Notions, Myths, and Outdated Perceptions of Business Risk

Filed in archive Start Up on January 10, 2007

There is a thought provoking post by longtime blogger penelope Trunk, she provides eight reasons how entrepreneurship has changed and I think they also provide insight into the myths and mistakes people make when thinking about starting a business.

Over the course of the last year, I've interviewed a lot of people about entrepreneurship. The common thread running through all the interviews is that entrepreneurship is different than it was even five years ago. Barriers to entry are lower than ever, and if you measure success in terms of personal growth and flexible work, then the success rates for entrepreneurs is sky high. Via 8 Outdated notions of entrepreneurship

For example:

1) "Entrepreneurs are born with a specific set of character traits." There are as many ways to start a business and types of businesses as there are people.

2) "Raise money and spend a lot of it on advertising." Certainly blogs, websites have lowered the cost of doing business.

3) "Women will get power in corporate America and change it." Unfortunately, it still is an old boys club and if ladies want to change things they will have to do it on their own terms and own business.

4) "The self-employed are happy because they are doing what they love." Penelope states "The self-employed are happy because they have control over their work and they have a flexible lifestyle." and that my friends is the best reason of all to start a business, self-actualization, seeing your ideas and business come to life.

5) "Climb the corporate ladder, learn the ropes, then start a company." Guess what when you own your own business there is no corporate ladder, just the one to climb to go and get your customers.

6) "Entrepreneurship is all or nothing." Yes, you can test the waters as Penelope says, while still keeping your job, be careful, some employment agreements have specific clauses about moonlighting.

7) "Starting a business is risky." With the average investment being only $8,000 to start a business the risk is low and businesses do not fail as much as the media says.

8) "Do a lot of planning and make sure it's going to work before you start." This is true, however, if you want a loan from a bank you will need a business plan because they will ask you for it, my book, Tips and Traps for Writing an Effective Business Plan is just out and all 374 pages will help you get your money from the bank or investors.