Entrepreneurship fallacies

March 23, 2011
Back to TopCommentsE-mailPrintBookmark and Share

Thinking about starting a business? New York Times blogger Jay Goltz lists his top fallacies of entrepreneurship. In sum:

1. “Any business has a 50-50 shot at succeeding.” Accurate, maybe, but failure rates vary dramatically depending on how the business is executed.

2. “It’s all about finding the new thing.” Most new businesses are not big new ideas.

3. “Starting a business now offers more stability than holding a corporate job.” Hah.

4. “I want control of my own destiny!” The essence of business ownership.

5. “I want to set my own hours.” Possibly the “cruelest” fallacy.

6. “I’m going to start my business as soon as I raise the capital.” Much easier said than done.

7. “Do what you do well and delegate the rest.” Better to delegate and be a jack-of-all-trades.

8. “I’m tired of making money for other people.” You’re self-centered.

Anything he left out?
 

ADVERTISEMENT
  • Fallacies
    He forgot "You can take time off work any time you want" and "I want to be my own boss". In reality it is harder to take time off work because no one fills in while you are gone and your customers are now your bosses. Everyone thinks that because you own the business you are free to do as you please and nothing could be further from the truth.
  • "People Will Flock to My Door"
    So many entrepreneurs I talk to are astounded that passing out a few business cards and putting a sign on a window and maybe their car just isn't bringing in the prospects like they expected. Networking can make a big difference and you should be out meeting as many people as possible, and free (as in no dollar cost) social media is part of most brand building processes. However, every business must have a marketing plan with a budget in dollars, and I see way too many businesses who think a $500 annual marketing budget is going to launch a $500,000 business. Maybe it will but you'd be better off going to the casino because your odds are much better. There is no hard and fast rule for advertising and marketing during start up, but don't be surprised if you are spending 30-50% of your first year revenue in acquiring clients.
  • Watch your money
    "If I have an accountant and a lawyer, I don't need to understand my own books and the tax laws."
  • Retarded
    Clearly, Jay Goltz has never actually started a business himself.

    Starting a business IS more secure and stable than a corporate job because you actually do control your own destiny. It's completely up to you whether your company succeeds or fails. With a corporate job, you're at the whim of the company and have little to no control over your own destiny. Work hard for a company and you might get promoted or a slight raise; work hard for your company, and see the reward of increased profits.

    I've been setting my own hours for a decade, and I love it.

    Being tired of making money for other people isn't self-centered, it's innate to every human being. Why spend all your effort to help executives leverage your work into higher paydays for themselves? When you own your own business, you leverage your work for your own benefit, which is exactly as it should be.

    Have fun in your lifelong rat race Mr. Goltz. Call me when you retire at 80.

  • Reality check
    There are four key ingredients to success in starting your own business:

    1) Energy - plan on many, MANY 14-16-18 hour days;
    2) Capitalization - you need sustainable reserves for a minimu of 6 - 12 months;
    3) Location, location, location - make sure market size / traffic counts / visibility contribute rather than undermine your efforts;
    4) A thorough, multi-outlet, coherent and funded marketing plan - a better mouse trap is worthless if not enough people hear about it.

    Radical innovation is highly-overrated due to the exploratory market development. New things are untested and require a lot of consumer indoctrination. Find success other places, understand why it succeed, then introduce a compelling innovation on it. This saves a lot of time and money in market research.

Post a comment to this story

COMMENTS POLICY
We reserve the right to remove any post that we feel is obscene, profane, vulgar, racist, sexually explicit, abusive, or hateful.
 
You are legally responsible for what you post and your anonymity is not guaranteed.
 
Posts that insult, defame, threaten, harass or abuse other readers or people mentioned in IBJ editorial content are also subject to removal. Please respect the privacy of individuals and refrain from posting personal information.
 
No solicitations, spamming or advertisements are allowed. Readers may post links to other informational websites that are relevant to the topic at hand, but please do not link to objectionable material.
 
We may remove messages that are unrelated to the topic, encourage illegal activity, use all capital letters or are unreadable.
 

Messages that are flagged by readers as objectionable will be reviewed and may or may not be removed. Please do not flag a post simply because you disagree with it.

