The Business Myths

Here are some business myths that I’d like you to understand. Whether you are planning to start up a business or you are currently having one, here are the false beliefs that can guide you to grow your business.

1. The business is enough to sustain a family. This is the common mindset of some people who are planning to start up a business. Some of them quit their jobs and just focus on their business. Well, somehow, it depends on the number of people that the business will support. If you are single, then this will most likely work for you. But having a family and having one business alone cannot sustain all your family needs except of course if your business is in real estate, having number of rental properties, then that should be enough.

However, if you’re capital is limited and you have start up a business, I suggest that you don’t quit your job yet or at least have another investment. I know that being hands on in the business is important but if it is the only source of income, sooner or later, it could lead to bankruptcy. My advice is do not depend on your business alone. Find some other sources of income. As much as possible, do not touch the business profit until it is fully established.

2. The business’ principal capital will grow on its own. Wrong. Some think that the initial capital is enough to make the business grow, but this is just another myth. My mother-in-law who’s basically handling the most successful financial business in the town told me that she adds money to the principal quarterly. It’s like you are investing again to your existing business to improve and let it grow. However, letting the initial capital grow on its own is fine too but it results to slow progress. If you want your business to generate money for you faster, then raising your capital is necessary.

3. Hiring people will just cost me more. It depends. I stopped hiring people for my food business because I thought that the profit is not even enough to cover their salaries. However, as I became full time on my business, I had to stop doing other jobs that I am capable to do which generates me more money. Now, I hired the people again to do the job that I usually do in the business while I do other works to sustain the family needs. I know that I am basically paying these people from my job and not from the business but I don’t see it that way. I think that I am paying them to do something for me because my time is more valuable. And even if I’m paying people, with the freedom I have to do other works, I still gain more. However, supervision is still necessary to keep you in the know and updated to your business. --M.D.