In this article you will find 5 myths of entrepreneurship that prevents you from seeing the whole picture from the beginning. Let’s take them down!
Michael E. Gerber in his book E-myth popularized the idea that there are myths that many entrepreneurs take for granted when starting a company. This author describes that these entrepreneurs have technical skills instead of business skills, which later results in a high failure rate because both skills are equally required to increase the chances of success.
As a mentor to several entrepreneurs, I can verify this phenomenon and despite the appearance of new trends and methodologies in entrepreneurship that lead to new ways of doing business, this situation remains latent.
So from my own experience there are several myths of entrepreneurship that must be disproved.
5 myths of entrepreneurship that keep you from success.
Myth 1: Great technology will lead us to success
Let me tell you that this is a very common mistake in novice entrepreneurs, who focus on creating their value proposition for successful businesses with a high technological content. Clients and investors very often perceive as risky the use of an innovative technology which does not solve a need. Today successful products are the result of satisfying a latent need in the market.
“Customers are not interested in your solution, they are interested in their problems!” Dave McClure of 500 Startups
Myth 2: If we create a good product, investors will come
Investors are looking for a business model that works, not a standalone product. These people want to know if you have the necessary clients to be able to generate a source of income that allows you to recover the investment. Many of the investors want to make sure that behind this business model there is a committed team. As I noted earlier an education in general business concepts is important.
“Your task from day one is to build your business model” alex cormani
Also read: The Canvas business model, the first step to create your company
Myth 3: We need money to start.
This myth happens a lot when I ask my students how they are going to get the financing they need to start their successful businesses. More than 80% of them comment that they will request the resources from a government fund that supports entrepreneurial projects. Let me tell you that in some cases the cycles of this type of financing can last between 1 or 2 years to be approved, which would make you waste time starting your company.
Fortunately, there are new agile methodologies such as lean startup that can help you start a company when resources are limited.
“Fail fast, fail fast… but most of all, fail cheap.” Anonymous
Also read: How to start a business with no money
Myth 4: Our products will sell themselves.
In the digital world, all people use marketing and social networks to find solutions according to their needs. Even a good product will fail if it does not have a good marketing, communication channel and a different value proposition. For this reason, some of the main tasks for any company are: differentiation, marketing or commercialization.
“In the end you are different or you are cheap” Guy Kawasaki
Myth 5: Everyone is my customer
The entrepreneur at the beginning wants to sell to everyone and at least at the beginning it is not possible since you will waste resources focused on promoting the benefits of your value proposition to supposed clients who do not have the need to acquire it.
It is important at the beginning to focus on a market niche that is attractive and profitable in which you know the customers. You need to know what their worries, fears, needs and problems are in order to empathize with them. The main thing is to be a leader in your market niche and then little by little venture into adjacent market niches.
“Entrepreneurship is by niches” Steve Blank
Every entrepreneur must have education in business models. This involves the process of creating, capturing, and delivering value to your customers. More than finding an innovative product, the good entrepreneur seeks to find a latent need in the market and create something to satisfy it, seeking a benefit for society.
These myths of entrepreneurship are the product of my experience but I know that there are several more depending on the experience of each one.
What myth would you add to the list?
And remember, if you are really interested in creating your own business, you can read our book “How to create a company while working: Discover how to manage your time, manage your money and motivate yourself while creating a company and working for another” , where you will find all the information you need to found your own company, without having to leave your job.
