4 Common Myths About Owning Your Own Business
Owning your own business can be an exciting adventure. The risks and rewards associated with growing your company from a simple idea into a full-fledged business appeal to a wide variety of people.
If you dream of becoming an entrepreneur, it can be easy to get caught up in some of the hype about owning your own business. However, many myths persist—here are 4 common entrepreneurial myths that are mostly fiction.
Myth 1: You Can Make Your Own Schedule
While this has some truth to it, the reality of the situation is often long hours set by the needs and availability of your clients, suppliers, partners, etc. If you own your own business, you won’t have a supervisor creating a set schedule for you to be in the office every day. However, especially as you first get started, if you want your business to be successful, your schedule will cater to the needs of those you need to help grow your business.
When you need to negotiate prices with suppliers, you’ll often have to accommodate their schedule—even if that involves staying up into the wee hours of the night because of a time difference.
You also have to be available for your customers. If you aren’t available to help a customer or meet with a potential client because you decided to take an extended vacation or come in late, many of them will be more than happy to go to a competitor who is available.
Furthermore, you’ll need to be available for any employees you’ve hired. While they might be passionate about your business, there are calls only you can make and information only you will have. The best business owners realize their schedules are more often set by their responsibilities, not their preferences.
Myth 2: You Set Your Own Salary
You might have dreams of starting your own business and lining your pockets with all of the profits. As a sole owner with no investors, you might have the ability to pull out what you want for your salary, but you won’t be in business long if you take that strategy. Most new business owners realize that their salary is one of the most negotiable expenses in the entire business.
It takes time and a lot of money management for businesses to become profitable. A business degree with an accounting emphasis can give you the skills you need to make smart money management decisions.
For the first while, most, if not all, of your revenue will go to paying expenses and growing the business. It’s common for entrepreneurs not to take a salary out of the business for at least a year. Instead of your salary being determined by a supervisor, your salary will be determined by the needs and expenses of your business.
Myth 3: You Just Need Passion and One Great Idea
Owning and building your own business essentially requires passion and a good idea. Most people aren’t willing to invest the time, money, and effort necessary for something they don’t believe in. While passion for a great idea might drive you, success will rely far more on consistent hard work and sacrifice. Aimless passion won’t find and negotiate the right supply contracts, and a great idea won’t ship, package, or market itself. This is where a good education becomes invaluable.
The world’s best idea will profit you nothing if it’s not known and accessible. You could hold the secret to curing a common cold, but having the idea and being excited about it isn’t enough. People need to know what you’re selling and have a simple way to buy it. A business degree with a new media marketing emphasis can help you learn how to get your product or services in front of the right customers.
Myth 4: You Are Your Own Boss
Technically this is true. You won’t have anyone above you in the company chain of command, so, on paper, you will be your own boss. However, you’ll soon find that you answer to far more people than you ever have at a normal 9-5 job.
As a business owner, you will answer to and work for everyone from your customers to your employees to your investors. If you have employees, you aren’t just responsible for your paycheck, but for the paychecks of everyone who works for you as well. If you’ve taken on investors, you’ll also have to justify earnings and business decisions.
While this might seem daunting, the right education can prepare you to start and run a successful business. You’ll be able to enjoy the title of boss along with the responsibilities and rewards that come with it.