While starting a business, we hear a lot of conventional wisdom floating about entrepreneurship that is just simply wrong. We have compiled a list of some of the worst offenders that affect business owners. There are so many assumptions around new businesses that have been proved to be completely wrong, new business owners should keep a note if they are willing to succeed.

 

New business owners should watch out for specific myths circulating, that most still believe. The below list talks of some of the myths vs the truths when starting a new business and shatter the misconceptions to get started with your new business.

 

1. Founders are their own bosses.

 

While it is true that business owners have the flexibility of choosing their work hours, they are always answerable to someone. From members of the board to the investors to the real boss- the customers, founders are answerable as they are not the ones keeping the business lights on, it is the investors and the customer. Technically, the founder is free to do anything but eventually like any other employee, your boss- the customers are going to fire you.

 

2. Get rich by starting a business.

 

Profitability is key for the sustainability of a new business. There are many founders who claim that the main motivation for setting up a business is for financial gains and to achieve financial stability and independence. Well, we hate to break it but there are several other less risky ways of achieving financial independence. Becoming an entrepreneur is much more than making profits off the business. It is about persistence and dedication to growing the business. The profits are just your rewards for enduring this hard.

 

3. Founders have a lot of free time as the employees take care of the operations.

 

Though this can be true in the later stages of an established business, more than often founders have to take up different roles and invest their time. Contrary to popular belief, the founder is the one to put up all the hard work. With hours of internet research, meetings, schedules and formatting investor decks, founders simply make better returns from their time.

 

4. Keep the idea secret until it is ready for launch.

 

While this can be true for big multinationals, smaller businesses should not fall into it. Ideas can be the most overvalued product in the business world. Though everyone has ideas, most of them haven�t even made them a dime. What counts the most is the tireless hustle and meticulous execution that any idea needs to succeed.

 

5. Starting a new business is risky

 

Starting with any new venture is risky and a new business is not any different. In order to succeed, an entrepreneur must be of a risk averse nature who are willing to take on calculated risks and make smaller bets. This is a great idea for start-ups rather than sticking to a single business decision. Smaller bets and combatting lesser losses will prepare you to take more calculated bets in the future.

 

6. A launch conference is the best way to introduce your new business.

 

Launch events and conferences are quite useful in instilling the initial hype. This initial buzz will work towards building you an initial base of users which will work to grow the network. However, in most cases, these launch events are just for vanity and rarely lead to real business results in the long run.

 

There are plenty of new businesses that have failed to gain a single paying customer from a launch event. Therefore, rather than vanity, business owners should work towards refining and innovating their products and services.

 

7. Every business has the same problem.

 

While it is quite common for new businesses to pick up the pace, not every business has the same shortcoming. When we fail at something it is quite easy to believe that others will too.

 

Just because your business has a problem, not every other business suffers from the same problem. Realizing this is an eye-opener for any business and identifying the problem is one step forward towards solving it.

 

8. Businesses should raise money whenever they can.

 

Just because there is a lucrative investment on the table, does not mean you should take it. Investors invest with the hope of a better return. If your business is not ready for such a commitment to the investor, it is a good idea to leave those funds behind. Failing to deliver on returns can adversely affect the reputation of your business among future potential investors.

 

Sometimes, it is this pressure that kills a business. Businesses should only raise money when there is an active need of doing so and ensure the promised returns to the investors are kept to the word to encourage further investments in the future.

 

9. Founder dilution is not a problem.

 

There are several founders, especially new ones who are looking to own a small piece of a large business rather than owning a big part of a small business. The chances of a business growing to the stature where small parts yield great value is quite less in comparison to the chances of a business growing enough to make the most of it valuable.

 

Be realistic about your business. Keep in mind every time you dilute the ownership of your business the more you divest yourself from the success of your business.

 

10. Spamming social media users is a great way of amplifying sales.

 

Several new businesses are seen spamming the home feed of their followers with useless junk. It is quite common for new businesses to hire a new intern and give them a full time job of posting on social media to pitch their products or services.

 

This strategy works absolutely zero times. Annoyed, users might report or block your posts altogether. You will need to grab their attention by creating value and not spamming them with thousands of newsletters and ads every day.

 

11. Renting an office.

 

There are several things a startup needs in the early days and office is surely not one of them. With the innovation and spread of the internet and technology, there are several ways of getting the work done.

 

Hire remote workers, work from your home or anything that does not tie you up with a monthly rental commitment. Start building your business with remote workers and only invest in renting an office only when you are comfortable with the expenses.

 

12. You only need technical workers at the start.

 

If you have a small team of a handful of members and all of them are developers or other technical professionals, you are absolutely missing out on a lot. If you solely focus on the development, there are a lot of areas that will require improvement.

 

Customer support, human resource, marketing professionals, copywriters, editors etc are all part of a comprehensive business structure that equally helps in the growth of your business.

 

13. Everything is about the product or service.

 

While an acute involvement and refinement of the product or service are necessary to provide value to the customers, focussing solely on it won�t cut it. It is the business that wins, not the product.

 

As mentioned in the previous point, there are several departments that you should work to improve if you are looking to grow your business as a whole, just like well-oiled parts make a machine function smoothly.

 

14. Worry about the money later.

 

This is true for a firm that has secured millions and has years of runway. New businesses can�t afford to court customers if they don�t have an idea of making money. One of the first things to secure while starting a business is investments and you will need to figure it out if you are actually going to do business.

 

15. You cannot afford the best talents.

 

Just because you are not a multinational corporation, does not mean you can have top talents working for you. There are tons of talented professionals who are not motivated by money rather by the thrill of working and delivering quality. Create a rich work environment where they can enjoy working and try offering them better benefits than other big firms can�t simply offer.

 

Every business takes dedication and persistence to grow. And therefore, entrepreneurs should be ready to face the challenges that come their way. For a simpler way of starting with a new business, SmartSchool Education is offering its franchises to aspiring business owners and is helping individuals start their own business and provide maximum help in starting a business.

 

This gives the owners a head start while starting their business as with the franchise model, business owners will have access to the huge customer base of SmartSchool Education saving them much on marketing and reaching out programs. The franchise model also offers a very low barrier to entry and promises hefty returns of 2 to 10 lakhs every month. With SmartSchool Education, business owners now have a reliable and convenient way of entering the booming EdTech industry and become a part of this online revolution.

 

Read More- Profitable Business in India: Launch Your Own Business In EdTech Sector

 

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