Debunking 3 Myths About Starting a Small Business
I started my translation agency BudgetVertalingOnline over seven years ago. It was very exciting, but naturally, I had many questions. Starting a small business may seem daunting. Luckily, you will find that it is not all that bad. In this blog post, you will see the results of a recent small business survey. Also, it debunks three myths about starting one.
Aspiring entrepreneurs who are considering starting a small business may find encouragement in recent survey results from Kabbage. This survey is from the U.S., but I feel these results could apply to other countries as well. Kabbage polled 600 thriving small business owners and found that the majority of successful entrepreneurs got started with little cash and short run rates. Its survey also demystifies the cash flow obstacles many aspiring entrepreneurs may perceive as reasons for not starting a small business.
Below are three myths debunked by Aditya Narula that aspiring entrepreneurs should know about when starting and building their company.
1. Myth about starting a small business: You need a lot of money
One of the biggest perceived barriers to starting a company is the amount of capital required. In reality, many successful entrepreneurs get started with surprisingly small amounts of money. According to new data, fifty-eight percent of small businesses started with less than $25,000, and one-third of successful businesses started with less than $5,000. I can say I started with much less.
While the amount of capital required to get started may be lower than expected, managing cash flow is critical to growing a company. Instead of old bank statements and dated tax returns, many small business owners have begun using online lending platforms. They look at a business’ live performance data to approve funding. These innovations help small business owners who may not have long credit histories. They allow for faster and more flexible access to working capital.
2. Myth about starting a small business: Start one in the industry you know best
Forty-one percent of survey respondents started a business in an industry that was new to them. Despite this, eighty-two percent of respondents did not doubt they had the qualifications and experience to run a company successfully.
While confidence is key, try to avoid mistakes. Aspiring entrepreneurs should find a mentor or advisor in their industry who can help them, keep an eye on long-term goals, anticipate upcoming expenses, and give objective advice about cash flow issues. For those searching for a mentor, try connecting with industry contacts on LinkedIn or join a trade association.
3. Myth about starting a small business: Being a business owner means doing it all
Another common misconception is that business owners should know how to do and manage every aspect of operating a business.
According to the survey, the areas of business in which entrepreneurs had the least amount of experience when they started their company was financing/bookkeeping, legal/compliance, and marketing/advertising. To free up time that could be focused on bringing in new customers, hire consultants or freelancers to manage tasks that you are unfamiliar with or that are time-consuming.
Hire a professional
For instance, I let somebody else do my finances, and I have someone who builds and maintains my website.
Also, I am often hired to help out with the marketing part as I am a translator. If you wish to go abroad with your product or service, you have two choices when it comes to addressing the foreign market. You can type up something yourself, or you can have a professional translator do it. That is where I come in.
Small businesses can also benefit from using technology to automate different aspects of business operations. Technology platforms can help manage tasks like resource scheduling, inventory management, digital marketing, and customer service. Having the right tools in place can improve operational processes, reduce paperwork, increase efficiency, and even improve worker productivity. For instance, in What is the Best SEO Tool for Freelancers and Small Business Owners?, you can find several tools that help you improve your corporate website’s SEO.
It is not about starting a small business. It is about growing it.
To be honest, starting a small business is easy. Growing it and making it successful is the hardest part. The first thing you need is a strong corporate brand. In How to Reach Strong Corporate Branding, you will find the difference between corporate branding and product branding. Also, one of the things that could really set you apart nowadays is using video content. As you can read in How to Grow Your Business with Video, video is a powerful and cost-effective medium that you should add to your marketing mix ASAP.