Over the years, as many entrepreneurs have hit the jackpot of fame and success, there are certain glamorous associations that have become attached with the image of being an entrepreneur. But the reality is far from that. Entrepreneurship is difficult – Most entrepreneurs need to grind it out the hard way. It requires huge amount of patience, perseverance and dollops of luck as well.
In talks with many first-time upcoming entrepreneurs, we have realized that they look at entrepreneurship as a quick way to get rich, which rarely is the case - Let’s take a look at the top 5 myths that first-time upcoming entrepreneurs need to bust.
- 1 Myth #1: Entrepreneurship means oodles of profits
- 2 Myth #2: I need to be a dropout to be a successful entrepreneur
- 3 Myth #3: I don’t need a business plan if there is no external funding
- 4 Myth #4: My aim is to become like Amazon or Facebook
- 5 Myth #5: Social networking is where I need to invest all my time
Myth #1: Entrepreneurship means oodles of profits
The glorious idea of entrepreneurship entails a picture full of moneybags made out of profits. Entrepreneurs who are influenced and driven by the sole idea of starting a business to earn profits are en route to heavy disappointment. The key to entrepreneurial success is reaching your breakeven point, not making profit.
Reaching your breakeven point within your estimated time period itself is a benchmark which points towards the fact that your business is sustainable and has survived the acid test of market fluctuations and customer acceptance.
Myth #2: I need to be a dropout to be a successful entrepreneur
It may be a time tested fact that entrepreneurship doesn’t need any formal educational qualifications. But that doesn’t mean you go out of your way to follow the footsteps of college dropouts like Mark Zuckerberg, Steve Jobs and Bill Gates.
What worked for them was the fact they had foresight and launched their ideas in the market at the right time, not because they were Ivy League dropouts. Yes, they have ended up making dropping out of college look fashionable, but we insist you don’t do that. Your education and some formal work experience will only enhance your entrepreneurial skills to a higher level.
Myth #3: I don’t need a business plan if there is no external funding
This has to be one of the biggest myths that entrepreneurs need to re-think. Whether someone is angel investing in your startup or you’re borrowing money from your uncle, a business plan is one of the first tools you need to be armed with. By putting down your plans, resources and business estimates on paper, you will get an overview of the position of your business. Things that you never considered before will come into light and you will be able to cover for that, along with contingencies and exit strategies.
Moreover, making a business plan will only re-emphasize your conviction for the startup.
Myth #4: My aim is to become like Amazon or Facebook
It’s great to start off by thinking that you want to reach the heights that have been scaled by Apple, Amazon or other entrepreneurial greats. But the yardstick to the success of your business has to be the kind of innovations your business has introduced, the amount of employment it has generated, the number of customers if has grown and the number of new products and services it has been able to introduce.
When Apple, Amazon and other entrepreneurial greats started out, they didn’t know they were going to become giants – their sole aim was to deliver quality.
Myth #5: Social networking is where I need to invest all my time
Although everyone is jumping on the social media bandwagon, you need to first analyze how social media is going to benefit you. Does your business only need some web presence so that more people can contact you or do your products and services depend entirely on the engagement of your brand with customers online? The objective of your business will determine the social networking strategy you need. For example, as a ball- bearings manufacturer in India, you probably need to focus on offline relationships rather than online because your potential stakeholders and clients may not be very web
savvy in the first place.