4 Myths About Owning a Small Business
Photo Credit: Christina Jones Photography
What’s it really like owning a small business? You’ve probably been told all your life that owning a business is hard and takes a ton of money. But now TikTokers make it seem like the easiest thing in the world.
So, what’s the truth?
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4 Myths About Owning a Small Business
Naturally, owning a small business looks different for everyone.
A 20-year-old that opens up a sticker shop and goes viral may have done well for a few months— but there’s no telling how successful that business is today.
Likewise, a startup that may have been struggling to raise capital during its first few years can turn into a 20 million-dollar company.
I don’t know why, but there are so many small business myths online. So I thought I would address them for you today based on my 4 years as a business owner.
Myth #1: Startup Costs are High
When I started Babe Crafted, the startup costs were very, very low. This is probably why I was able to quit my job within a week of launching.
That was in 2018. With today’s digital opportunities, I can argue that there is even less of a need for capital when it comes to owning a small business.
At least if the majority of your business takes place online.
There are plenty of free tools to get you started. You can freelance on Upwork and Fiverr, collect payments via social media, and spread the word about your digital business through word of mouth.
You can even start your own print-on-demand t-shirt business using a combination of free tools like Printify and Etsy!
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Myth #2: You’ll Fail
Photo Credit: Christina Jones Photography
You’ve probably run across a couple of different numbers of how often new businesses fail. Looking at statistics from the U.S. Bureau of Labor Statistics (BLS), the failure rate for new businesses is:
20% of new businesses fail in the first two years
45% of new businesses fail in the first five years
65% of new businesses fail in the first ten years
Basically, the longer you’re in business, the higher chance you have of “failing.” But what’s that saying?
You miss 100% of the shots you don’t take.
A 65% chance of failure after ten years looks a hell of a lot better than a 100% failure rate because you never started at all.
And besides, the main reason businesses fail after 10 years is because they fail to pivot and change with the times. That’s really all there is to it.
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Myth #3: It’s Easy To Own a Small Business
It’s incredible to me how many people have managed to start their own businesses. Since 2020, the U.S. has seen significant growth in small business startups.
The U.S. Bureau of Labor Statistics (BLS) calls it the COVID-19 Small Business Boom. They found that “the increase from 2019 to 2020 in total applications exceeds 20 percent, which is double the growth rate in any other year.”
Despite these incredible numbers (and the inspirational videos on #smallbusinesstok), people aren’t talking about the mental rollarcoaster of owning a small business.
What you don’t see is:
How challenging it can be to find other small business owners who understand your day-to-day.
How hard it is to make enough money and start hiring a team (so you can take that paid vacation again).
What they don’t tell you is that starting a business is easy. Owning a small business is hard.
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Myth #4: Your Competition is Your Enemy
Photo Credit: Jessica Fredericks Photography
Part of starting a business is doing competition research. Part of this research is to find out:
Who/how many similar companies you’re up against
where can you fill in the gap in customer needs
How can you stand out
Methods to market your business
But that’s where your competitive streak should end. Your competition is not your enemy.
I firmly believe in community over competition. In fact, it’s what my entire business is based on.
Instead of staying away from other local jewelry companies, social media agency CEOs, or food truck owners, you should collaborate with them.
Part of owning a small business is finding your tribe. Your competition should be included in your tribe.
Not only does it open up doors for mutually beneficial collaborations, but these are the only other people who know what you’re going through.
Don’t take it for granted.
Need your own small business tribe? Join our community of 150+ women entrepreneurs!
Disclaimer: The business owners featured in this blog are members of Babe Crafted (at the time of publishing).
