Contributor David Finkel discusses why building a successful and scalable business is more realistic than you might think in the article “The 4 Most Costly Business Owner Myths,” featured on Inc.’s website.
“Sure, maybe only a small fraction of a percent will ever build a true ‘unicorn’ [in business], but if the work I’ve done with our business coaching clients over the past decade has taught me anything it’s this: owning a successful, scalable … business is doable and realistic,” says Finkel in the article.
In the article, Finkel shares four common business owner myths and why they aren’t completely accurate:
- It’s too risky. Most people have heard that starting a business is “too risky” and about 90 percent of new businesses fail within the first five years. Yet, according to government and academic studies, a standard startup with at least one employee has a about a 70 percent chance of still being in business after two years. In fact, asserts Finkel in the article, about 50 percent of startups are still in business after five years.
- It will consume all your time. Starting a new business requires a lot of time and money. However, when you consider your big picture goals and how you aspire to create a profitable business which creates value in your community, the time needed is well worth it. And, notes Finkel in the article, the bottom line is to build a business and not a job, adding, “Yes, it will be all-consuming early on, but over time you can transition your business away from needing you on a daily basis. This magical shift gives you freedom.”
- You must stay in control. “Control is a trap that will wrap your business around you, making it grow progressively more dependent on you,” explains Finkel in the article. “Instead, learn to build your business with the systems, team, controls, and scalable solutions in place that enable it to operate independent of your autocratic control.” An owner-independent business can be a viable choice, you just have to let go of certain parts of the business and allow your team members, software and systems to take on some of the control.
- It’s too expensive. Finkel continues in the article that most new businesses are launched with less than $10,000 in startup capital, according to studies. However, some new businesses, such as carwashes, might require larger capital due to expensive equipment and facilities, development costs and/or staffing requirements. “If you require outside funding, you can bootstrap (fund out of sales), raise private capital (from family, friends, angel investors or venture capital sources), borrow through SBA (Small Business Administration) loan programs, crowdsource your funding or create a joint venture to launch your business without a lot of personal capital,” suggests Finkel in the article.
You can read the entire article on common myths of launching a new business here.
