Tall Tales

Folklore can be a fun diversion. but there is nothing fun about basing your business on commonly held--yet incorrect--beliefs. Kevin Schehrer, author of Startup! Beyond the Myths to the Reality of Starting a Company debunks start-up myths.

Myth 1: People who survive the brink of business disaster are guides on how to run a business. "Most successful entrepreneurs don't go to that extent," says Schehrer. "And unfortunately, a lot of people end up in serious financial trouble [after] being goaded on [by these stories]." Plan in advance--don't aim for the thrilling story; aim for a steady rise to success.

Myth 2: Start-up success happens quickly. "There's a tendency to underestimate the time and money it's going to take to get something rolling," says Schehrer. "It [can] take years."

Myth 3: If you have a good product or service, customers will automatically come running. "It doesn't matter how great your product or service is," Schehrer says. "It takes marketing to get people to realize your [company] even exists."

Myth 4: Anybody with a good idea can get money. "[Some people] suggest it's easy to get money if you follow [a certain] formula," Schehrer notes. "Even if you have a fantastic business model, that doesn't mean you're going to get funded." If you go searching for funds, be prepared for lots of work, time and research.

This article was originally published in the February 2003 print edition of Entrepreneur with the headline: Tall Tales.