In our previous post we showed several misunderstandings potential small business owners have that hurts them. In this post we want to show the other side. These are the myths that prevent many would-be owners from getting into small business. While it is certainly challenging to own and operate small business; they are not insurmountable and the rewards make it worthwhile to pursue that dream.
We hope that by understanding these common myths and realities you will not get scared by the challenges and be able to make an informed decision.
- Myth –It is impossible for small businesses to compete against large national corporations.
Reality – We are sure you have heard horror stories like this in the past. A large, national corporation such as Wal-Mart moves to a town and drives number of small businesses out. While this may be true in some cases it doesn’t mean that small business owners do not have any chance of competing with them.
The key to success is to change the game on them. You will not be able to compete with them on price. Instead you have to look for other attributes that customers value such as convenience, uniqueness, relationship, etc. and focus on those. You should build 1-on-1 relationship with customers; get involved in the community and so on. Look at this example of how a local auto repair shop continues to thrive in this environment. - Myth –Almost 90% of small businesses fail in the first 3 years anyway. So why bother?
Reality – This is a widely held, yet completely misplaced, myth. Look around where you live and you will find number of small businesses that are thriving. Where did they come from? How did they manage to survive? Granted, there are challenges in small business; however there are number of forces working for you at the same time. In fact, there are over 30 million small businesses in existence in U.S. and they employ more than half of all workers.
Given the economic uncertainty and resulting corporate downsizing; we would argue that owning a small business is the only way to control your destiny as long as you are willing to give your full heart and soul to it. - Myth –I can wave good-bye to my friends and families now that I am going to start a business.
Reality – We will admit we told you in the previous post that running a small business is a 24×7 job. However, it doesn’t mean that you have to lose everything else to make it work. While you may have to spend more time initially to get it going; there are certain steps you can take once the business reaches stead-state that will help you free up time for personal life.
We showed several techniques on how to accomplish this in previous posts here and here. - Myth –I cannot get into small business because I don’t money needed to start a business.
Reality – There are many small businesses that need significant investment and personal savings. However, you don’t have to go big and start with a big bang when starting out. You should look for franchises that do not need large investment and incrementally build from there. A number of web sites let you search for franchises such as BizBuySell , Franchise Gator and others based on investment required and other criteria.
Another alternative is to go the partnership route. In earlier posts we showed when it makes sense to get into partnership and what to watch out for if you decide to go in. - Myth –Recession is the worst time to start small business.
Reality – We tend to think the opposite is really true. Recessionary time, such as this one, is the best time to start a business. In an earlier post we showed why this is case.
So go ahead and take a plunge!!! We are sure you will achieve your dreams as long as you understand and mitigate the risks and give it your best shot. GOOD LUCK.
Image Courtesy: spinkney
