There are plenty of small business myths which often make SMBs misunderstood. It’s time to set things straight and debunk the myths – at least some of the most popular ones.
We have curated some of the most popular myths from trusted small business resources – I’m sure some will surprise you. Without further adieu, here they are:
20 small business myths – debunked and demystified
The following are from “Why small business owners are like distracted drivers” written by Ty Kiisel, a small business and work management evangelist…
Myth No. 1: If you want it done right, you have to do it yourself
If you live by this mantra, it’s a self-fulfilling prophecy – and you won’t like the results. Doing it all alone will distract you from your true role as a business owner: Capturing more market share, motivating your employees and facilitating an environment where people could perform at their best.
Myth No. 2: I know more about what my customers need than they do
How many times are we distracted by trying to force what we think is a great solution into an application it really isn’t suited for? Wouldn’t it be time better spent focused on understanding our customers’ challenges and then trying to help them find a solution?
Myth No. 3: My employees are lazy
Although this might be true, it’s probably your fault. Focusing too much attention on how much time someone spends at the office is not the way to do it – you need to facilitate so people will perform at their best.
Myth No. 4: I can do your job better than you can
Being the smartest guy in the office won’t help you as business owner. You need to leverage everyone’s skills to achieve positive results. Chances are, you will achieve greater success than you would have been able to do alone.
The following are from “Small Business Myths Debunked“…
Myth No. 5: The government and SBA provides grants for startups
The federal government, as well as the Small Business Adminisration (SBA,) does not have a grant that gives money directly to small businesses. However, there are indeed loans and financing programs available for people to start a business.
Myth No. 6: Starting a business, you’ll have more time to spend with friends and family
Starting your own business is a major time commitment. You could make your own hours, but that doesn’t mean you have more free time starting a business than working for a boss.
Myth No. 7: You can write all of your expenses off
Don’t try to write off personal purchases as business expenses, unless you want to get audited by the Government. Keep your personal expenses strictly yours.
Myth No. 8: You can pay yourself whenever you want
“Paying yourself first” doesn’t apply in business. You need to spend your money for marketing, operational expenses and overhead first – to keep your business afloat, to the least. In fact, on startup phase you might not getting yourself paid for 1-2 years.
Myth No. 9: You’re business should be profitable in six months
Well, you could expect that, but be aware that not all businesses are created equal. Depending on many factors, such as location, local buying power, business niche, economic situation, etc. going beyond your break-even point can take you 6 months or 2 years – or even more.
The following are from “Small Business Myth-Busters” written by Dave Everhart, Deputy Director for the Nevada District of the US Small Business Administration and an award-winning small business owner and entrepreneur…
Myth No. 10: I don’t need a written business plan – I have everything in my head
Whether you like it or not, you need a business plan in written form. It’s a good guide for you not to lose focus. It is also mandatory if the business is seeking a business loan or status.
Myth No. 11: I can start a business and get a loan with no money down
Lending institutions will require that you have some of your own capital invested in your startup. Why? Because having your own money invested means you are serious about your business, and will most probably have lower default rates on business loans.
Myth No. 12: I need to buy a building to house my business
The last thing a new business needs is to take on a heavy overhead burden which will drive up costs and lower profits. Startup in your garage, work from home. Grow as you need it.
Myth No. 13: I’m comfortable with numbers; I can do my own bookkeeping and payroll
It’s great if you can work with numbers, but in reality, even a very small business requires precise and lawful bookkeeping.
The following are from “Busting The 10 Biggest Small Business Myths” written by Barry Moltz, a small business consultant, author and speaker…
Myth No. 14: The Customer Is Always Right
If the customer was always right, every company would be out of business!
Myth No. 15: Build it, and they will come
Stop dreaming! Just because a founder builds it does not mean customers will line up to buy it.
Myth No. 16: Sales is the most important number
Nonsense! In measuring financial performance, sales are vanity, cash flow is sanity.
Myth No. 17: Team work is about building consensus
Leadership is about directing your business team: As a business owner, you set the direction and the team needs to be able to teamwork to accomplish that objective.
Myth No. 18: The financial numbers can be outsourced
No they can’t! Financial statements are the company’s score card. You need to keep and review it – on regular basis.
Myth No. 19: Customers only care about low prices
Since most things are a commodity, small business owners will not be successful competing on price. They need to focus on the value their solution, solving customer’s problems.
Myth No. 20: Be active on all social networks
The truth is that social media can be one, single major black hole to your business, sucking the productivity – and resources – out of your business team. Focus on the places where your customers are hanging out; don’t spread yourself to thin.
If you have more small business myths to debunk, please share yours with us!
Photo credit: BRC24 Studio via photopin cc
