4 myths about starting a small business

So you're looking to start a business; Congratulations! It's an exciting and hectic time, loaded with planning, dreaming up ideas, filling out forms, analyzing risk and doing research. Before you're too far along, there are some misconceptions out there when it comes to owning a business or starting out as an entrepreneur. Don't fall for these five myths.

1. Self-employment = More free time. When you become your own boss, you can end your days early, sleep in and go on PTO whenever you want because you don't need anyone's approval, right? Wrong. When you start a business, it needs your constant attention. Because you're self-employed, you don't have anyone to take over when you're off the clock. And speaking of clocks, there's not exactly a punch-out system. It's important to strike a balance, and as your business grows you'll likely add employees who can take on their own responsibilities, but regardless, owning a business is no easy feat.
2. You need to beat out the competition. It's natural to have a competitive nature, especially when it comes to business. After all, if a customer is spending their money somewhere else, it must mean they won't bring their dollars to you. Right? This isn't the right mindset to have, however. Unless you and a competitor are selling one identical niche product, or you're a top-secret tech company with a concept in development that can't be released, collaboration is often the better route. By networking with other small-business owners and even partnering up in some cases, you can bring in more patrons to both businesses.
3. Marketing isn't a primary concern. Marketing is often pushed to the side, especially in a business' early days. There are more important things to deal with — and certainly there is a lot to deal with. However, without marketing, customers won't find out about your business. You don't need to spend major dollars right off the bat if that's not in your budget, but at a minimum, you should send out press releases to local media publications and start a website and social media pages.
4. 90% of small businesses fail in the first year. Figures about business failures are thrown out in conversation constantly, but the good news is those people saying that 90%, 50% or 30% of small businesses going under in the first year are wrong. In fact, the figure is more like 20%, per Investopedia, which means that 80% of them stay afloat.

Don't fall for these false assumptions as you get started as an entrepreneur. The last myth to keep in mind is that nothing will ever go wrong. This is why it's important to have great legal representation as your company evolves. Contact the Law Offices of Donald W. Hudspeth, P.C., today to learn more about how to fully set yourself up for success in your growing venture.

Categorised in: Starting a Business in Arizona

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