I blogged recently about the myth of small business failure. That got me thinking about other myths that are prevalent in our world. 

Here we go…

Myth 1: No one will steal your idea

I have personally had an idea stolen. It happens everyday. From venture capitalists stealing ideas and passing them on to their portfolio companies to your boss taking credit for something you thought of - ideas are stolen all the time. If you don’t believe that ideas are stolen then I have a great piece of beach front property to sell you in Arizona.  

Funny that this myth is perpetuated by venture capitalist more than any other group. Why do you think that is?

Myth 2: If I run my own business then I’ll be my own boss

Everybody has a boss. Everybody.  Now, that boss may not be the fat guy in the corner office who scowls at you every time you walk in with a question. A “boss” as defined by Webster’s can mean several different things like “master of”, “direct” and “control”.  If you start a business you may be the person running the shop but you still have a boss. Personal expectations, spouses, addictions, taxes, your lifestyle and many other “bosses” can rule and control your life just like the fat man in the corner office.  

Myth 3: You don’t need a business background to start a business 

This is both true and false. Any bozo can start a business. All you have to do is file some documents with the state and you’re off to the races.  Frankly, understanding how businesses work gives you an advantage as an entrepreneur. You don’t need an education in business but having that foundation helps as well.

I cannot overstate how much experience and any relevant knowledge no matter how small will help you when starting a company. Knowing what you are doing buys you more legitimacy with clients, shareholders and employees than any other thing.

My father-in-law is a successful oral surgeon.  He once told me that he thought all doctors thinking of going into private practice should have an undergraduate degree in business.  My father-in-law is smarter than most doctors. He realizes that there are two parts to every medical practice: The business part and the part that fixes your ailments. It’s his belief that if most doctors understood the business side of their business that the medical industry would be more efficient and cost effective.  Furthermore, doctors would probably make more money than they already do.

Make learning continuous in your life – always be learning something. Read books, blogs and network with the right people!

Myth 4: You should turn your hobby into a business

Hey, if it’s what you love then it must be a great business idea. Right? Wrong! One of the most common mistakes made by people is taking some hobby and turning it into a business. If you love motorcycles, that doesn’t mean you go out and start a motorcycle shop. Just because you bake the best loaf of bread this side of the Mississippi doesn’t mean you run out and start a bakery.

Just because its your hobby or something you are really good at doesn’t mean you will enjoy the work of that hobby day in and day out for the rest of your life.

We’ve already discussed the principle but its important to mention it again. There is the side of your business that builds and markets a product. There is another side that manages the details of the business that all businesses must manage. If you understand both sides of the business your chances of success will increase dramatically. 

Myth 5: If you want to get rich then start a business

If you want to get rich then get really good at sales. Being a true blue genuine salesperson is the only profession I know of that you can consistently make a six figure salary without going to ten years of school.  While many people do get wealthy owning their own company it’s no guarantee of wealth.  Personal wealth is determined by your desire and drive more than any other factor including profession and education.

Myth 6: I can’t leave my secure corporate job to start a company

Last year hundreds of thousands if not millions of American’s lost their “secure” corporate jobs.  If you believe you have job security then you are either in denial or ignorant. I worked for a “secure” software company for three years. I avoided 11 “rif’s” or reduction in force – formal layoffs before they finally got me. At least I had my guaranteed paycheck for three years - Right? Everyday I walked in the door I knew it could be my last. It was a ridiculous way to make a living.
 
Myth 7: You can’t beat a Fortune 500 company. 

Keep in mind that Fortune 500 companies aren’t as slow and out of the know as most people think they are. Fortune 500 companies didn’t get to be their size by sucking at business. Most have a perfect knowledge of the marketplace and they also have resources you could only dream about. 

Now, that said, you can take on a Fortune 500 and live to tell about it. Wal-mart killed K-Mart. Google is trashing Microsoft in search. In turn, Microsoft killed Apple in the 80’s and today Apple has a good shot at eventually taking down the likes of Dell. There is a cycle of innovation. If you enter the cycle at the right time with the right product you can rock a FF 500’s world. 

Myth 8: Right now is the right time to start your business

The right time to start your business is when you are personally ready to start the business.  When are some good times not to start a business? Here are some examples:

·         Going through a divorce
·         Spouse or child is terminally ill
·         You are running another company
·         You have a terminal illness
·         You have just filed for bankruptcy
·         You are in a state of depression
·         You are addicted to gambling, drugs or alcohol 

Myth 9: Entrepreneurs do whatever they want when they want

If you start your own business you will be subject to long hours, customer demands and deadlines. You will also have stresses on you that you did not encounter when you worked for someone else like meeting payroll, managing accounting and paying taxes to name just a few things. 

