Deciding to start your own business can be a scary, and intimidating experience, especially if it is our first time. Also, there are many different small business myths that might be enough to discourage any entrepreneur wanting to venture in today’s market. However, most of these myths are not really true but have managed to spread across the industry. So, we decided to tackle four small business myths in order to give you the extra push you might be needing.
First of all, we need to get rid of the idea that you need to make a huge investment in order to start your own business. There are many funding options available nowadays, and more than one will fit your situation. Also, it is said that small business owners must work in their companies 24/7, which isn’t healthy nor productive. Thinking that we can write every expense as a business one is a common misconception, too. Lastly, the idea of having a website and social media profiles will automatically give you new customers is another small business myth we need to debunk.
One of the most common small business myths is that you need to make a huge investment in order to get your start-up running. However, this isn’t necessarily true, as there are many different funding options available. Even when you do need to make an investment, it doesn’t have to be huge, and it doesn’t have to come from your pocket, either.
One of the first options you should consider is getting a Small Business Administration loan. The SBA works along with many different banks and lending agencies, and they are the ones who can provide the loan. Another quite useful option for financing your small business is crowdfunding. This way, you can start building a relation with your potential customers before you are completely operating.
While it is true that starting a small business consumes time and energy, but it shouldn’t take all your time. One thing is having the commitment and being in charge of your company, dealing with any number of unforeseen situations. However, being solely dedicated to managing your business will have a negative impact in both your health and your company.
You should prepare to work hard and long hours, but don’t work around the work. Otherwise, you will likely burn out before your company takes off, so give yourself some time off every week.
Another common misconception about small businesses is that we will be able to write off every single expense as a business one. When we are freelancers, running your own business does allow you to deduct a lot of expenses from your taxes. However, we should be careful in how truthful our report really is.
When we run our business from home, we can write off some household expenses such as rent or utilities. In order to do so, we must only include the portion that corresponds to our business. Also, don’t try to pass personal expenses as company ones, or we will receive an audit from the IRS.
One of the most common small business myths in the digital era is that all your business needs is a website and social media profiles. Even when these are really important tools nowadays, we must learn how to manage them first. Being able to build a brand and an online community with our customers is easier said than done. Nevertheless, once we learn how to effectively interact online, our business should be in the right path. Therefore, it is important to dedicate the resources that our digital presence deserves.