10 Big Myths About Owning Your Own Business

“That woman has it easy, she has her own business.  She makes lots of money, is always going on trips and doesn’t have a worry.  She doesn’t have to put up with stupid bosses, coworkers and ridiculous company rules.  I’m good at cooking, I should open my own restaurant and then I can live like her!”

I’ve heard a lot of people say something very similar to that in the above paragraph.  An “outsiders” perception of owning and running your own business can be very different from reality.  Let’s look at a few common myths people believe about owning your own business.

1.  I’m great at what I do, so my business will be great.  Just because you are a fabulous cook, does not mean that you are cut out to run a restaurant.  Many feel that being an expert at their skill means that they could operate a business where they utilize that skill to make a profit. 

Although you may be really good at what you do, building a business takes a lot of different skill sets and all are equally important.  If you were to open a restaurant, like in the example, there is also the need to project and order the right food to be prepared, costs in setting up the restaurant are enormous, marketing, accounting, waiting on the customers, clean up, prepping, and building rapport with your patrons so they will return.  That’s a lot of work and certainly not something one person can do on their own, so now you must also hire and manage a staff.  This all adds up to a lot of different skills than just cooking.

2.  Passion will make it happen.  Passion is a valuable asset in running your own business.  It can certainly make it easier to put in the long hours, but it doesn’t always make keeping a level head when making business decisions.
3.  I’ll be my own boss.  In reality, your customer becomes your boss.  Although you must retain control of most situations, it will be meeting the needs of your customers that drives what you do.  In turn, your customers will also be the factor that you will use in managing your employees and implementing systems and policy.

4.  If I build it, they will come.  There are many factors involved in getting traffic to your door or your website.  Just because you are open for business, does not mean that everyone knows about it, or will take the time to stop by and sample your product or services.  Once your website it built, you must then work to maintain optimization and drive traffic to your site.  If you are a brick and mortar business, then you must work to attract the attention of your customers so they will come.

5.  I don’t need to market; this product/service will sell itself.  Even if you think you have the best thing after sliced bread, without a marketing plan and budget, you are setting yourself up for failure.  You must let people know about your product or service and how it will benefit them.  Without this, you have no customers.

6.  I’ll be able to have the time to do the things I want.  My first response to this is: “yeah, right!”  Although I have more freedom with my schedule and can make it to the dentist during the middle of the day, there are still numerous things that need to be done in my business on a daily basis.  The mentality of ‘working’ doesn’t end at 5:00 pm.  Being an entrepreneur become a way of life, not just a job, so you will find yourself working long hours and often late into the evening.
7.  I don’t plan on taking out a loan, so I don’t need a business plan.  The business plan is the first thing you should write.  Why? Because writing your business plan will force you to do a lot of research and will often uncover things you did not even know you need to know about.  The old saying, “you only know, what you know,” is never truer than when opening a business.  Your business plan will also become your map and guide to keep you focused on the goals you wish to reach.  This way, when an opportunity comes along, you can determine whether it will help you gain further ground toward your goals, or take you on a detour that wastes your energy and resources.
8.  I’ll save money because I can claim everything as a tax deduction.  Nothing is further from the truth!  It is very important to keep personal expenses separate from those of your business unless you are interested in working through an IRS audit.  Ask yourself this simple question: “Would I have to incur this expense if I didn’t own my business?”  If your answer is no, then the expense will probably be tax deductable.  As with anything relating to taxes, consult with your accounting expert to determine whether it is valid or not.
9.  I’ll be profitable in a few months.  This is highly unlikely, but not impossible.  Not meaning to sound pessimistic, the average small business doesn’t start showing a profit for the first two to three years.  Of course, keeping your startup cost low will help to speed the process along.

10.  It’s too hard.  Yes, owning and operating your own business takes a lot of work, but, and this is a big one, it is the most rewarding way to earn a living.  I have met the most amazing people, learned so much and I keep on learning, so it provides for personal growth as well.   Working in a dead end job proved to be too hard for me, I am much happier and more fulfilled helping others see use their talents and grow.  It’s up to you, but I say come on in, the water’s fine!