Myths on Entrepreneurship

The Covid-19 pandemic has had a massive effect on nearly all aspects of daily life- including jobs. The ongoing lockdown restrictions have forced many businesses to let go of many of their staff, if not close altogether. Considering the Government’s furlough scheme is due to end soon, and we are heading into a devastating recession- things aren’t looking good for business.

The effects of Covid and lockdown restrictions will mean a lot of people are going to be out of work. There are options available for these people, including the abundance of temporary work, otherwise known as the gig economy. However, as we have realised, these types of jobs provide very little security, which is what workers need, now more than ever.

With so much uncertainty, it’s not surprising that many people are choosing to start their own businesses. Self-employment can be difficult, requiring dedication and a lot of hard work, but it does allow individuals to take back control and create their own opportunities.

Therefore, it’s a good time to look at some common misconceptions and myths surrounding entrepreneurship.

Timing is Key

Many prospective business owners delay their move into self-employment because they’re “waiting for the right time”. Obviously, there are times when starting a business may be more difficult; however, you need to avoid falling into the trap of waiting for the perfect moment that won’t ever arrive. If you’re worried about beginning the journey, then start with small steps. If you’re dedicated and put in the hours, timing is irrelevant.

You Need Experience

When it comes to experience, you can never have too much, but it isn’t a prerequisite for starting a business. It is only through taking the risk of starting your own company and learning first hand, that you can hone your entrepreneurial skills. You are guaranteed to make mistakes, but it’s through this trial and error that you learn and grow.

You Need a Complete Business Plan

Business plans not only provide a framework to follow when building a company, but it’s also necessary information for any potential investors. This being said, you don’t necessarily need a complete and comprehensive business plan before you to move into self-employment. A rough guide can be vital, but there also needs to be room for adaptation and spontaneity. Don’t be dissuaded from entrepreneurship because you haven’t got it all figured out; business plans grow with the company.

You Need Lots of Money

One of the main issues which stops people from taking the first step in creating a business is money. There is a common misconception that a large amount of capital is required before starting any new company. It’s true that you will need some money to cover start-up costs, stock, equipment etc., but you can start small. Use the money that you have and build your business around that, growing as your capital grows.

You Need Staff

Hiring staff for your business is completely dependent on the type of company you have and your resources. If you need staff then wait until you have the money to invest in them; however, you may never need staff, it’s all dependent on the business. Either way, don’t feel pressure at the beginning because you don’t have employees, start small and grow organically.

You Need to be a Workaholic

Launching a business involves many hours of hard work, dedication and laser focus, but it can be easy to burn yourself out. Try and find a balance between working hard but also giving yourself a break. Continual pressure to always be working will only destroy your enthusiasm and motivation for your company and the overall process.

You can Ignore obligations

There’s a common misconception that the rules governing businesses only apply to large companies and small, start-ups can place them on the back burner until they’re ready. This is one of the biggest mistakes that you can make. Any company, no matter how large or small, have to register with HMRC and file tax returns. Depending on the type of business you have, you may also need to register with Companies House. There may also be specific insurance plans or health and safety certificates, which you need to get. Ignoring any of these obligations can lead to large fines and penalties, it’s not worth it.

If you want to start your own company and you have the resources and drive to do it, give it a go. Don’t let self-doubt or common misconceptions stop you. Just make sure to take things slow and follow the rules.