2 min read Starting your own business is extremely appealing for a lot of reasons.
Being your own boss, running things how you want to, and doing something you love are key reasons why people consider making the immense investment in time and money — and taking on the significant risk of failure. This risk can be minimized if you actually know what you’re getting yourself into.
Here are 5 common misconceptions of starting your own business with a dose of reality to clear up any confusion.
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If I have my own business I won’t have to work as much.
- That is completely false, especially when getting your idea off the ground and trying to make a profit. Expect longer hours, more tasks, and in all likelihood more headaches than when working under someone else. You can have staff, however, you still have to set them on the right course, deal with payroll, hiring, and management, etc.
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I’ll be able to set my own hours and create my own schedule.
- There is some truth to this statement, however, a business’ priorities lie with customers and clients. Your business has to be there for them, and as head of a business, you have to be there for your employees as well. In the mindset of being ready to assist at all times in any way necessary to keep running well. If you are looking at other business models an online-based business allows some more flexibility.
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It will be easy to attract investors and customers to my business.
- There’s a lot of competition out there for peoples’ dollars, whether it be from investors or customers. You have to appeal to both markets, and often, there is no such thing as an easy sell. Be prepared for some slow (and low on revenue) times and be prepared for the frequent “no”. To make yourself more attractive to investors and customers, just be prepared: have a polished, plan to present to potential investors and have an equally high-quality product available for potential customers and clients.
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The books will be easy.
- Taxes, payroll, and money management can be hard to understand. There are a lot of numbers to keep track of and (hopefully) a lot of money to be accounted for. Make it easier by getting an accountant and Human Resources personnel.
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Business owners are rich and someday I will be too.
- The reality is that many business owners are just scraping by, hoping to keep their business and personal finances just barely in the black. Sacrifices will be necessary until the business becomes profitable, and for many, never do. Starting your own business can be an incredibly rewarding and exciting venture, but it takes a lot of hard work and does not always end up the way you may think or wish for it to.
Feel free to try out our calculators and contact us if you would like to discuss your fundraise: https://tencapital.group/calculators/
Hall T. Martin is the founder and CEO of the TEN Capital Network. TEN Capital has been connecting startups with investors for over ten years. You can connect with Hall about fundraising, business growth, and emerging technologies via LinkedIn or email: hallmartin@tencapital.group
