5 Myths Of Entrepreneurship
There are a lot of myths about being an entrepreneur; most spawned by the media. While some these are true, others are patently false. The following are the top five myths:
Myth #1: Entrepreneurs want money. Period.
A lot of people think entrepreneurs are in it solely for the money. This is true to an extent—fear of poverty, or simply financial insecurity, might well goad anyone to greater heights, and there are some who do it for the cash, but for most people, money is not the be-all and end-all.
A lot of entrepreneurs have ego and/or emotion as their primary motives, many don’t maintain the lavish lifestyles expected of them, and most consider money as a way of keeping score.
Myth #2: My gain, your loss.
People often refer to success in business at the cost of someone else. What they mean, obviously, is that if an entrepreneur is winning, someone somewhere has paid the price. This makes it seem like there has to be a winning and a losing side in every business deal. This is sometimes called the ‘zero-sum game’.
In actual fact, entrepreneurs are creative thinkers. Rather than play for a ‘zero-sum’ result, and contrary to popular supposition, they often try to work out a compromise that means everybody leaves the table satisfied.
Myth #3: The greater the risk, the greater the reward.
A lot of young entrepreneurs, having heard this, accept it as gospel truth. A relationship between risk and reward is complicated and in no way reducible to a simple statement.
Risks in business don’t equalize jumping off a cliff in the dark: knowledge, experience, wisdom hard work and perseverance modify both the ‘risk’ and the ‘reward’.
Myth #4: Entrepreneurs get rich fast.
The rise of ‘dotcom millionaires’ definitely makes it seem like entrepreneurs make a quick buck, but you should remember nothing is as easy as it seems.
You may think that entrepreneurs get extremely rich extremely fast, but a lot of hard work goes into developing the ideas/products that make them rich.
Myth #5: A good business plan is the entrepreneur’s critical roadmap to success.
This has more truth than most of the other myths, as you’re unlikely to be given loans without a solid business plan. However, a loan does not in any way equal good money. Business plans are guidelines, yes, but to succeed, you need a lot more.
Good post (again)! Not all entrepreneurs are in it for “the money” although the “money” is always a boon. I know of a doctor who could have retired nicely in Australia and played golf everyday, but he returned to Singapore for the sake of helping people become more healthy.
He even allows the poor to use his medical devices on a “pay-whatever-you-can-afford”. His devices are presently used in patients of public and private hospitals and that’s where most money comes from (from patients who can afford them). 30 minutes of use of the device purges toxins and is equivalent to running 2.4km.
Merry Christmas Stanley!
Great Post Stanley.
I would like to think I am not an Entrepreneur for the money. I love the freedom that this lifestyle affords me.
Jim
Everything is true except Myth #5. Every business should have a business plan and not necessarily to obtain outside financing. An informal business plan gives you a starting point and helps you determine if your business idea is feasible.
It also provides a working plan than can be used over time. As your business situation changes you update your business plan. It also helps provide focus as you start your business and most importantly it helps you learn some of the basic business tools even the Fortune 500 companies use daily.
One such tool is the SWOT analysis. (Strengths – Weaknesses – Opportunities – Threats Aanalysis).
There are many reasons to complete an informal business plan and in the long run it could save you money if you determine the business idea you have is not feasible.
Hi Stanley,
A wonderful write up and very informative.Expecting some more
Thanks
Excellent post. I particularly like the first one because I can relate to it. People in my family seem to think I am all about the money because I have been an entrepreneur for so long but it’s not really about the money. It’s about having control over my own financial destiny as opposed to an employer.
Very nice.
I’d also recommend reading – The E-Myth which has common myths that entrepreneurs need to watch out for.
– Sam
@Dan You definitely need a rock solid STRATEGY… what I was trying to say here is that business plans (with the purpose of raising money from banks, VCs etc) is not the ultimate critical roadmap. It’s about providing something of value, building a proper business model and hard work. Not just using the business plan and try to raise money.
Stanley, I think I know where you were going with #5 (about the business plan) — and if I’m right, I agree with you. A more important skill to have rather than a plan (which is also important, but the map isn’t the key) — is the ability to adapt quickly to changes, and make fast decisions toward your overall goals.
For instance, if your goal is to earn a set amount of money doing a specific thing, then your plan has to include activities that actually get you there — while being flexible enough to allow you to seize REAL opportunities that can get you there faster (not help you learn things that may or may not have anything to do with your goals.)
I’d add another item to your list:
Another Shiny Thing isn’t going to improve your odds. Avoid the too many shiny things syndrome at all costs!
Thanks!
Nancy