Three Small Business Misconceptions to Avoid

Starting a new business can be an exciting time. You are opening a new phase of your life that depends on your talents and abilities more than any endeavor of your life. Just be sure to understand what you are getting into before you cut all ties to your day job.

Overcoming the Odds

Running a small business takes a lot of work, a solid understanding of management, and a little luck. Research shows that every new small business has only a 50 percent chance of succeeding in the first five years. You will need to spend a lot of time building and nurturing your business before you can expect to begin to overcome those odds and reap rewards. One of the first things to do is eliminate any misconceptions you may have about running a small business.

1. Self Reliance is the Key to Happiness

It can be refreshing to be at the top of the ladder when you own your business. You don’t have a boss to report to, and you get to make all of the decisions on your own. Unfortunately, you still have to make all the decisions on your own. You are responsible for the big choices and the small ones that will keep your business running or run it into the ground. You receive credit for success and the blame for failures. This requires a balanced temperament and thick skin.

2. A Fresh New Idea is All You Need

Most successful small businesses are not brand new ideas. Most of them offer familiar products and services in a new way. The danger of presenting a brand new idea to the market is that customers may not realize a need for that new product. You might be better off with something people can already relate to and understand. It is easier to break into an established market than it is to create a brand new market on your own. You are better off differentiating yourself with your take on an existing product rather than creating an entirely new idea.

3. Setting Your Own Hours Means More Free Time

It’s tempting to look at a small business owner’s hours and be jealous. After all, they can choose when to work and when to stay home. Unfortunately, the line between work and play becomes very fuzzy when you run a business. You may find yourself working at all hours while you struggle to get your business of the ground. In the meantime, relationships will suffer.

It’s important to understand that being a small business owner is a lifestyle choice. You will probably spend twice as many hours working on your self-owned business than you would ever spend working for someone else. Of course, if you’re doing what you love, it rarely feels like work.