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Three Common Business Myths Exposed

Mar 17, 2008
I can remember seeing many ads online that made me think that, if I joined this program or that opportunity, I would be living the good life in just a few weeks or so. They picture lavish estates, expensive cars, beautiful women, and even private planes. You're nodding your head. You've seen them too?

Having your own business has been part of the American Dream for quite a long time. Many people dream of leaving the rat race to build their own business empire. Sadly though, many of these people go into this with many misconceptions and false beliefs. They soon discover that many of these myths are just hype and quickly become disillusioned.

My belief is that this is one reason so many people fail. Let's explore some of the most common myths.

Myth # 1: "Once I have my own business up and running, I will have more free time on my hands." I wouldn't be planning that vacation any time soon if I were you. The stark reality is that it takes more time to get a business off the ground and running than it does working your day job. It takes far more effort and drive than you might think.

As a new business owner, you will have to be manager, financial officer, advertising planner, and laborer. That's just the tip of the iceberg! Once you get that business up and running, you will have to spend alot more time than you think in keeping it running.

You also have to have a business plan. Without one, you are sunk before you begin. Organization and planning are key to any successful business venture.

Myth # 2: "I can get a grant from the Federal Government to start a business." I have to admit, I bought into this one too. I really did some digging to find that agency. The truth is, the federal government does not have any such agencies that directly lends money to any business.

Some states do have have special programs designed to help people with disabilities, veterans, and minorities. BUT, these organization have very specific rules and guidelines that must be adhered to. Many of these organizations will expect you to have a well thought out business plan.

It is important to remember that each state and county has different approaches to this. Many can help you, by directing you to other resources that can help you along the way.

Furthermore, any website or offer that guarantees government grants should be treated with skepticism. Remember the old adage, "If it sounds too good to be true, it probably is."

Myth # 3: " I can write everything off come tax time." Thinking like this can land you an IRS audit faster than you might think. The IRS has really started to look at iffy tax deductions, including business and job related tax deductions.

The best approach to this issue is to seek the advice of a qualified tax preparer or CPA. They can best guide you through the tax deductions process and show you what you can claim and what you cannot. Should you get audited, most offer the additional service of going with you to meet the Taxman.

Many people have bought into a number of myths and have lost alot of money trying to build a business. Before anyone seeks the "American Dream" of starting or owning one, they should seriously research the idea thoroughly before taking the plunge.
About the Author
Ryan Smith is the author of the hot, new, blog "The 10 Commandments of ID Theft Protection" Learn more at http://www.e-profitsubmissions.com/wordpress
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