• Menu
  • Skip to right header navigation
  • Skip to main content
  • Skip to primary sidebar
  • Skip to footer

PlanningShop

Plan. Start. Grow.

  • Our Products
  • Instructors
  • Entrepreneurs
  • BizGear
  • Rhonda’s Blog
  • Book Rhonda
  • About PlanningShop
  • Search
  • Our Products
  • Instructors
  • Entrepreneurs
  • BizGear
  • Rhonda’s Blog
  • Book Rhonda
  • About PlanningShop
  • Search
Smallbiz myths

8 Myths About Small Business

June 13, 2018 //  by Rhonda Abrams

With USA Today’s launch of their new section for small business, USA and Main, I thought it would be good to get some of the most persistent myths about small business out of the way. Having worked with thousands of small business owners over my more than 25 years in business, and owning a small business myself, I know how believing these myths can keep you from success.

  1. People are either born entrepreneurs or they’re not. You’ll hear this a lot if you’re just starting your business—especially from nay-sayers trying to discourage you. They’ll tell you there’s just one kind of person who can succeed—an extroverted risk taker, a natural salesperson, a leader, a visionary. Hogwash. All kinds of people can and do run successful businesses. The key: find the type of business that suits you.
  2. Fifty percent of businesses fail in the first few years. This is one of the most often repeated ‘alternative facts’ about small business. Yes, within five years, about half of new small businesses close. Few have actually ‘failed.’ The owners may have changed businesses, moved, got a job, or made so much money that they bought a boat and are sailing the seven seas. No, statistics are in your favor. Nearly 80% of businesses started in 2014 were still in business the following year; about half of all businesses are still in business five years later; and a third of all establishments will still be in business after 10 years.
  3. If you build it, they will come. You’ve worked hard and long to start your business, create an innovative product, perfect a wonderful service. You finally open your doors, put up your website, and—nothing. Just because you’ve created something new, something better, or something cheaper doesn’t mean customers flock to your door. You’ve got to get out there and market, market, market. And then sell, sell, sell.
  4. Entrepreneurs must work 24/7. Yes, you will work long and hard running your own small business. You’re the one who must deal with emergencies, staff not showing up, the pipes breaking. When you run the show, it’s easy to feel you can’t afford to leave the shop ever. But without some weekends and nights off and vacations, you’ll burn out. Don’t work ‘round the clock every day.
  5. The first company to market wins. You’ll hear a lot about the “first mover advantage.” For most small businesses, it’s usually better to be a follower than a leader. The company that invents an innovative product spends a great deal of time and money not just developing the product, but also building a market. Typically, it’s the companies that improve upon existing ideas that win big. Google wasn’t the first search engine, iPods weren’t the first mp3 players, and Facebook wasn’t the first social media network.
  6. You can write off everything as a tax deduction. Sure, businesses can deduct a lot of expenses you can’t as an individual. But don’t imagine you can simply deduct $10,000 worth of expensive camera equipment because you sold two of your pictures to an online stock photo company or you can write off that European vacation because you bought one or two products to sell in your shop. And be cautious before writing off part of your mortgage or rent just because you work from home. You’ve still got to follow the rules.
  7. As long as you make sales, you’re OK. Yes, you have to make sales, have customers, to be in business. But the three most important financial aspects of a business are “cash, cash, cash.” Managing cash flow is key to business survival. Without cash, you can’t pay your employees, your bills, or yourself. My second client ever was a profitable florist that was going out of business because they couldn’t manage their cash flow. Cash is king.
  8. You don’t need no stinking business plans. You may hear that since the business world changes rapidly, all you need to do is sketch your business idea out on a napkin or on a canvas. But it’s because the world changes so much that a business plan is more important than ever. No, you don’t need a 35-page perfectly polished document. It’s the planning, not the plan, that helps you stay out of trouble.

