Do you wonder about all the contradictory information you hear about owning and operating a business? Unfortunately, there are dozens of common myths, misconceptions, falsehoods, and urban legends floating around about entrepreneurship. Many of them are based on ignorance and not willful deceit. However, since the dawn of the computer age, independent business ownership has grown, exponentially. One can find that people who are not owners or entrepreneurs, picked up all sorts of misinformation about what it’s really like to run a small company. Perhaps, the most common ground is that failure torments the independent owners. Even though the unit of information is true, this pernicious little factoid refuses to take the corner.
What’s the antidote to so much falsity and incorrect information? Facts are the only cure. That’s why it’s crucial to arm yourself with answers before heading into the exciting, challenging, and potentially profitable world of entrepreneurship. It’s reassuring to know that most small companies survive, a college degree can vastly improve the chances for success, obtaining commercial credit is not impossible, and very few independent owners become workaholics.
Likewise, keep in mind that the 2020s are, in fact, turning out to be a golden age for sole proprietors, that outsourcing can keep you from working too hard, and that tax rates are not as burdensome as many folks in the financial media make them out to be. Finally, if you’re thinking about starting a nonprofit, don’t assume that your earnings will be dismal. Most nonprofit founders receive excellent compensation. The main thing for prospective owners is to avoid falling into the trap of believing every negative thing they hear about the founding, starting, and running of a commercial enterprise. Here are the most common myths going around, along with the corrected version of each one.
Entrepreneurs Don’t Need Diplomas
The reality is that it’s essential to earn and finance a college degree. Purveyors of this myth love to tell you about isolated cases of people they know who started companies but had no or very little formal education. In the real world, startup owners who hold college diplomas outperform those who don’t by a lot. Fortunately, if you are lacking a degree right now, it’s easy to apply for a student loan to pay for the related expenses of attending school and earning a diploma.
Most Small Businesses Lose Money
This truth of this particular form of falsity is known as a half-truth. Yes, most startups do lose money, but only during the initial phase of operations. Even giant, famously successful entities like IBM and Microsoft were money losers during their first months of existence. The truth of the matter is that well-planned organizations that are overseen by hard-working founders, usually, earn a profit after about six months of operation. Having a detailed business plan in place before you open the doors is perhaps the single most important factor in long-term profitability.
It’s Almost Impossible to Obtain Commercial Credit
The fact check is that in the digital age, entrepreneurs of all sizes and types are finding it much easier to get a company credit card than ever before. A generation ago, it was indeed a significant challenge for all, but the well-heeled to snag a commercial card they could charge expenses on. Today, as long as you have good personal credit, maintain savings and checking accounts in the organization’s name, and regularly buy supplies or services from one or more vendors, you can obtain credit for your organization quite easily.
Entrepreneurs are Workaholics
It’s true that most independent businesspeople are anything but overworking automatons. Consider that a large percentage of indie operators left the private industry to get away from structured routines and mandatory 9-5 schedules. Yes, owners have skin in the game in terms of their own capital and work constantly to increase brand awareness but few spend more than 45 hours per week at their chosen profession on actual tasks and projects.
The Days of Sole Proprietorships are Over
The honest truth is if anything, the 2020s are a glorious age of sole ownership. The COVID pandemic puts an end to, all and sundry doubts about work-from-home entrepreneurs could financially survive. Once, millions of workers in every conceivable industry began doing their jobs from home, the idea of independent workers making their own way with online companies became a widespread reality.
Doing Everything In-House is a Smart Way to Operate
On the contrary, knowing how and what to deploy is the key to building an efficient work schedule. It’s tempting to think that you can save money by just doing it yourself. But that approach is highly inefficient. The wise strategy is to focus on doing what you do the best and leaving specialty chores, like accounting and legal issues, to professionals. Keep in mind that working long hours during the first few months of an entity’s existence or laboring on weekends during a busy season is not the same as being a workaholic. Conversely, a large number of sole owners find it difficult to build a structured schedule and stick to it.
Taxes Will Eat You Alive
Definitely, no one likes paying taxes, but they pose no relevant threat to entrepreneurs. Taxes are a way of life and the average owner files and pay four times per year. There are costs associated with keeping records and preparing the returns, but they are not substantial enough to eat into profits. Likewise, tax rates on small for-profit organizations are not so high as to pose a significant obstacle to financial success.
Entrepreneurship pours in much confidence and self-reinforcing within an individual but while in the sphere of the businesses, a lot of conjectures might hit the waves of the profits. So, in the business empire, the best way to escape from the wrong end of the stick is to clip your methods to the productive factoids rather than infringing the real facts upon operating a business. Before starting the journey of becoming a business tycoon, the juvenile entrepreneurs must study the ongoing digital scrubs that would help them discern the rights and the wrongs, also, keep examing the implications of the celebrated companies of this era to lay ahead of the downfall and dig deep into the business profiteers to discover perfect plans or guide to the business management.