Starting a business isn’t easy, no matter how you slice it, and several entrepreneurial-based myths don’t make the decision to go solo any easier. We all have what it takes to open our own business, so don’t let the following myth discourage you from building a startup company.
7 Common Myths About Entrepreneurs Debunked
Becoming an entrepreneur may be one of the best decisions you could ever make as long as you’re informed. Here are 7 myths about entrepreneurship that need to be retired immediately.
1. Entrepreneurs Need a Lot of Money to Get Started
If you’ve ever researched how to start a business, you’re guaranteed to find a section about funding. After all, you need money to hire employees, conduct customer research, build a website, and demo your products. But, you don’t need thousands of dollars to get started.
The amount of money you need to start a business varies between industries. For example, a copywriter who already has a computer can build a solo agency for less than $1,000. Still, if you do need money, you have several options, like personal loans, crowdfunding, and investors.
2. Becoming an Entrepreneur is Riskier than Finding Employment
Entrepreneurship is seen as risky, and it is, but employment also comes with its own risks. 40% of Americans have been terminated or laid off from their job at least once, and it can take 3-6 months to find a new job. If you have no prior savings, a layoff can be earth-shattering.
By comparison, 65% of small businesses fail in the first 10 years, 50% in the first five, and 20% in the first year. However, as an entrepreneur, you have more control over your future. If you market effectively and pay attention to your cash flow, there’s a high possibility of success.
3. Entrepreneurs Need Business or Finance Degrees
Education helps in any field, so getting a degree can benefit you significantly if you plan to open a business. However, the internet has made it easier for people to access information, meaning you don’t need to have a business, finance, or any bachelor’s degree to start a company.
In fact, non-college graduates now make up the bulk of entrepreneurs at 56%, and this survey was conducted before the pandemic. If you plan on becoming an entrepreneur and you don’t want to go to college, save yourself the $50,000 student loan and invest it into your startup.
4. Entrepreneurs Must Have a Unique Idea
You don’t need to release a brand new product or cater to an unknown niche to become an entrepreneur. Copycat businesses are incredibly successful, even now. Think Indiegogo and Kickstarter, Google Home and Amazon Echo, FedEx and UPS, and Uber and Lyft.
In all of these examples, both companies cater to the exact same buyer persona and often compete for business, but that’s not necessarily a bad thing. It’s much easier to try to improve on an existing idea because you know the market and the blueprints are already there.
5. Entrepreneurs Are Only Motivated by Money
This is a bit of a bizarre myth for two reasons. For one, most people are under the impression that startups fail, so the possibility of making money should be considered slim based on that logic. For another, everyone is motivated by money. You wouldn’t be able to live otherwise.
Even still, most entrepreneurs aren’t motivated by money; they’re motivated by the feeling of personal achievement. When asked about finances, entrepreneurs stated they wanted financial stability, which means they want to make enough to live comfortably, not to become rich.
6. Entrepreneurs Don’t Have a Personal Life
This myth is the closest to a “fact” because most entrepreneurs don’t know how to manage their time when they start. Or, they’re juggling school, a full-time job, or family commitments while also building their business. However, long work hours don’t always equal a lack of social life.
You’ll still have time for your family, friends, and hobbies if you make time. And the truth is that you actually need a personal life in order to succeed, since you will not be motivated to work if you are not healthy and happy. Sure, you’ll get your business off the ground faster if you put more work into it, but you don’t have to do everything yourself. Find a business partner or ask for help from your family if you’re falling behind.
7. Entrepreneurs Are Young and/or Born, not “Made”
There are some things that make you a better athlete, like having longer legs, that you can’t control, but that doesn’t mean you can’t win marathons. With entrepreneurship, you aren’t even limited by your genetics. Just about anyone can start a business, regardless of age or ability.
John Pemberton invented Coca-Cola when he was 55, Ray Kroc started McDonald’s at 52, and Hardland Sanders started KFC at 65. The average age of an entrepreneur is 40 in the United States and 47 in the United Kingdom. Age doesn’t play as much of a factor as you think.
