10 Myths About Entrepreneurs | ZenBusiness Inc.

There are tons of very fallacious myths on the market about entrepreneurs that could be worthwhile so that you can study as you consider whether or not beginning a enterprise is best for you.

In his e book, How one can Begin and Function a Enterprise: Successful the Entrepreneurial Recreation, which I printed quite a lot of years in the past, writer David Rye lists and debunks quite a lot of the myths about entrepreneurs.

Delusion No. 1: Entrepreneurs are excessive danger takers

Entrepreneurs, Rye states, are sometimes considered by way of the chance they assume. Even the dictionary describes an entrepreneur as one who assumes enterprise dangers. Nonetheless, like all prudent businesspeople, entrepreneurs know that taking excessive dangers is a big gamble. Entrepreneurs are neither excessive nor low danger takers. They like conditions through which they’ll affect the result, they usually like challenges in the event that they imagine the percentages are of their favor.

They seldom act till they’ve assessed all of the dangers related to an endeavor, they usually have an innate skill to make sense out of complexity. These are traits that carry them on to success the place others fail.

I actually agree with Rye. Entrepreneurs usually search the perfect danger/reward state of affairs. Like most people, they’re usually are somewhat hesitant to danger all the things and take wild possibilities.

A technique entrepreneurs can restrict the chance they’re uncovered to is by selecting one of many greatest enterprise concepts on the market. Realizing which companies to begin and which to keep away from is step one in direction of success.

Delusion No. 2: Entrepreneurs are born

Many individuals, Rye says, imagine that entrepreneurs possess innate, genetic skills. Nonetheless, consultants usually agree that the majority entrepreneurs weren’t born; they discovered to change into entrepreneurs. The current proliferation of school and college programs on the topic helps this level. Entrepreneurship is at the moment being efficiently taught.

Once more, I agree with Rye. I can’t overemphasize the truth that virtually anybody is usually a profitable entrepreneur. Nonetheless, each aspiring entrepreneur ought to ask themselves these questions earlier than committing to a enterprise. Beginning your personal firm isn’t a simple resolution, and you could perceive that it’s going to change your life in some ways.

Delusion No. 3: Entrepreneurs are primarily motivated to get wealthy

Any profitable entrepreneur, argues Rye, will let you know that beginning a enterprise isn’t a get-rich-quick different. New companies normally take from one to a few years to show a revenue. Within the meantime, you’re thought of to be doing properly for those who break even. Through the enterprise start-up stage, entrepreneurs don’t purchase something they don’t want, akin to fancy vehicles. Most drive junk vehicles and use their surplus cash to repay debt or reinvest it within the enterprise. Their focus is on creating an organization with a powerful monetary base for future growth.

I largely agree with Rye. For entrepreneurs, cash isn’t all the things. However there’s nothing embarrassing about being partially motivated by cash, as are most entrepreneurs. If entrepreneurs didn’t have the flexibility to get wealthy and get financially rewarded for his or her work, the USA may very well be virtually as poor as Cuba. It’s OK to generate profits, construct a enterprise, and assist construct your native economic system within the course of.

Realizing what motivates you to begin a enterprise is only the start. Take note of these 5 essential steps to begin your personal enterprise.

Delusion No. 4: Entrepreneurs give little consideration to their private life

All profitable entrepreneurs, Rye says, work lengthy hours, which cuts into their private life. Nonetheless, lengthy working hours usually are not distinctive to entrepreneurs. Many company managers and executives work properly past the typical 40-hour workweek. The first distinction between the entrepreneur and his or her company counterpart is schedule management.

Within the company world, it’s possible you’ll not have management over your schedule. If some higher-level supervisor calls a Saturday assembly, you’ve obtained no selection however to be there. Entrepreneurs don’t thoughts working 60- to 70-hour weeks, however they may do all the things they’ll to protect their non-public time. They schedule vital conferences in the course of the week in order that they’ll have weekends off for his or her private life, which is essential to them.

I discover what Rye says is true, that the majority entrepreneurs do give a whole lot of consideration to their private lives. I’ve, at occasions, been an outlier and had virtually no private time, akin to once I was a full-time pupil at Harvard Enterprise College and working 4 start-up companies on the identical time, or was a full-time school pupil and beginning an unbiased newspaper enterprise. Typically, as an entrepreneur with an particularly fast-growing enterprise, you’re going to must sacrifice private time.

Even for those who’re more likely to sacrifice a few of your private time to get what you are promoting off the bottom, beginning it isn’t essentially the most time-consuming a part of the method. It doesn’t take a lot time to begin your personal enterprise. Operating it and getting it to the subsequent degree is one other story…

Delusion No. 5: Entrepreneurs are sometimes high-tech wizards

We’re all conscious, says Rye, of some high-tech entrepreneurial wizards who’ve made it. Media consideration overplays the success of those few high-tech entrepreneurs. Solely a small share of right this moment’s private companies are thought of excessive tech, and what was thought of excessive tech just some years in the past isn’t thought of excessive tech by right this moment’s requirements.

It takes excessive revenue margins, not excessive tech, to make it as an entrepreneur. One has solely to take a look at the issues which have plagued the pc trade to grasp this fundamental precept. Excessive-tech private computer systems did very properly once they made excessive revenue margins. The trade then went right into a nosedive when earnings fell.

