Starting a business has its challenges, but it’s important to not let misconceptions stop you from achieving your goal of starting your own business and becoming the author of your own destiny. Because after all, if you never start, you will never know just how successful you could be as the proud owner of your own small business, built from the ground it by you and you alone.
So, lets dig into some of the most common entrepreneur misconceptions and start-up myths that aspiring small business owners in every industry may encounter. We will also examine how you can squash these misconceptions and offer up some handy small business owners tips that you may consider as you continue to pursue the dream of becoming the owner of your very own small business. We will also cover off how business insurance can reduce your risk and help keep your business keeping on, and on.
1. You don’t need a business plan
Many people have misconceptions when it comes to starting a new business. The most common misconception is that you do not need to create a formal business strategy. This is easy to understand — who has the time to do more paperwork when they’re trying keep everything running as efficiently as possible. However, it’s a bad idea to skip the planning phase. You can end up wasting time and money.
It’s worth noting that many forms of business plans have one thing in common – they help business owners and entrepreneurs to visualise where their company is headed over time.
Recommended reading: How to develop a business continuity plan
2. You can rely on your financing
Learning how to run a business before seeking financing is considered essential. There are two common financial mistakes that can be easy to make. These include relying too much on financing, and not having enough of your own personal money invested in the business.
This can lead to an over-reliance on loans, which can become problematic if your business goes under or runs into other types of trouble that requires cash to reverse.
3. You will have to choose between growing your business and having a personal life
You will not have time to personally handle every single detail in your business. After all, you are now the owner of your own company. That means you will have to balance running your business with everything else that is going on. You may well not be able to handle everything by yourself. And that’s okay, so don’t be afraid to seek help where help is needed help. There’s certainly no shame in it.
Recommended reading: Work-life balance: How to work smart and stress less
4. Your staff will adopt your work ethic
As an entrepreneur and ambitious business owner, you will very rarely have someone telling you when it’s time to call it a day. As such, chances are you will keep working if you haven’t set boundaries for yourself.
That said, you don’t want to fall into the trap of putting unrealistic expectations on yourself or on your team. This is certainly something to avoid; if you fail to do so, your expectations will be unrealistic, and ultimately, people won’t want to work for you.
5. You must compare your business to your competitors
You are a new business competing against established brands, many of which will likely be household names with your target audience, while your business will be seen as the new kid on the block.
Given that, it’s important to narrow in on what makes you unique and slowly carve out a market for your products or services. At this stage, comparisons with the competition are unproductive and could lead to jealousy, negativity, and a sense in self-doubt.
Instead of comparing your company to other companies, focus on your business goals and how you can achieve them effectively. You can learn from others, but don’t simply try to copy their success; it’s not likely that someone else’s approach will work exactly as well for you as it did for them in their industry.
6. There is no room for error
As a new small business owner, it’s easy to feel like you have to carry the heavy burden of responsibility squarely on your broad shoulders. But remember that everyone is allowed to make mistakes; it’s all part of the learning experience. The important thing is to learn from errors, so you may avoid them moving forward. If you don’t make any mistakes, you’re either not trying hard enough, or are playing it too safe and may have lost your ability to think creatively and independently, which can lead to a whole other set of challenges.
Remember that mistakes are part of the process. They can teach you valuable lessons about yourself, your product, your customer service, your customers and your competition. All of that can be very valuable information for any entrepreneur building their own business.
7. Taking a risk is too risky for new business owners
Not making decisions based on risk can mean missing out on significant opportunities. Fear is why many people don’t start their own business in the first place. When you can overcome your fears and take calculated risks that align with your values and goals as an individual and a business owner, your business will do more than just survive; it will thrive.
Remember that there are many great business ideas and opportunities out there just begging to be snatched up by creative and ambitious entrepreneurs just like you. Which one will you choose?
How BizCover helps entrepreneurs go the distance
Are you a first-time business owner, a serial entrepreneur, or a small business veteran who has owned and sold several businesses over the years, you will likely be aware that a key part of business ownership is reducing the risk to your business.
At BizCover we make comparing business insurance quotes easy by making it fast and paperwork-free. Compare competitive business insurance quotes online from Australia’s leading insurers, buy insurance for your business online in minutes, and save on business insurance today. Learn more about insurance for your business or give us a bell on 1300 920 875 to chat about your business insurance options.
