Do you think that starting a small business and being your own boss is better than doing a standard 9 to 5 job? Think again. Small businesses are not for everyone. Some common myths have surrounded this industry for long. Today, we will bust all those myths and help you get a clearer picture of the entrepreneurship.
Myth: You can work any number of hours you want
Truth: You won’t have to work 8 hours a day or 40 hours a week. But that is only half the story. In reality, you will have to work much more than that. You will likely be the accountant, marketer, bookkeeper, boss, employee- everything.
There is hardly a small business owner around who gets to work for 40 hours per week or less. To make their businesses work, entrepreneurs even burn the midnight oil. If you think you will be spending something even remotely close to the 4-hour work week, you are wrong. In fact, you will be disappointed.
Myth: You will enjoy vacations
Truth: You won’t. If you are dreaming about earning millions with your new business venture and then going on an exotic vacation in Europe, you need a reality check. As an entrepreneur, you will have to dedicate a lot of your time and resources in setting up your business. You may either be short of time or money to enjoy that exotic vacation you always dreamt of.
This doesn’t mean that small business owners do not enjoy vacations at all. It just means that things are a lot different in reality that what you may imagine.
Myth: You will be a celebrity
Truth: Celebrity status doesn’t just come by starting a small business. You need to be able to create a good business and create something valuable for your customers. Your friends and family may be excited with your new business idea that doesn’t translate to celebrity. You will likely have to work your way up to the top if you want it. This, of course, won’t be an easy ride.
Myth: VCs will be ready to fund you
Truth: Businesses, especially small businesses range from the traditional to the highly innovative. Not all of these businesses need or get funding from VCs. For a small business, you will likely have to depend on small business loans by banks or local government grants. You could also choose to take loans from your friends and family. If nothing else is available, you will have to bootstrap your business.
VCs are generally not interested in small businesses. However, you could always look for a partner who is ready to bring in some expertise or money in exchange of some equity. These days, Crowdfunding is also a common way to generate funding for your business.
Small businesses aren’t easy to start and operate. They demand perseverance. If you believe that you can handle the workload of 5 people in the beginning without getting bugged by profitability (at least in the beginning) you can start your own small business too. If not, you should wait a little more before thinking of change.