Myths to Avoid While Creating Startup Businesses in 2021
There are certain common-lingering myths about startups that might discourage you from starting your own business. Many of these myths are related to the challenges, notions, and facts involved in establishing or running a startup. Owing to these myths, brooding businessman hesitate in giving their thoughts and ideas a physical form. However, all these myths are not true.
Let’s take a look at some of the most common myths about startups that you should avoid in 2021 for entrepreneurs.
Myth 1: Businessman takes a lot of risks
Fact: Businessman takes risks. But that doesn’t mean that they take lots of risks or put themselves in high-risk circumstances all the time. They know how to take calculated risks. If you are not willing to take some risks, you will not get higher returns. Business tycoons might have some good or back luck over time, but they can’t rely on luck to run their business. You might have to take a risk that will not pay off, but do not worry about that. The key to persevering through mistakes is restricting your initial risk.
Myth 2: Entrepreneurs needs a lot of money before starting their business
Fact: According to several studies, investors and venture capital fund only one percent of all the startups. Yes, indeed you cannot start a business without any money, but getting venture capital is not the only solution. Some of the new or small business ideas in India involve applying for a personal loan, business loan, and asking family/friends who are willing to contribute money to their business. You can also opt for bootstrapping strategies which allow in maintaining full control of the startup strategies, avoids time delays, and energy spent in attracting investors as well as retaining maximum equity.
Myth 3: Startups cannot compete against big companies
Fact: Be aware that in the era of startups, actions speak louder than fancy ad campaigns. Your small or new business ideas involve understanding the requirements and niche of your firm. As a startup company, you will not experience the bureaucratic drama that is involved in big companies. This enhances your business agility and you can experiment with the personality of your brand. The two ways with which you can market your company are- establishing your startup for those individuals that fall under the required niche and building long-term relationships with your customers by creating brand awareness. You just need to be more quick and efficient to leave your competitors behind.
Myth 4: You need to be formally trained and educated to start a business
Fact: You don’t need to pursue a business or entrepreneurship course in order to set up a successful startup company. Businesspersons do not need a degree to fulfill their dreams of starting a business. According to a business survey report, many entrepreneurs do not have a college degree. This doesn’t mean that you should not study or go to college. It only proves that one does not need higher education to begin their startup company.
Myth 5: You require a detailed business plan for your startup company
Many entrepreneurs intend to create a perfect business plan. But nowadays markets are changing so rapidly that you don’t know how customers will react to your product or service. There are new technological advancements that might emerge which can significantly alter the business environment. Launch your product, obtain feedback, and move forward to continue your product and business plan.
Myth 6: Startups are only motivated by money
Generating profits is not the only aim for startup companies. Accomplishing a dream is one of the chief motivations of startup companies. Financial stability is their next aim. Financial stability does not mean you have to be wealthy. It means that you can meet your requirements. Leaving a legacy for one’s family and future generations is another motivational factor. Lack of motivation in their current workplace can also inspire people to leave and begin their startup business. Thus, money is not the only motivational factor.
Tips for the new entrepreneurs before starting a new business
-An entrepreneur should have a clear vision. He should be able to create the vision he desires to do in his business.
-Before starting any business, an entrepreneur should prepare a solid business plan, i.e. marketing strategies, microfinance for business, etc.
-An entrepreneur must be physically and mentally prepared for any predicament and should be able to handle it gracefully.
-The entrepreneur should hire people who fit in their culture and share their values.
-An entrepreneur should not stop learning. They can take a look at free or low-cost e-learning resources that are offered by the Hubspot Academy, Udemy, and other such online platforms.
Before starting your startup company, it is essential to understand the difference between startup myths and startup reality. Follow the new business ideas stated above and create a successful business.