Myth 1: Business people are born not made.
Reality: Business people serve an apprenticeship acquiring skills, contacts and experiences often over a long period to enable them to start their business. This includes large doses of personal development. This is the reason why this Toolkit was developed.
Myth 2: You need to use formal business techniques such as market research, financial analysis and business planning to be successful in business. This is left brain rational thinking.
Reality: Business people spot superior opportunities then work hard at marshalling the resources they need to set up their business and build their skills in order to create a valued business. This is right brain creative thinking, which you need to develop.
Myth 3: Business people are risk takers.
Reality: Business people do take carefully calculated risks. They then spend a great deal of time and energy in doing all they can to minimize those risks.
Myth 4: Money from a bank is the biggest blockage to starting a business.
Reality: Cash is not normally a real blockage. Eighty per cent of start-up capital is from personal savings, 30 per cent from family and friends and only 15 percent from the banks. Note: More than one source is used in most cases. However, raising money can be a problem for high-tech start-ups that require large investments up-front. If you have a superior opportunity, raising money should not be a problem.
Myth 5: If a business person has sufficient capital he or she cannot go wrong.
Reality: The opposite is true. Too much money can encourage a lack of discipline that can lead to impulsive spending which normally creates problems.
Myth 6: Any really good idea can be turned into a successful business.
Reality: Business people understand the difference between an idea and an opportunity. An idea is something they are personally passionate about while an opportunity normally solves a customer’s problem. This is why we encourage you to develop superior opportunities.
Myth 7: Business people are egotistical, independent and are their own masters.
Reality: Yes, they are egotistical and independent but they actually can choose to serve many masters, including shareholders, customers, creditors and their own families. It is also extremely rare to develop a business to more than £1 million single-handedly.
Myth 8: Starting a business is risky and often ends in failure.
Reality: Most businesses that end cease trading, they do not fail. Less than 2 per cent actually go bankrupt. Businesses fail, business people do not.
Myth 9: Business is about planning in detail, following a well proven detailed logical approach to starting a business.
Reality: There is no proven logical approach to starting a business! Business is about passion, guts, bravery, energy and persistence and solving problems as you go along.
Myth 10: Running a business can consume all your time.
Reality: True! If you are successful it takes lots of time and if you are struggling it takes even more of your time! It’s also why we encourage you to develop your goal directed energy.
This dichotomy was adapted from David Hall’s entrepreneurship toolkit.