There are certain ideas and notions about entrepreneurs that may discourage you from starting your own business.
You are watching: Which of the following is not one of the five common myths about entrepreneurs?
These myths aren’t necessarily all true.
Furthermore, there are some theories about business owners that might encourage you to create a startup company.
Some of these are myths as well.
I want to clear up any misconceptions you might have about entrepreneurship.
We’ll go through the top 10 most common myths about entrepreneurs.
The information I’ll give you can help you determine if you’re an employee or an entrepreneur.
There’s nothing wrong with being an employee.
Personally, I find entrepreneurship more rewarding – but it’s not for everyone.
Being an entrepreneur takes commitment.
Once you start your business, it takes just as much effort to keep up and running.
You’ll need to learn different strategies like how to use relationship marketing to connect with your customers.
If you’re on the fence about building a startup company, take a look at some of the myths and misconceptions about entrepreneurs.
Then you can make a more informed decision about your future.
Myth #1: Entrepreneurs don’t have a personal life
Lots of people think that entrepreneurs work 24 hours a day, 365 days a year.
Working nonstop means that you won’t have time for your family, friends, and leisure activities.
While it’s true that entrepreneurship can take grueling hours and commitment, it’s not true that you can’t have a personal life.
Part of being your own boss means that you can schedule your own hours – to some extent.
I’m not saying you can take time off whenever you want, but there’s still enough time for family and social activities.
One of the keys to being a successful entrepreneur is mastering your time management skills.
If you can establish a proper working routine, you won’t have trouble finding free time.
Sure, it can be overwhelming when you have 100 things on your to-do list that need to get done.
But you can’t do everything at once – you can only do one thing at a time.
Stick to your schedule.
Don’t worry about tasks that you’re not focusing on at the exact moment.
Entrepreneurs need to limit multitasking.
Multitasking reduces productivity.
So, how do you limit multitasking and increase productivity?Schedule specific times to check and answer emailsPrioritize your to-do listPut your phone on silentGet off social media (for personal use)
These are a few tips to get started.
Answering calls and emails while you’re working on a task is not an efficient use of your time.
Instead, stick to your to-do list.
Make sure you’re working on the most important tasks first.
Don’t waste time on social media – unless of course, it’s business related.
You shouldn’t be uploading old pictures of yourself from high school or vacation photos from last winter to your personal social media pages while you’re on the job.
Get back to work.
Entrepreneurs who can master their time management skills will have plenty of time for a personal life.
Myth #2: Entrepreneurs take lots of risks
Entrepreneurs take risks.
With that said, they don’t necessarily take lots of risks or put themselves in high-risk situations all the time.
Are there risks associated with starting and running your own business?
Entrepreneurs learn how to take calculated risks.
It’s all about balancing the risk and reward.
You won’t have much luck getting high returns if you’re not willing to take some risks.
If there weren’t any risk – everybody would be doing it.
Entrepreneurs aren’t gamblers. Gambling implies there’s luck involved.
Sure – entrepreneurs may have some good or back luck over time.
But ultimately, you can’t rely on luck to run your business.
Learn from your mistakes.
Sometimes you’ll take a risk that doesn’t pay off.
It’s bound to happen.
Not every idea will be a home run.
The key to persevering through mistakes is by limiting your initial risk.
You can’t take a risk that will put your company out of business if it fails.
So, yes – entrepreneurs take some risks.
But they’re not gamblers. They take calculated risks.
Myth #3: Entrepreneurs are only motivated by money
Would entrepreneurs start a business if they couldn’t generate a profit?
I doubt it.
However, financial gain is not the only motivation for small business owners.
It’s not even first on the list.
Achieving a lifelong dream is the main motivation for entrepreneurs.
Financial stability is second on the list.
Being financially stable means that you’re comfortable and able to make ends meet.
It doesn’t necessarily mean you’re filthy rich and buying Ferraris.
Money is definitely a motivator, but it’s not as important to entrepreneurs as people assume.
Interestingly enough, the amount of money you have can affect how happy you are.
These numbers contradict the saying, “Money can’t buy happiness.”
So you can’t fault entrepreneurs who have a financial motivation.
There are plenty of other incentives to starting your own business as well.
Entrepreneurs have flexibility and control.
Earlier we discussed how you could have a great personal life if you learn to use management skills.
Your hours can be flexible, and you have control over your life and decisions.
You also don’t have to answer to anyone except for yourself.
Leaving a legacy is another motivational factor for entrepreneurs.
Their business is something that can last even after they pass away.
It’s also something they can leave behind for their families and future generations.
Entrepreneurs are also motivated by freedom.
People have limited freedom in their jobs.
75% of workers don’t think their bosses keep the team motivated.
The lack of motivation in their current job can inspire people to leave and become an entrepreneur.
Money is not the only driving force in this decision.
Myth #4: Entrepreneurs raise money from venture capitalists
Not all entrepreneurs raise money from venture capitalists.
So where do people get funds to start a company?
Let’s take a look at the top funding sources.
Venture capital money is on the list, but personal loans, credit, friends, and family far outweigh the venture capitalist funding.
If you want to be a successful entrepreneur, you need to put up your own money.
You can’t guarantee on securing your finances from banks, angel investors, or VCs.
This relates back to what we discussed earlier about risk-taking.
Yes – entrepreneurs take risks.
Risking your own money is part of being an entrepreneur.
Based on the numbers above, you may also be risking money raised by your family and friends.
This isn’t necessarily a bad thing.
Sure, you don’t want to let yourself down.
But it’s extra motivation when you are responsible for repaying debts to your loved ones.
How much money do you need to raise to start a business?
It depends on the industry.
Starting a business may take less money than you think.
Let’s take a look at some well-known companies.
Hewlett Packard is worth over 30 billion dollars today.
They started with less than $600.
Obviously, this is an anomaly.
I’m not saying you can turn $600 into a multi-billion-dollar corporation.
I am saying that you can raise enough money between your personal savings, credit, and loans from family to get your startup off the ground.
You don’t need to secure funding from venture capitalists.
Myth #5: Entrepreneurs have great ideas
Some people may not attempt to start their own business because they don’t have a unique idea.
You don’t need to reinvent the wheel to be an entrepreneur.
There’s nothing wrong with taking an existing idea and making your own business out of it.
As long as you’re not infringing on anyone else’s trademarks, patents, or intellectual property – it’s fine.
Let’s look at an example.
I’m sure you’re familiar with Uber and Lyft.
Uber was founded in 2009.
Lyft launched in 2012.
These two businesses are more or less the same.
Are the founders of Lyft not entrepreneurs?
Of course they are.
Just because they used an existing concept to create their company, doesn’t change anything.
You don’t need a new idea to be an entrepreneur.
How many pizza shops are in your city?
Those restaurant owners didn’t invent a new concept when they decided to sell pizza.
With that in mind, learning how to generate ideas can still help your business.
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Once you get started, you’ll want to come up with creative marketing tactics to grow your business.