Tuesday, July 17, 2007

Entrepreneurship Myths/Misconceptions

Here's something I got from Heather Robinette, Business Consultant at UALR Arkansas Small Business Development Center a few years back:

I will receive free money or loans because I am a minority, woman, veteran, or ex-convict.
I’ll get rich quick and won’t have to ‘put up’ with people.
I will be my own boss, be free to do whatever I want, and no one will tell me what to do.
I will work less and be able to have more free time if I am an owner versus an employee.
It doesn’t matter what my family thinks about me going into business.
If I know how to do the work, then I can run the business.
I plan to hire someone to run my business for me.
If I build it, they will come. Whenever I turn the key on the door, there will be a line of people waiting to buy my products.
I know my idea will work because my friends and family thought it was a great idea.
I don’t need to write a business plan because I have contracts with my customers.
There is no competition in my area.
The lack of a product or service in an area is the most important indicator of a need for it.
The way to succeed is to have the lowest prices in town.
This restaurant I’m buying did poorly because the owner’s prices were too high. I’ll just lower prices and be more successful.
Incorporating my business will protect me from all liability.
Advertising is a good place to start when cutting expenses.
If I attend a tax education seminar, the IRS will audit my return.
If I attend an environmental management seminar, DEP (Department of Environmental Protection) will visit me.
If I attend an OSHA seminar, I will be visited.
I do not have to put any money down if I borrow from a bank.
There is no way I am going to put my house at risk by using it as collateral for a loan.
I am buying a successful business, so the bank will only look at the profitability of the existing business and not at my credit or experience.
If I don’t pay the payroll taxes I can just declare bankruptcy and they will go away.
I have to be a risk-taker to be an entrepreneur.
Entrepreneurs are born, not made.
Entrepreneurs need an invention.

If they still want to start that business, they should take a look at the articles at StartUp Junkies.org.

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