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What You DON'T Need to Start a Business

Taking the plunge and starting your own business can be scary. Really scary. And, the world of entrepreneurship can be incredibly overwhelming. In our last post we discussed the 7 things that you need in order to start a business. These are: an idea, a willingness to put yourself out there, rational and reasonable thinking skills, time, and a support network.

But there are plenty of other things out there that many people think are requirements for starting a business. Most likely they aren’t. It’s not that we are saying these things aren’t good, it’s just that you really don’t need them to start a business.

So, if you are using your lack of the following items as an excuse for not taking action on your business, the time has come to put that excuse aside. We are myth busting away today.

What You DON’T Need to Start a Business

An office

You don't need an office to start a business

When you’ve watched all seven seasons of Mad Men the office seems to be an integral part of the business. How could you have a successful business without an office building, a corner office, and (if this were 60 years ago–a fully stocked bar cart)?

We have come a long way from those days and thanks to the massive amounts of technology now available at our finger tips, you don’t need a physical office space in order to start your own business. You can work from home, from a coffee shop, or even from a beach. If working from home we recommend setting aside a particular area for work purposes, but it doesn’t need to be elaborate.

Make sure to keep track all of your work expenses with a home office, because they may be able to be deducted on your tax return.

A college degree

You don't need a college degree to start a business

It is really easy to believe the myth that in order to start your own business you need a college degree. However, a myth is all it is. As of 2017, A CNBC SurveyMonkey Small Business survey found, “Independent business owners without a four-year degree now outnumber those with a bachelor’s degree or higher….”

Probably one of the most famous recent entrepreneur without a degree is Mark Zuckerberg, founder and CEO of Facebook. He joins the ranks of other successful college dropouts: Steve Jobs and Bill Gates.

This of course doesn’t mean that if you do have a college degree you should throw your business dreams away. It simply means that one shouldn’t use a lack of a degree as an excuse for not starting a business if it something they want to do.

Lots of money

You don’t need lots of money. You don’t need tens of thousands dollars in funding from investors. You don’t need to have a trust fund in order to start your business. Keep expenses as low as possible, use strategies such as affiliate marketing, or sell a service instead of a product. The fact is you will need some money, but it’s a myth that you need a whole lot.

An amazing new invention

You don't need to re-invent the wheel to start a business

You may think in order to have a successful business you need to invent a product that is the greatest thing since sliced bread. If you have invented a completely innovative product–that’s great–but the point is that you don’t need to. Entrepreneur lists 8 ways to come up with a business idea including, making a cheaper version of a product and applying your skills to a totally different field.

Accounting know how

Just to be clear, accounting is a part of business. Bookkeeping, budgeting, taxes, and financial forecasting are all part of business. I’m sorry to say it, but you don’t get a total get out of jail free card on accounting matters.

However, that doesn’t mean you need to be an expert in these matters before you take the plunge. In fact, it’s a good idea to hire accounting help–especially in the beginning stages. As time goes on, learning some of the accounting basics can help you to have more productive discussions with your accountant, but there is no shame in letting an expert take care of these things.

Looking for more advice for on starting your business? Contact us at Lumen Advisory and Finance!