U-Turn Ahead

If you’re considering starting your own business and need some advice, just ask the next person you see. Everyone has advice on how to start a business. “You can start a business by just using your credit cards.” “You need at least $500,000 to start a successful business.” The advice is as varied and the individuals giving it.

So, what does it really take to start a business? And how do we tell what is myth and what really works? In his guest post on How To Change The World, author and professor Scott Shane offers the Top Ten Myths of Entrepreneurship. In he article, he corrects myths such as:

• It takes a lot of money to finance a new business.
• Venture capitalists are a good place to go for start-up money.
• Banks don’t lend money to start-ups.

I believe one of the most important myths that Shane addresses is the myth that “most entrepreneurs start businesses in attractive industries.” In his post he points out that many new business startups are in industries with a high percentage of failure. Selecting the right industry is critical to success. And Shane also makes the point that starting a business is difficult and often not very profitable. He claims that “the typical profit of an owner-managed business is $39,000 per year.”  To read the entire article, click here>>>

To get trustworthy information about starting a business, without the myths and speculation, talk to real business owners or organizations that work with new businesses. Two great FREE sources of information are SBA and SCORE. The SBA, or U.S. Small Business Administration, is a branch of the U.S. federal government established to help small businesses succeed. The SBA website is a great source of information. SCORE, actually started by the SBA, is an organization of volunteer business owners and retired executives who provide counseling and advice for those starting a business. Similar resources exist in Australia at business.gov.au and in the U.K. at BusinessLink.