| a business means you will have more free time. | | | | Failure is the opposite of success. |
| With this myth, the exact opposite is usually true. | | | | In life we are all taught that failure is the opposite |
| Nearly all-new business owners find that they | | | | of success. However, the opposite is true when it |
| actually have much less free time when they | | | | comes to small businesses. Failure is actually an |
| open a business — especially in the | | | | essential part of success. When you open a |
| beginning. Yes, your schedule will be more flexible | | | | business, you are embarking on a new journey, |
| but it will not be lighter. Being a business owner is | | | | and you learn through trial and error. It is unlikely |
| more of a life style than a job. If you are going | | | | that any business is going to be immensely |
| to be successful, you will probably need to | | | | successful from the start. There are going to be |
| dedicate most of your time to it. | | | | failures and bumps along the road. |
| You should not worry about a business plan. | | | | Watch employees closely or they will slack off. |
| People often mistakenly think that if they do not | | | | As we mentioned in last week’s tips for |
| need to secure funding for their business, it | | | | managing employees effectively, you cannot |
| means they should not worry about a business | | | | expect your employees to be productive 100% |
| plan. Technically, you do not need a business plan | | | | of their shifts. By allowing employees to have |
| in this situation, but you should still compose one | | | | some time to breathe they will be more efficient |
| for your own purposes. Creating a business plan | | | | when they are working on a project. The last |
| will allow you to research your industry, organize | | | | thing you want to do is cause employees |
| your thoughts, and set your long-term goals. | | | | unnecessary stress by breathing down their |
| To get customers you need to be cheaper. | | | | necks. |
| New business owners frequently think that they | | | | If you build it, they will come. |
| need to have the cheapest prices if they want to | | | | Small business owners often invest all of their |
| get customers from competition. This is anything | | | | money into opening their business and forget to |
| but true. Look at stores like Macy’s or | | | | save funds for marketing purposes. People think, |
| Nordstrom’s — they do not have | | | | if I open my store, people will naturally just |
| cheap prices but still attract customers. You do | | | | come in off the sidewalk. Uh, not true. You |
| not necessarily want to overcharge your | | | | might get a few walk-ins if you have a great |
| customers, but do not take a loss in order to | | | | location, but it is essential to advertise your |
| offer cheap prices. | | | | business if you want to attract new customers. |
| If you cook well, you should open a restaurant. | | | | You can write-off everything. |
| How many times have you overheard someone | | | | Too many people learn this myth the hard way. |
| saying, Wow, you are a good cook. You | | | | If you take too many business deductions it |
| should open a restaurant? Little do they know | | | | sends a huge red flag to the IRS and could cost |
| that opening a restaurant requires a lot more | | | | you thousands in unpaid taxes and fees. A general |
| work than just cooking the food. As any small | | | | rule for write-offs is to ask yourself, would I |
| business owner will tell you, there are dozens, if | | | | make this purchase even if you did not have a |
| not hundreds, of hurdles to opening a business. | | | | business? If the answer is yes, then the item |
| Then, after opening the restaurant, business | | | | you are purchasing is probably not a business |
| owners typically end up hiring a chef and focus | | | | expense. |
| entirely on operating the business. | | | | The customer is always right. |
| Good friends will work well together. | | | | This is one of the oldest — and most |
| Every year, friends forming partnerships open | | | | incorrect — myths about running a small |
| hundreds of new businesses. Unfortunately, just | | | | business. No, the customer is not always right. In |
| because you are good friends with someone does | | | | fact, they are frequently wrong. If you always tell |
| not mean you will work well together. Forming a | | | | customers they are right, then you can wind-up |
| partnership with another person is a huge | | | | losing thousands of dollars to customers who take |
| commitment. You need to be 100% sure that | | | | advantage of you. There is nothing wrong with |
| you will be able to work together before you | | | | correcting a customer who is in error. |
| take this big step. | | | | |