Copyright, Rhonda Abrams, 2018

This article originally ran in USA Today on June 13, 2018

Share this:

  • Twitter
  • Facebook
  • LinkedIn
  • Email

Category: Solution Center, USA TodayTag: entrepreneur, myths, rhonda abrams, small business, small business tips, success

Previous Post: «Inspirational Quotations Time to Inspire Your Small Business
Next Post: A Small Biz Needs Values, So Does Our Country Values»

Primary Sidebar

Subscribe to Rhonda's Blog via Email

Instagram @rhondaabrams

Sign up for my newsletter - get small business tip Sign up for my newsletter - get small business tips and the latest info. sent straight to your inbox! Link in profile~
.
.
#smallbusiness #newsletter #smallbizguru
What’s old is new again! How to stay in front of What’s old is new again! How to stay in front of your smallbiz customers, in my latest @usatoday column. Link in profile~
.
.
#smallbusiness #customer #digitalmarketing #smallbizguru
National Doughnut Day on Friday?? Great way to sta National Doughnut Day on Friday?? Great way to start the weekend!! Enjoy, and go find yourself some doughnuts 😋 🍩 
.
.
#smallbusiness #fridayfeeling #nationaldoughnutday
#smallbusiness #tuesdaythoughts #entrepreneur #ins #smallbusiness #tuesdaythoughts #entrepreneur #inspirationalquotes
“And I’m proud to be an American, where at lea “And I’m proud to be an American, where at least I know I’m free. And I won’t forget the men who died, who gave that right to me.” - Lee Greenwood -
.
.
#memorialday #neverforget
We're heading into a long weekend! Here's to some We're heading into a long weekend! Here's to some R&R, productivity . . . whatever your small business needs~
.
.
#smallbusiness #weekend #entrepreneur #fridayfeeling
Sign up for my newsletter - get small business tip Sign up for my newsletter - get small business tips and the latest info. sent straight to your inbox! Link in profile~
.
.
#smallbusiness #tips #entrepreneur #newsletter #smallbizguru
#smallbusiness #tuesdaythoughts #inspirationalquot #smallbusiness #tuesdaythoughts #inspirationalquotes
Here's to a great week, small business owners! . . Here's to a great week, small business owners!
.
.
#smallbusiness #smallbusinessowner #mondaymotivation
My Tweets
  • Sign up for my newsletter - get small business tip Sign up for my newsletter - get small business tips and the latest info. sent straight to your inbox! Link in profile~
.
.
#smallbusiness #newsletter #smallbizguru
    What’s old is new again! How to stay in front of What’s old is new again! How to stay in front of your smallbiz customers, in my latest @usatoday column. Link in profile~
.
.
#smallbusiness #customer #digitalmarketing #smallbizguru
    National Doughnut Day on Friday?? Great way to sta National Doughnut Day on Friday?? Great way to start the weekend!! Enjoy, and go find yourself some doughnuts 😋 🍩 
.
.
#smallbusiness #fridayfeeling #nationaldoughnutday
    #smallbusiness #tuesdaythoughts #entrepreneur #ins #smallbusiness #tuesdaythoughts #entrepreneur #inspirationalquotes
    “And I’m proud to be an American, where at lea “And I’m proud to be an American, where at least I know I’m free. And I won’t forget the men who died, who gave that right to me.” - Lee Greenwood -
.
.
#memorialday #neverforget
    We're heading into a long weekend! Here's to some We're heading into a long weekend! Here's to some R&R, productivity . . . whatever your small business needs~
.
.
#smallbusiness #weekend #entrepreneur #fridayfeeling
    Sign up for my newsletter - get small business tip Sign up for my newsletter - get small business tips and the latest info. sent straight to your inbox! Link in profile~
.
.
#smallbusiness #tips #entrepreneur #newsletter #smallbizguru
  • Footer

    Our Products
    Instructor Central

    Privacy Policy
    Contact Us

    • Email
    • Facebook
    • Instagram
    • LinkedIn
    • Twitter

    Copyright © 2023 PlanningShop · All Rights Reserved · Site design by paulinaart

    This website uses cookies to improve your experience. We'll assume you're ok with this, but you can opt-out if you wish. ACCEPT Read More
    Privacy & Cookies Policy

    Privacy Overview

    This website uses cookies to improve your experience while you navigate through the website. Out of these cookies, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may have an effect on your browsing experience.
    Necessary
    Always Enabled
    Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
    Non-necessary
    Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
    SAVE & ACCEPT