Many people out there dream of starting their own business – but are too intimidated to do so. Their concern stems from various factors, including certain common misconceptions around the world of small businesses.
It is essential to tackle these misconceptions head-on by debunking the most common finance myths. By helping potential business owners understand the truth, we might just see more businesses opening up.
Myth: You Need Lots of Money
Most people tend to assume that all businesses, even small ones, need a lot of money to get started. While having significant starting capital is undoubtedly beneficial, it is by no means a requirement.
Many successful businesses have started with a shockingly small amount of money. According to Business News Daily, one can even create a company with as little as three thousand dollars.
Myth: Small Businesses Rely on Loans from Banks
Another common misconception about small businesses is that they get all of their funding and loans from banks. This implies a certain amount of reliance on banking, which is not entirely accurate.
Yes, receiving a loan from a bank is always an option. However, it is by no means the only option. Small businesses have the option to apply for grants, approach crowdfunding opportunities, and find investors- just to name a few alternatives.
Myth: Small Business Owners Can Write off All Expenses
This is another common misunderstanding of how small businesses work. Yes, small businesses can deduct many expenses beyond what the average person would be allowed to do – but certainly not everything.
These deductions are limited to business expenses – meaning that they can not be used for personal expenses, no matter what common perception is.
Myth: Small Businesses Don’t Have a Budget for Tech
Another common myth is that most small businesses don’t have the money for new and emerging technologies. This is simply untrue – especially for small businesses that intend to specialize in technology.
In truth, modern technology can save small businesses quite a lot of money, making them the most financially sound options out there. With that in mind, it becomes financially irresponsible to avoid investing in them.
For example, all businesses need a way of tracking expenses. These days, there are hundreds of applications out there that work to streamline the process. Rather than paying a team to handle the accounting process, a piece of tech can flawlessly step in and handle this problem.