5 Small Business Myths That Can Hold Your Business Back

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According to the U.S. Small Business Administration, small businesses make up 46.4% of the private business market. This means despite the number of businesses that fail, millions of small business owners are growing and succeeding. You could be one of them.

But starting or growing a small business can be daunting. Will you fail? What if your gamble doesn't pay off? Will you end up in debt and without an income? If fear is holding you back, you might be falling victim to these common myths about small businesses.

1. You need a lot of capital to get started

Not all businesses have high start-up costs. In fact, most companies can be started with a few hundred dollars or less. Sure, if you want to build a unicorn software company or develop and sell a high-priced tech item, you might need a lot of start-up capital.

But most small businesses don't require millions from angel investors. Think about how you can start small and build over time. If you want to open a restaurant, maybe start with a food truck. If you want to build an accounting firm, begin by taking on a few freelance clients. Don't let the lack of capital stop you from getting started.

2. You should avoid debt at all costs

Debt isn't inherently bad. Debt taken on with a clear vision and solid plan can be the key to long-term growth. Being strategic about taking on debt can limit the risk of taking out loans.

First, look for grants that you won't have to pay back and make sure you're in a position to pay any business loans back by developing a growth plan. But if you need capital to start or grow your business, the right business loan can give you access to capital. Don't assume all debt is bad debt.

3. You have to follow a detailed business plan

You do need a business plan, but you don't need to spend four months writing out a meticulous 40-page business plan that covers every conceivable process, marketing strategy, and funding option.

Instead, spend a week or two writing out what services your business will offer, who you'll offer those services to, and how you'll find customers. Including information about processes and sales metrics can be helpful, but don't let the process of writing a business plan stop you from getting started.

I heard a phrase early in my career that really stuck with me: "Done is better than perfect." Keep that in mind as you write your business plan.

4. Marketing is all or nothing

Marketing is key to business success, but it's not an all-or-nothing game. You don't need to be on every social media platform, invest in search engine optimization , build an affiliate program, and land spots on your local radio station. In fact, trying to be on all the marketing channels at once is an excellent way to burn out and waste resources.

Think about where your customers are and focus your efforts there. For example, if you own a power-washing business, customers are likely on Facebook and NextDoor looking for referrals, not LinkedIn. In some cases, word of mouth might be a better strategy than paying for marketing. Focus on one or two marketing channels that make sense for your business and your customer base.

5. Low pricing is the best way to stand out

While low pricing might initially attract customers, it often results in razor-thin profit margins and is unsustainable. It might also cause customers to assume your offering is of lower quality than your competitors.

To attract customers, focus on providing quality products or services and excellent customer service. Explain the value your business offers and how it will improve their lives or make their jobs easier. If pricing really feels like a stumbling block, consider offering a short-term price reduction, like a discounted first service or a free consultation.

There are a lot of myths about owning a small business . While some of them are true, like the freedom that comes with being your own boss, some myths will limit your success. By adopting a more flexible and strategic approach to taking on debt, marketing, writing a business plan, and setting prices, you'll build a stronger, more resilient business.

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