There are several factors influencing entrepreneur success, unfortunately, there are also plenty of myths about self employment. Getting the facts about becoming an entrepreneur before you launch your business can help to ensure you are prepared for the challenges that lie ahead.
Myths and Facts About Entrepreneurs
Myth Entrepreneurs have special traits.
Fact There is no magic formula for entrepreneurship. There are many different and successful approaches to business success, the one thing they all have in common is that they require a lot of hard work and persistence.
Fact Many people start businesses because they feel they fall outside of the establishment. For a variety of reasons, the traditional labor market does not work for them, so they create their own opportunities.
Myth Entrepreneurs are extreme risk takers.
Fact Successful entrepreneurs know how to manage and minimize risk. They also understand that the guaranteed for life, stable corporate job no longer exists in today's labor market.
Fact Most small business are funded through personal money, friends, family, credit cards, second mortgages and small business loans.
Myth Nine out of ten businesses fail in the first year.
Fact The US Small Business Administration indicates that two-thirds of new businesses survive at lease two years and data from Dun and Bradstreet indicates the 76% of new business were operating after two years.
Fact It typically takes three to five years for a business to become truly profitable.
Fact Planning well, including contingency planning, is key to business success. Lack of management experience, particularly the inability to handle unexpected situations and setbacks, accounts for many small business failures.
Myth The business world is full of compelling overnight success stories.
Fact Although success may appear to be instant from an outsider's point of view, it rarely is. Persistence, patience and a positive attitude are crucial.
Fact Multiple streams of income will help to protect the viability of your business. If you rely solely on one single source of income, you'll leave yourself vulnerable to changing markets and conditions in that sector.
Fact You'll work harder for yourself than you would ever work for an employer. When you're an entrepreneur, you're always working or thinking about your business.
Fact Business plans are crucial. A good business plan will give you accurate financial projections, require you to assess your competition and determine your unique place in the market and develop contingency plans for unexpected events.
Understand the factors influencing entrepreneur success
and don't be misled by the common myths. To enjoy the rewards of building a successful business, launch your business with your eyes wide open with a plan to persist and handle the challenges as well as the rewards of your business.