Founding a small business is a tricky, complicated process, and many owners and entrepreneurs can't do it alone. This is why the crucial insights of colleagues and professionals are so helpful, from financial tips to investment advice. However, not everything is to be believed, and falling for a startup myth can have disastrous effects on the company.
With that being said, a small business owner should always take the time to identify the fact from the fiction. Running a fledgling firm is hard enough as is – there doesn't need to be any misinformation further leading goals astray. So, here are a few common myths that should be avoided in order to achieve success.
Bigger isn't always better
One of the myths most often thrown around in small business circles is the idea that bigger is better. Well, this isn't always the case, according to Entrepreneur magazine. While super-sized stores work well for the large corporate chains, smaller companies can actually create more problems than needed by aiming too high.
Instead, the better approach would be to focus on customer service, the news source noted. A small business is in the position to closely interact with all consumers, and these specialized relationships can go a long way for the financial plan. Large companies bring a lot of red tape and other bureaucratic nightmares, something that a startup should be able to dodge. All in all, avoiding a big business atmosphere can be extremely beneficial for everyone involved.
A full-time staff isn't required
One of the other most common startup myths out there is the idea that a full-time staff is required. Actually, this isn't true, and the best small businesses can operate with part-time or remote workers.
According to WeWork, a better option is to hire online freelancers during the early stages. Full-time, expert staff will be needed eventually, but in the early going this type of employee can actually be a detriment. Hiring people for a short period of time – only when they are needed – is a cost-effective and efficient way to run a company. In addition, that will still allow for growth and leave enough money left over at the end of it all to make the switch to more permanent staff when the time comes.
Overall, it is important to remember that running a small business may seem challenging, but careful planning and some insider information can make the process easier. Most of all, it is a must to avoid common myths and pieces of misinformation in the industry.