Business Urban Legends - Part 1 - Intro
Reading is one of the things that I will never stop doing. No matter how busy I am, I take time out each day to read and learn. It is the ultimate investment in yourself. One of the most helpful things to me as a "rookie" internet entrepreneur has been to subscribe to 15-20 great email newsletters that keep me informed about what's going on in the industry. I recently came across a GREAT article in the Entrepreneur.com newsletter that I think warrants quite a bit of attention. In fact, the next several blog posts will be about this article.
The article is about the "Urban Legends" of business - the myths about business that tend to scare people off. We've all heard that "90% of all small businesses fail within the first five years." As an optimistic entrepreneur, it can be devastating to hear things like this, especially when many stats like that aren't true. The article hits the nail on the head when it comes to myths like that:
More startup entrepreneurs should resolve to ignore those stats because there is no truth to the widely cited figures indicating such high failure rates. In effect, they and some other widely held ideas about entrepreneurship are urban legends--misconceptions that discourage or mislead people who are starting or trying to grow businesses.
The article says that the SBA reports that almost half of new firms with at least one employee survive beyond four years. A far cry from 90% failing!
Another great point that the article makes is that many of those that do close (perhaps as high as 75%) DON'T close for financial reasons.
Starting a business is tough enough as it is. Unfortunately, one of the largest obstacles that people tend to face is all of the naysayers. I've commented about my frustrating experiences numerous times on this blog. No matter how focused you are, it is tough to have something that you pour your heart and soul into trashed. The result of all of the negativity is a skepticism that entrepreneur Wendy Kauffman expressed perfectly in the article:
"You end up being very careful about whom you talk to, because if all that negativity hits you on the wrong day, it can be very potent," she says. "You have to be the kind of person who says, 'I'm not going to listen to it.'"
I've noticed that I have developed a thicker and thicker skin as time has passed. It's not that I don't care what people think. I do care, and I will listen to any logical point that anyone wants to make. What I won't tolerate is negative comments attempting to put me down that stem from some deep hidden desire to feel gratification in seeing me fail.
Anyway, take the time to read the article. No matter what stage you are at in your entrepreneurial life you will get something out of it. In the next five posts, I'll break down each of the five myths and how they relate to my experiences.
The article is about the "Urban Legends" of business - the myths about business that tend to scare people off. We've all heard that "90% of all small businesses fail within the first five years." As an optimistic entrepreneur, it can be devastating to hear things like this, especially when many stats like that aren't true. The article hits the nail on the head when it comes to myths like that:
More startup entrepreneurs should resolve to ignore those stats because there is no truth to the widely cited figures indicating such high failure rates. In effect, they and some other widely held ideas about entrepreneurship are urban legends--misconceptions that discourage or mislead people who are starting or trying to grow businesses.
The article says that the SBA reports that almost half of new firms with at least one employee survive beyond four years. A far cry from 90% failing!
Another great point that the article makes is that many of those that do close (perhaps as high as 75%) DON'T close for financial reasons.
Starting a business is tough enough as it is. Unfortunately, one of the largest obstacles that people tend to face is all of the naysayers. I've commented about my frustrating experiences numerous times on this blog. No matter how focused you are, it is tough to have something that you pour your heart and soul into trashed. The result of all of the negativity is a skepticism that entrepreneur Wendy Kauffman expressed perfectly in the article:
"You end up being very careful about whom you talk to, because if all that negativity hits you on the wrong day, it can be very potent," she says. "You have to be the kind of person who says, 'I'm not going to listen to it.'"
I've noticed that I have developed a thicker and thicker skin as time has passed. It's not that I don't care what people think. I do care, and I will listen to any logical point that anyone wants to make. What I won't tolerate is negative comments attempting to put me down that stem from some deep hidden desire to feel gratification in seeing me fail.
Anyway, take the time to read the article. No matter what stage you are at in your entrepreneurial life you will get something out of it. In the next five posts, I'll break down each of the five myths and how they relate to my experiences.
posted by Adam McFarland at
3/22/2006 12:58:00 PM
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