Sponsored by
ADVERTISEMENT
  1. Good Day I am Mr (Victoria Wright) from United state of America, i stayed in NEW YORK, and i have a broke up business, until i found this company email who help me to gain a loan for business,, and now i want to used this short medium to congratulate the below company for the fast and safe money they loan to me without any form of collateral, i loan 500,000USD from the company to save my business and lots more, i saw their mail on the internet, everyone always give testimony for what they did, so i quickly contacted them and they all did everything for me without stress and my money was sent to my account just 3 days later, i was surprise and i feel so glad, now i have a standard business control agent who help me, now i will advice those who need urgent loan to contact him at the bellow email:zenithfirm12@gmail.com

  2. NOTICE:This is to inform the general public that Vampires are real. My name is James Franklyn.,am an agent of vampire,am here to introduce our new world trend to you,a world of vampire where life get easier,we have made so many persons vampires and have turned them rich,you will be assured long life and prosperity,you shall be made to be very sensitive to mental alertness,stronger and also very fast,you will not be restricted to walking at night only even at the very middle of broad day light you will be made to walk.In case you are wildly oppressed by some unscrupulous persons we can still help you fight them.Your protection is assured immediately you join.Just contact the bellow email if you are interested we are here to attend to you anytime you want us. Contact the bellow email for more details. Email:vampirescreed@hotmail.com Sincerely: James Franklyn.

  3. Bravo! Someone else that is willing to speak the truth! Bravo!_____NBCSN is available in almost 2 MILLION more homes than just a few years ago, but Indycar STILL gets less total viewers than it did just a few years ago when NBC took over Versus. Attendance and ratings cratered with the end of season races (just when the title battle got "interesting" HAH!__________And now...new race in Basilia, where Miles celebrated the "rich history" of Indycar racing there. Rich history? What, 7 events in the 100 years of AOW? Yep, some history. Well, at least its an oval. It's not??? Are you kidding me??? Gosh darn road racin furriners.

  4. PURITY RAY LOAN OFFER........ Have you been denied by your banks,or are you in need of of an urgent loan to pay of your bills we are capable of giving loans @ cheaper rate to interested individuals, student, companies and members of the public in need of finance to settle bills, we do offer considerable loans which you can count on. For more information on our various types of loan,then you will have to contact PURITY RAY LOAN FIRM, to help you achieve your desire LOAN APPLICATION FORM TO BE FILLED BORROWERS INFORMATION * Full name:………………………. * SEX * ……………………………. * Country………………………….. * State:……………………………. * Land:…………………………….. * Occupation:…………………….. * phone number:…………………. * Telephone: ………………………….. * Age:………………………………. * Amount needed as loan:……… * Loan Duration:………………….. * Propose of Loan:……………….. * Annual revenue:………………… * Monthly Income:……………….. * Guarantee:………………………. * Payment: monthly or annually Email.....purityrayloanfirm@gmail.com Thank you and God bless Mr Purity Ray PURITY RAY LOAN FIRM we tend to serve you better

  5. Problem: most of the people responding to this article don't know about this service AT ALL! Why? Lack of awareness. This isn't IndyGo. This is CIRTA: might as well be the mattress company because they are asleep at the wheel - something like 3 directors over the last year? Playing with federal grant money is great! This "region" wants commuter rail service, has spent MILLIONS on Transportation studies yet can't even support a commuter bus line? This is largely for suburban riders to get to downtown - not for "service people to work in our hotels and restaurants" ! Get your head out of your backside!! These are professionals, students etc. that don't want to fight traffic, save some money on parking, gas, stress.... if CIRTA would put their federal money into widely promoting the sevive to Greenwood, Fishers & Carmel instead of finding directors and studies - this would be a successful service. Our family uses(d) it daily for the last several years - but the recent uncertainty & now unreliability due to cuts from Carmel has been a problem. Now, costs us an additional $350/month for gas & parking ( $4200/year) plus vehicle wear, service, environmental impact ... YES - this REGION needs this this type of service in order to keep growing and getting the people it needs to fill skilled positions in downtown Indianapolis. Think outside of your own car !!!

ADVERTISEMENT