Business formation myths debunked

According to the Conference Board’s Consumer Confidence Index, American consumers’ expectations about the markets improved dramatically last month. This might mean the time is right to start a business. The San Francisco Chronicle’s insight on startup myths might make a new business ventures seem more manageable.

Many new business owners think they need a detailed business plan before undergoing business incorporation. The truth is, the plan often evolves during this process. The source points out that spending time creating the perfect plan might mean an entrepreneur misses the prime market moment for products and services. A plan is needed to gain investors, but it can develop with a company.

Another common myth about starting a business is that startups won’t make a profit for three to five years. The San Francisco Chronicle claims many organizations turn a profit much sooner. Companies in service industries, in particular, sometimes see profits in just a few months.

The source also debunks the common misconception that a business requires a catchy name to catch consumer dollars. Quality products and services will win and maintain business. It is essential, however, to choose a name that is not already taken by a competitor. Online incorporation services offer a free name check that can safeguard entrepreneurs against this liability.

With these myths put to rest, entrepreneurs will hopefully be more bold in starting business ventures – the Kauffman Foundation reports that fear of taking risks is one of the leading barriers to entrepreneurial success.