5 Common Myths and Mistakes of First-time Business Owners

You know, it’s funny. Everyone from your next-door neighbor to social media influencers seems to have “expert” advice on starting a business. While it might sound good on the surface, it may actually hinder your success. And over the years, I’ve heard many misconceptions from first-time business owners. So whether you’re still daydreaming about quitting your day job or you’re already knee-deep in startup mode, this article is for you.

Myth 1: If you build it, they will come

This might work in Kevin Costner movies but in business? Dream on. Many first-time entrepreneurs, especially tech-savvy folks, fall into this trap. They pour their heart and soul into building the perfect app or SaaS (Software as a Service), believing customers will magically appear once it’s launched.

Another example is that even if you’ve got an amazing product, there is no guarantee of success. Think about your local restaurants. How many times have you dined at a small, family-owned place with great food only to see them have to close? Meanwhile, McDonald’s keeps serving up mediocre burgers and fries to billions worldwide. Why? Because McDonald’s isn’t just selling food – they’re masters at running a business, from marketing to operations to scale.

The lesson? You need to market and sell relentlessly, preferably before writing a single line of code or firing up the grill. Your brilliant idea or mouthwatering recipe won’t make you successful on its own – execution will. Prioritize customer acquisition from day one. Get out there, talk to potential customers, and validate your idea before you invest time and money into building it.

Related: Why Passion is Overrated When Starting a Business

Myth 2: I need to do everything myself

Enter the entrepreneur’s “I can do it better” syndrome. Yes, in the beginning, you’ll wear many hats. But thinking you can (or should) do everything yourself is a fast track to burnout and inefficiency.

One example of this is that knowing your numbers is important, and I’ve seen too many entrepreneurs who can’t tell the difference between sales and profit, or who neglect to track metrics like Cost of Goods Sold (COGS). They let their financials run wild and forget to set aside money for taxes. Despite this, many new business owners do their own bookkeeping. Remember, you’re trying to sell a product or service, not become an accountant. Don’t fool yourself into thinking you’ll “get to it on the weekend” or “next month.” Trust me, you probably won’t and before you know it, you’ll be staring at a pile of 12-month-old receipts as the tax time looms.

My advice for all business tasks is to learn them, do them, and then hand them off unless they happen to be something you enjoy or are the best at. As a business owner, you only have so many productive hours and your focus should be on setting up systems to deliver value to your customers, not getting bogged down in every little task.

Myth 3: I’ll be my own boss and have more free time

If I had a dollar for every time I heard someone say, “I’m sick of the 9-5 life. I’m going to start a business and be my own boss, I’ll choose my own hours and take lots of vacations.” Fast forward a few months, and they’re working 10+ hours a day, 6 days a week.

The hard truth? Every client (and multiple layers of government) is your boss now. You’re always on the clock, especially in the early years. And unlike a regular job, where one boss can fire you, now each client can “fire” you by simply not coming back. Even worse, if you took out a loan for your business, it’s much harder to quit your business.

Forget about taking tons of vacations or getting rich quickly. There will be times when you’re barely able to make payroll, let alone take a paycheck yourself. It’s a hard road, and it’s not for everyone.

Related: Why Starting a Business May Not Solve Your Financial Problems

Myth 4: I’ll be successful in no time

You will see enticing info from gurus selling you a course or playbook telling you about how to be successful. While there are going to be some nuggets, something many of the “influencers” won’t tell you is that success in entrepreneurship is a long game, and the money doesn’t come fast. Many people start businesses to get rich, but that shouldn’t be your primary motivation. Focus on delivering value first.

There’s no magic formula or secret shortcut. Success rarely happens overnight. Success comes from consistent effort and learning from failures, not just a lucky break. It’s about showing up every day, putting in the work, and continuously improving. You’ll face setbacks, failures, and moments where you’ll want to throw in the towel. Every successful entrepreneur has been through this valley and it will be tempting to go back to a safe job. Keep pushing and keep learning, but don’t give up too soon.

Myth 5: I don’t need a business plan

Some entrepreneurs skip this step, thinking it’s just unnecessary paperwork. Big mistake.

Your brilliant idea means nothing if there’s no market for it. Don’t make assumptions about what customers want or need. Your business plan helps you clarify your mission, vision, and goals. It forces you to think through your market analysis, financial projections, and operational plans.

A solid business plan isn’t just for attracting investors or getting a loan; it’s your roadmap to success.

Related: How to write a business plan

Wrapping Up

Starting a business is complex and challenging, but it can also be incredibly rewarding. By avoiding these common myths, misconceptions, and mistakes, you’ll be better prepared for the entrepreneurial journey ahead. Remember, it’s not about getting rich quickly or having more free time – it’s about creating value, solving problems, and building something meaningful. So, are you ready to take the plunge? Pack your patience, resilience, and a healthy dose of realism along with your dreams.