actually been seen to go to the worse industries there are. Statistics show that many will actually pick the areas they will most likely fail.
- Many actually believe that the talents and abilities of the entrepreneur have the power to ensure success unlike what the environment of the business is like. This is not true because the general factors will outweigh the qualifications of an entrepreneur and they have to look further than to talent to survive.
- Another myth is that all entrepreneurs are rich and have financial success. Even if they make good profits, this does not make them rich because there is uneven distribution of this wealth which might nullify the statement.
- Many entrepreneurs achieve the sales projections and attract investors to their start-ups. This statement is not true at all. From the hundreds of thousand who start up, only less that 200 will meet these sales projections that may be targeted to a million. In six years, only that number is able to reach here.
- Finally, many think that starting a business is easy. This is a myth and it should be known that it is difficult and getting it running will take a lot. Otherwise, most people who start give up along the way just because they do not meet their targets.