Sure, I believe Rye is true on the cash. Only a few companies require high-tech skills. Actually, I’ve began and run a multimedia enterprise, an interactive software program enterprise, and two Web companies, with just about no tech expertise or experience. (Though, to make certain, I did study to do some laptop programming alongside the way in which once I began these companies to assist me respect what the engineers had been doing.) Moreover, most companies aren’t even tech companies in any respect.

Don’t imagine me? Take a look at this checklist of the perfect enterprise concepts and see for your self!

Delusion No. 6: Entrepreneurs Are loners and introverts

Initially, Rye says, entrepreneurs may work alone on a enterprise thought by tinkering within the solitude of their storage or den. On this delusion, I don’t completely agree with Rye. The astute entrepreneur is aware of that she or he should draw on the expertise and concepts of others with a view to succeed. Entrepreneurs will actively search the recommendation of others and can make many enterprise contacts to validate their enterprise concepts. The entrepreneur who’s a loner and received’t discuss to anyone won’t ever begin a profitable enterprise.

I’ve spent a whole lot of time working largely in isolation in the course of the early phases of constructing companies. I believe a whole lot of different entrepreneurs have, too. Not superb in hindsight, however that’s what I usually did. Typically, I believe entrepreneurs are prepared to work independently if it’s essential to succeed. However even independent-minded individuals can get lonely, particularly in the event that they’re working day and evening in a small home-based enterprise.

Delusion No. 7: Entrepreneurs are job hoppers

A current research of profitable entrepreneurs, notes Rye, confirmed that the majority of them labored for a big company for quite a lot of years earlier than they began their very own enterprise. In each occasion, they used the company construction to study all the things they might in regards to the enterprise they supposed to ascertain earlier than they began their very own. Entrepreneurs usually are not job hoppers.

I are inclined to agree with Rye. I believe most entrepreneurs have normally had monitor file within the office. Most have spent years working for different individuals earlier than occurring their very own. However you don’t have to take action to succeed. The longest single job I ever held lasted about eight weeks, however in whole, I’ve solely labored a couple of months for anybody else in my whole lifetime.

Delusion No. 8: Entrepreneurs finance their enterprise with enterprise capital

Entrepreneurs, Rye says, know that enterprise capital cash is without doubt one of the most costly types of funding they’ll get. Consequently, they may keep away from enterprise capitalists, utilizing them solely as a final resort. Most entrepreneurs fund their enterprise from private financial savings or by borrowing from mates or lending establishments.

I usually remind those who enterprise capital is a comparatively small trade and, as such, funds an especially minute variety of small companies. To be financed by a VC agency, what you are promoting may want to satisfy all types of standards, after which discover a VC agency that absolutely loves it. Moreover, since VC companies have a tendency to not wish to put a lot cash into anyone startup, most VC-funded startups must get cash from not one however a number of totally different companies.

Delusion No. 9: Entrepreneurs are sometimes ruthless or misleading

Rye thinks that some individuals imagine that to make it as an entrepreneur, it’s important to be misleading and step on anyone who will get in your manner. Quite the opposite, this mode of operation doesn’t work for the entrepreneur. The really ruthless or misleading entrepreneur will usually alienate others and be compelled to waste time and power repairing relationships with workers, prospects, and suppliers, or just fail.

I don’t know if individuals are predisposed to suppose negatively of entrepreneurs as Rye states. However, in any occasion, I believe entrepreneurs have some unhealthy apples of their ranks. Not many, however some. I’ve misplaced gross sales to rivals who fabricate the information, exaggerate the reality, slander their rivals, and interact in all types of different unethical conduct. However I’ve discovered that such rivals finally implode.

Usually, they lose their greatest workers, whom in addition they deal with poorly, or they lose their prospects. As soon as, once I was in a dogfight with a very ruthless competitor in a enterprise that was extraordinarily dependent upon gross sales, his three greatest gross sales individuals, in addition to his gross sales supervisor, approached me on their very own initiative and ended up becoming a member of my workforce.

Delusion No. 10: Entrepreneurs have restricted dedication

Rye says it’s a delusion that entrepreneurs usually are not devoted to anyone factor. However he provides that dedication is an attribute that each one profitable entrepreneurs exhibit. They’re devoted to changing into their very own boss. To this finish, they’ll work like a canine to make their enterprise succeed.

Whereas I agree with Rye that entrepreneurs will work like a canine to succeed, I do suppose that many entrepreneurs can change companies or route faster than different individuals. Usually, this skill to change route rapidly might be important for achievement, and entrepreneurs have a tendency to not change route recklessly, though there are all the time exceptions.

Takeaways You Can Use

  • There are a whole lot of myths about entrepreneurs.
  • Many of the generalizations about entrepreneurs aren’t true.
  • You don’t must match the stereotype of an entrepreneur to achieve success.

Searching for a enterprise thought?

Take a look at my well-liked article, 1001 Small Enterprise Concepts. This complete multi-page article presents knowledgeable recommendation on each single enterprise thought. It consists of home-based, on-line, steady-income, low-cost product and repair concepts. Most of the concepts on this lengthy article might be began half time.

Bob Adams is a Harvard MBA serial entrepreneur. He has began over a dozen companies, together with one which he launched with $1500 and offered for $40 million. He has written 17 books and created 52 on-line programs for entrepreneurs.