The principle of work applies more in a start up than anywhere else in the business world. Get ready to roll up your selves!

Bonus Myths:

Entrepreneurs don’t sleep, can’t concentrate, are bad at details, can’t manage, don’t get finance and dream all day long.

These are just dumb misconceptions about entrepreneurs. Some entrepreneurs may fall into some of these ideas but most don’t. I have a difficult time concentrating but I try to get a solid eight hours every night. I think that’s incredibly important. I’ve encountered way more bad corporate managers than bad entrepreneur managers in my life. I could go on and on here. If you want to be an entrepreneur don’t think that means that you’ll never sleep or you’ll instantly become a bad manager or you won’t “get” finance. Don’t fall for these dumb misconceptions.  Everything varies from person to person.   

Comments? Questions? Concerns? If you think I’m wrong or have an important myth you think I missed then sound off in the comments.

I want to touch briefly on a curious character walking the American business landscape - the Idea Guy.  You may know an Idea Guy. Always dreaming and never executing. They dream because they are too afraid to act or they simply do not know how to act.

People often confuse real entrepreneurs with Idea Guys. It’s similar to the coral snake and the king snake. Both share similar traits but one – the coral snake – is extremely dangerous. The king snake isn’t.

Here are some of the traits of the Idea Guy that are often confused with Real Entrepreneurship:

• They can’t focus on one idea. Real entrepreneurs generate idea after idea for the company they are currently working on. Although they may think about other opportunities the majority of their time is spend focusing on and building on ideas for their current business.
• They are not good with details. This is not a specific problem with all entrepreneurs but is almost always a problem with idea guys. Stating that all entrepreneurs are not good with details is as ignorant as saying that all entrepreneurs don’t sleep.
• Good at starting businesses but bad at running them. This is the classic Idea Guy trait. Real entrepreneurs start, build and sell businesses over and over again.
• They thieve off organizational chaos.  Real entrepreneurs understand the value of organization and although most start ups are not the most organized companies in the world; operational control is eventually reined in and systems are put in place as the business grows.  Idea guys live in a world of chaos because they can’t figure out how to create order and build an organization. Real entrepreneurs thieve on the idea of introducing a product into their industry that creates so much market chaos that their competitors quickly reside to defeat.
• They’re not sales oriented. Real entrepreneurs are almost always good natural salespeople.  The idea guy almost always struggles to sell.

When Idea Guys finally do act they are often dangerous. In most cases they have no idea how to execute a strategy.  Incredibly, they are often distracted by other ideas, leaving their current “project’ floundering.  Idea guys often create confusion in their own life and the life of others because they are not dedicated to seeing an idea through and they are to distracted by their own minds desire to create many things instead of focusing on one thing. 

There exists a fine line between real entrepreneurs and idea guys. The uneducated public thinks of entrepreneurs jumping head first into ideas with no time to write a business plan or strategize. In fact, the opposite is true. Real entrepreneurs plan and execute on that plan.

Remember what Nolan Bushnell said:  “The true entrepreneur is a doer, not a dreamer.” Don’t be fooled by the idea guy masquerading as a real entrepreneur.

The word “entrepreneur” is the most overused and abused word in the world of business. Entrepreneurship is special.  Real entrepreneurs are unique and rare.  We need to give the word “entrepreneur” and the real entrepreneurs themselves more respect. They deserve it.

How many times have you heard random people proclaim “I’m an entrepreneur”?  In “the business world” the word “entrepreneur” is used to describe things that aren’t entrepreneurial like cutting costs, coming up with new ideas, being strategically minded, etc…When most people utter the word “entrepreneur” it’s usually a compete violation of the true meaning of the word.

I cannot give you a real definition of entrepreneurship in one simple perfect sentence. There are too many considerations and factors to give the word a respectable one sentence definition.  Go to Google and type in “define:entrepreneurship” in the search box. There are 40 or so definitions and most of them give no justice to what real entrepreneurship truly is.  Entrepreneurship, like so many other things in life, is best described by discernable actions or traits. Some call it a specific point in time. Others describe entrepreneurship as a state of mind or an inherited trait you are born with.

Are entrepreneurs born or are they made? Well actually they are both. However, that question is almost irrelevant. The real question is do you have desire? The real question is do you truly believe – religiously – in your product or service.  The real question is do you already possess or can you humbly acquire the traits necessary to be a real entrepreneur? They are acquirable – you don’t need to be born with most of these traits.

If we can’t define entrepreneurship in one sentence then what are some of the traits that define real entrepreneurs? Over the next couple of weeks I will be publishing my thoughts on “real” entreprenuership. Please feel free to tell me your thoughts.