One of the biggest mistakes made by new entrepreneurs is listening to the common myths about entrepreneurship. Believing inaccurate information can keep people from trying an idea that would become a success. Here are five of the most common and harmful myths that entrepreneurs wrongly believe.
- Entrepreneurs Are Always Driven By Money
If a product or service looks like it will draw a huge profit per sale, it may not be profitable on a long-term basis. However, a product that yields a fair profit per sale but will be in high demand is one that will succeed. The key to remember is that solving a problem is what drives entrepreneurs and not the highest profit per unit or sale. If a product or service solves a problem, the sales will be steady. When developing any idea, an entrepreneur should be sure that it addresses a pain point for the intended market. The button device that alerts emergency response personnel when an elderly person falls is a profitable example of something that addressed a pain point and solved a common ongoing problem among the elderly population.
- Entrepreneurs Like To Take Risks
Although every venture is a risk, entrepreneurs do not like to take uncontrolled risks. This is part of the reason why they are entrepreneurs. They like to have more control over their own success. By testing, modifying and developing ideas, they can pinpoint the profitable ones and can have multiple projects going at once. If one does not work, they still have other avenues of income. To entrepreneurs, being employed and having only one job is the biggest risk. If a person in such a situation is fired, he or she loses their sole source of income.
- Entrepreneurs Rely Mostly On Luck
This is one of the biggest myths. It is easy to look at a pioneering product and think that the inventor was lucky to develop the idea for it, and it is easy to assume that the creator of that product was lucky to make so much money from it. Entrepreneurs are not simply geniuses who have a stroke of luck or multiple strokes of luck. They listen, watch and think. They pay attention to common complaints. When they catch themselves complaining about something or getting annoyed with it repeatedly, they think about what they can do to fix it. Getting their ideas developed and on the market is a tough process. However, they persevere until they succeed.
- Entrepreneurs Are Industry Experts
While some entrepreneurs are experienced in the industry related to their business or product, some are not. Such individuals succeed by consulting with experts in other industries to develop their ideas. However, some of the best ideas simply come from pain points of non-experts. For example, the CEO of Groupon was not a medical expert. However, he developed an idea for a database program called Tempus that collects and analyzes detailed genetic data and therapeutic data from cancer patients, and it matches similar profiles to yield more successful treatment suggestions for individuals. The developer got the brilliant idea for the database because he was frustrated with how little information was available about different types of breast cancer treatments after his wife was diagnosed with the disease. He worked with a tech expert to develop his idea. The popularity of Tempus has grown, and it has helped hundreds of doctors form successful individualized treatment plans.
- Entrepreneurs Have Plenty Of Freedom
Since entrepreneurs do not have to punch a time clock every day, many people assume that they have absolute freedom and do not have as many responsibilities as employees. However, entrepreneurs have more responsibilities. They do not get employer-sponsored health insurance, paid time off, sick time or other benefits. If they want time off to take a vacation, they have to work harder. They pay for their own health, life and disability insurance. They do not have the luxury of going home to relax after a set number of hours at work. Entrepreneurs may work odd hours, and their home is usually their workplace as well.
Many entrepreneurs feel that they are chained to their projects. While they embrace the work-related challenges, the heavy load of responsibilities can be emotionally challenging. Entrepreneurs may have periods of financial hardship as they develop ideas or take new paths. They may worry about a home foreclosure, medical bills for an unforeseen illness or a temporary disability after an injury. Life’s unexpected problems can be bigger hurdles for someone who is not on a payroll. However, most seasoned entrepreneurs say that they would not choose a payroll-based job over paving their own path to success regardless of hardships.
New entrepreneurs who know that they are ready to embrace the challenges of entrepreneurship should proceed wisely. The emotional rewards for attempting to develop an idea are good, and those rewards are even more satisfying when an idea is successful enough to produce significant financial gain. The key idea to remember is that people who can develop long-term solutions to common problems are the most likely to succeed.
About Sawyer Howitt
Sawyer Howitt just finished high school and started his first year of college at the University of California, Berkeley. He is majoring in entrepreneurial finance. Although he is young, he understands the extensive financial and operational needs of businesses. He also understands the importance of brands and how consumers relate to them. From professional presentations to detailed spreadsheets, Sawyer Howitt has been involved in a wide array of important business tasks at Meriwether Group. He started working for the company in early 2017 as a project manager and successfully balances his work life with college. Sawyer is especially interested in managing projects that will help reshape the future of commerce.
In addition to his accomplishments as a young professional, Sawyer Howitt speaks Arabic and Spanish. He has taken several philanthropy courses as well. Sawyer is passionate about fighting for women’s rights and youth mentoring. Also, he led a study group of international students. Sawyer’s father is a celebrated entrepreneur, and he has taught his son many useful steps for success. Sawyer Howitt enjoys learning from the seasoned entrepreneurs at Meriwether Group and wants to help other young entrepreneurs grow their own companies in the future.
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