Have you got that itch to start something, but can’t seem to get into the groove? I’m going to break down these 8 business myths around start-ups and help you get your groove back.
This is simply not true. Millions of small businesses worldwide have been started without a business plan. The action of starting the business is what matters. Once you’ve started and tested the concept you can develop a business plan to focus the strategy, share the vision with others and build a compelling case for accessing finance or partnerships. Don’t spend all your energy and months of writing and worrying developing the perfect business plan. Just jump! Find your first client and get started.
This is not true. Many businesses have been started at the kitchen table with a good idea, a laptop and perhaps a couple of friends for support. If this is your first business it’s unlikely you’ll get finance for your business, unless you have rich family or friends, so it is important to choose a business that requires little money to get started. Last month I wrote an article about starting a business with no money. Your first business will give you the ‘track record’ you need to raise capital for future growth. A word of warning here, even very experienced and successful entrepreneurs struggle to raise capital in early-stage start-ups. So unless you have a magical plan, best avoid a business model that requires this.
This is not true. All sorts and sizes and shapes of people start and run successful businesses. The only requirements are:
Get a client to test your idea
The courage to get going
The willingness to learn and grow
The energy to keep on pushing forward
You can learn and improve your business skills from a book, from others and from experience.
This is not true. A quick search of the internet will yield a plethora of stories about successful entrepreneurs, some still in primary school. My youngest daughter started her first business knitting scarves for teachers and parents while in Grade 5. The experience taught her that while she loved to serve others and loved the creativity of knitting, it wasn’t enough. Profit was necessary to keep her passion afloat – and there was not enough margin in the business model for that, so she closed the business. This practical lesson will serve her well when she starts another business one day. My advice is the younger you start your first venture, the better!
This is not true. The classic example is Colonel Sanders who started KFC at age 62! There are many success stories of older people who start businesses. I started Fetola in my late forties and I’m certainly not done yet! Late start-ups are a great opportunity to blend your wisdom and life experience with the energy and innovation of younger people – so jump in and enjoy the excitement!
This is not always true. I just chatted to Emily van der Walt, a young entrepreneur, aged “20 on the dot” who started a business selling ‘pre-owned’ clothes on Instagram. By her own admission she knew absolutely nothing about business, but had a product (old clothes belonging to herself and her friends). She spotted a need in the form of climate-aware young people in her Instagram network who wanted a new range of recycled clothes at a reduced price that didn’t impact the planet. Bam! Six months later the business is already a success and she has probably gained more value through action learning in the business than any university degree could provide!
This is not true. Whilst is might be easier to start something in a big town where there are people there are needs and where there are needs there are business possibilities. Yes, your town may be small, but ask around to find out what you and others need and then build a business around that market demand
One of the most delightful up and coming success stories in South Africa is Simply Bee – a natural product company started in the tiny town of Hopefield in Western Cape. If they can do it, you can do it!
This is 99.9% not true. The reality is that business success is less about the good idea and more about successfully putting the idea into action. Whilst there are a tiny, really miniscule number of inventors who have managed to sell a concept, don’t plan on this as your business model. Even in the case of the “please call me” inventor this case is still pending 20 years later! For most of us a business is successful and profitable because we put the idea into action and make a profit from doing this.
Last word: The one thing that all entrepreneurs have in common is the willingness to face the fear and do it anyway. So, start small and learn in bite size chunks, but most importantly get started. If you would like free business advice from an experienced adviser, contact Mentor Hotline. They will answer all your questions about start-ups.
Next in our Start a Business series: Get the heart right
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