When it comes to startups, there are so many things that revolve around in circles. Most of these are related to notions, challenges, and facts about setting up or running a business.
These myths are the reason why lots of brooding entrepreneurs hesitate to work on their thoughts and ideas. Then there are people who think with a great idea, they can reach the unicorn status and make an enormous amount of money. Sure this can happen but not always. With so many startup success stories out there, it is hard to figure out what is true and what is not.
Before feeding your brain wrong ideas about startups, let’s clear out the most common myths.
Myth #1: A Shiny New Idea Is All You Need
Yes, having an innovative idea matters but that alone is not enough. Also, you don’t always have to create something new. Take the example of Facebook. It was not the first social media site out there.
You don’t have to always be the first one to come up with an idea. It’s actually more about providing value. Having an idea is just a small part of success. As a startup, you have to go beyond the idea.
Myth #2: You Can’t Start Without a Detailed Business Plan
It’s true that you need a business plan for direction but some entrepreneurs obsess over it too much. In fact, some of them waste months creating a perfect business plan.
First things first, there is no such thing as a perfect business plan. Markets these days are changing so quickly. You cannot always be sure how a customer will react to your product or service. It’s important to go for an online marketing agency for your services like Albany Internet Marketing for better decision making and results. Even new technology can change the whole scenario for your business.
Don’t paralyze yourself with the desire to make a perfect product before even releasing it. Don’t try to predict every single detail either. Focus on developing a lean startup methodology instead. As soon as you launch, you can continue to improve your product and business plan.
Myth #3: Being Your Own Boss Means You Can Work on Your Own Terms
Being your own boss is not as easy as many of us imagine it to be. Not only you have to come up with an idea but implement it too. Then you have to gather funds, hire people and make sure your venture is compliant. The list of responsibilities is endless. You might even have to face situations you weren’t prepared for.
It is advised to surround yourself with coaches and mentors to help you meet the challenges. Be open to accepting outside perspective from people who come from various backgrounds. At times, you might not have a clue what you are doing. In that case, don’t be afraid to reach out for help.
Myth #4: Passion Alone Is Enough to Succeed
You must have heard this a lot – entrepreneurs must be passionate about the business idea. But passion alone is not a driving factor to success. Being overly passionate often clouds your judgment regarding your own business. This may cause you to push your problems under the carpet. This is fatal for every startup.
You can take your business to success if you combine passion with your entrepreneurial skills and product quality. What can be a better example of this than Airbnb? When the founders launched their website, they couldn’t pay their rent themselves. They turned their loft into bed and breakfast. They were able to raise $119 million in capital for their venture. Now, Airbnb has its lodging in 192 countries across the world.
Myth #5: Being an Entrepreneur Is Easy
It’s one of the biggest misconceptions regarding startups. No, running a business is never a piece of cake. When people see great entrepreneurs like Elon Musk, Erric Ravi, they assume they are living a stress-free life since they are making loads of money. The reality says otherwise.
The truth is, you have to work extremely hard to actually enjoy the fruits of your labor. Since there is so much glamour attached to becoming an entrepreneur, lots of newbies think it’s easy to run a business.
Myth #6: All Startups Need a Large Amount of Capital to Start Off
Lots of people with great ideas haven’t been able to peruse their dreams because they believe that they can’t start without capital. You don’t always need a significant amount of funding to start. Instead, you need to adapt to bootstrapping. It lets you maintain full control of your startup strategies and attract the right investors to your business.
Myth #7: PR Activities Can Cost You a Lot of Money
As a startup, you must have a budget set for PR activities. This could add to your success. These days, so many startups are all over the market. Without PR, you cannot convince customers to show interest in your business. However, PR does not always have to cost you a fortune. There are so many ways to get people to use your product or service and get a review in exchange.
Myth #8: It’s Impossible for a Startup to Compete Against Giant Companies
It is certainly difficult for a startup to compete against the competition that’s already out there. It is not impossible though. Don’t forget that those companies have been in business for years and they have established their grounds after hard work. So can you. Instead of worrying about how difficult it is, focus on understanding the niche of your business.
Myth #9: Having One Huge Customer Is Enough
Not all startups get the opportunity to land on a giant customer as soon as they start out. If you are lucky enough to find one, never rely on them alone. If you dedicate all your time and resources to meet the wants and needs of your large client, you will end up ignoring other customers who could also bring potential business.
Myth #10: Your Best Friend Is Also Your Best Co-Founder
This is one of the worst things you could actually believe. It’s recommended to watch the movie “The Social Network” and see how things worked out for friends who founded Facebook together. You will gain a lot of insight.
Even people you think you know act different in their personal and business lives. It’s not necessary that your friends appreciate how professional you are at work. In order to determine if your friend can make a good co-founder, you must evaluate their business personality.
Usually, this is how it starts. In the beginning, you are best friends and you cannot imagine running the business any other way. After a few years, the friendship toasts. This happens when you have different beliefs and different expectations.
Myth #11: You Need a Nice Office for Your Startup
Who doesn’t dream of having a huge office with ping pong tables, meals, game room and more? But it is not wise to spend money on setting up a lavish office. Instead, focus on developing a good company culture. In the beginning, focus on the office basics and then as your business expands, you can invest some money in a nice office too. There are some startups that have ditched office altogether. They have remote teams located in different parts of the world. This could save you overhead costs big time.
Myth #12: Working Your Own Hours Means You Will Have More Time at Hand
Sorry to break the news but that’s not true. Being your own boss does not mean you get to work on your own hours. In fact, you are the one who has to work harder than anyone else. And you have to be present all the time. You might also have to give up on the idea of work-life balance. You might not be able to give more time to your family because your business is your family now. No wonder it is important for your family to support your passion.
You might have to be on the road more than often, come home late or attend quick meetings on the weekend. These are the perks you sign up for when you start your business.
Myth 13: Your Product Will Sell For Sure
Just because you think your product is great, it does not mean people are going to buy it for sure. There could be so many businesses in the market selling products similar to yours. It’s extremely difficult for a startup to compete against each of them.
Your product will only sell if its quality is high. But don’t forget that it’s important to check the market before preparing to launch it. Then, you have to work on arranging marketing and sales channels to ensure your product reaches its intended audience.
Myth 14: Fail Fast and Fail Often
This has, in fact, become a mantra in the tech hubs across the world. But think about it, why should you start your business if your plan is to fail? There is no harm in developing an exit strategy. But never set yourself up to lose. No doubt you learn from your mistakes but those mistakes should not be big enough to shut down your business. Just because all startups have this trendy approach, doesn’t mean you must too. Instead, follow a realistic approach.
Myth 15: Build It up and People Will Come
Not really. A great idea cannot be launched successfully without the right people. You will have to put equal effort into finding talented people to join your bandwagon.
It’s always better to know the myths when you are about to enter the unchartered territories of starting a business. Like it’s said about live trading – don’t follow the crowd, think for yourself. With challenges come myths. It turns out people have a lot of wrong conceptions about starting a new business just like CFD stocks.