Starting your own business is never been easy. If this is your first rodeo, be careful to avoid the common pitfalls, most of which arise out of believing in one or more of the startup myths that seem to always be floating around in the media. Chief among the myths is that you don’t need any help and will do just fine by jumping into the venture without much preparation at all. There are more, and the best way to dispel them is to deal with each one head-on. Why not be careful when your money, time, and reputation are at stake?
I Don’t Need Any Advice
The truth is that nearly everyone does. Consider consulting an attorney who specializes in startups or a business consultant who does the same? Your cost for this kind of invaluable advice shouldn’t be more than a couple of hundred dollars, but it’s money well spent. Some entrepreneurs even hire financial planners to help them with the financing of the venture, but there’s no need to take that step if you’re willing to make a detailed financial plan on your own.
Early Profits Will Finance the Business
Few startups see profits until they’ve been in operation for several months. The wise way to approach financing is to save money on your personal monthly expenses first. That way, you’ll be ready and able to free up some extra cash to subsidize the new venture. If you currently have multiple student loans, for instance, you can save a significant amount of money just by consolidating them into a single payment. Working through a private lender is the best way to go because you’ll not only get a chance at more competitive interest rates but will be better able to keep track of monthly payments when there’s just one loan agreement to attend to.
I’m Unique, and Don’t Need to Study the Competition
No one is unique, and unless you’re the second coming of Thomas Edison, someone has already done what you’re planning to do. Don’t let ego get the better of you. For example, even if you invent a one-of-a-kind computer app, there will still be competitors. Once your product is on the market, others might try to copy or emulate it, and you could be up against major corporations who have the resources to make your once-unique product faster and better than you ever thought possible. Don’t fall into the uniqueness trap. Instead, do market research before you open the doors. Know who the local, national, and international companies are that are in your line of work. Assess the situation carefully, and be ready to compete.
I Can Do It All
You’ll likely have to outsource at least a few tasks. But that’s a good thing because it means you can focus on whatever it is you do best. A large majority of new entrepreneurs look for hired help, in the form of outsourced freelance help, for chores like IT security, payroll, tax accounting, and legal services.