There are several facts that go in circles when it comes to start-up talks. There are hula-boos, challenges, facts and notions that after interpreted and often said in general about how to start a start-up or to run it further. But there are myths as well, and they affect the real mindset of brooding entrepreneurs.
Here are the 7 most common myths about start-ups that are needed to be burst right now:
1. A real startup needs investors to get off the ground.
In fact, research by Fundable shows that less than one percent of all startups are funded by venture capital and angel investors.
Bootstrapping allows you to maintain full control of your startup strategy, retain maximum equity, and avoid the time delay and energy spent to attract outside investors. The successful entrepreneurs I know who bootstrapped are the biggest proponents of this approach.
2. You need a business degree to start a venture today.
The real value of a college education is in learning how to learn since markets and business models are changing so fast. Business strategies are best learned from experience.
In today’s world, more successful entrepreneurs have built on degrees in engineering rather than business. Examples include Larry Page at Google and Jeff Bezos at Amazon.
3. Working in a corporate world reduces your startup potential.
On the contrary, early corporate training courses, potential future customer contacts, and getting real-world marketing experience all are extremely useful for budding entrepreneurs.
In addition, a regular paycheck and benefits help you build up resources before and between startups. I personally learned much about hiring and managing people in my big company experience, which helped me later in various startup roles.
4. Most successful entrepreneurs are young and crazy.
According to the Kauffman Foundation and other studies, the average entrepreneur is actually thirty-nine years old, and the success rate of entrepreneurs over forty is five times higher than that of entrepreneurs under thirty.
The percentage of startups created by entrepreneurs in the 55 to 64 age demographic is now growing faster than any other. I find people in this age range are also more willing to admit what they don’t know and ask for help.
5. You need quirky and more unheard-of ideas to succeed.
The idea that novel products with minimal value to customers will somehow start a new trend is simply false.
There is no substitute for market analysis, customer interaction, and attacking a real problem. Disruptive market changes take more time and money and have the highest failure rate.
6. Most successful startups spring from local incubators.
An incubator may get you over initial hesitations, by connecting you with peers, advisors, and guide you through the process of setting up a business.
I find that most good founders proceed faster on their own, with less drain on their time from peers and programs, and no equity dilution.
7. All successful businesses start with a business plan.
In reality, Microsoft, Apple, Google, Facebook, and many others achieved success before they had business plans. The majority of startups, who don’t seek outside investors, most often choose to explore alternatives in real time, without a written plan to guide them or slow them down.
Therefore, it’s never too late to step into a new role where the definition of “work” is something you love.