The small business landscape is riddled with myths, and there’s no better time than the new year to clean house of these misleading ideas.
Some of these myths will be obvious to anyone with some small business acumen, while others are so deeply ingrained in our mindset that they can be hard to debunk.
But whether you’re dropshipping from a laptop in Thailand or running a midsize production plant in the Midwest US, these myths are ever-present and need to be dismantled before 2022 arrives!
Let’s run through our list of 12 small business myths to leave behind in the new year, with some help from entrepreneurs who know the truth behind all the misconceptions.
Myth #1. Growth is the Only Important Metric
Right out of the gate, we need to dispel the myth that growth is the only thing that matters for a small business. Aspire to grow, but recognize that it doesn’t need to be the main goal.
“We’re in a bit of a growth-obsessed culture as we watch certain small businesses expand rapidly and skyrocket to success in short timeframes,” said Michel Mosse, Co-Founder and Head of Revenue at . “This isn’t inherently bad, but realistically, business owners need to prioritize things like customer retention, support, and delivering on the promises they make. With these fundamentals achieved consistently, growth will happen, even if it takes longer than expected.”
Myth #2. You Need ALL the Latest Tech
The “shiny object syndrome” is very real for small businesses, but should be avoided, especially in the early days. Use tech to your advantage, but don’t let it destroy your budgets.
“It’s human nature to want to chase the latest piece of technology and convince ourselves that the newest stuff is always the answer to our problems,” said Adelle Archer, CEO and Founder of . “This can be a devastating trap, however, because very few technologies actually make a difference in our daily experience and the bottom line. Be more deliberate about the technology you purchase, how you use it, and don’t hesitate to get rid of things that aren’t working.”
Myth #3. Great Products Will Sell Themselves
At the core of every business is a winning product, but founders must recognize that even the best products need a strong company built around them to succeed.
“Products don’t sell themselves; they can be inviting, they can help start the conversation, but most companies still need sales teams to turn free users into paying customers,” said Matt Darrow, CEO at . “Even famous companies like Zoom, Slack, and Asana have robust sales teams when looking at company data from LinkedIn. Ultimately, even when you have a game-changing product, buyers need help aligning their needs with solutions and activating new users, and they demand access to expert support and guidance every step of the way.”
Myth #4. Bookkeeping and Payroll Are a Breeze
It’s just simple addition and subtraction, right? Not so fast, business owners! Accounting is not so easy as it might appear, and gets more difficult as your company grows.
“We can all relate to the idea of wanting to be self-sufficient in something like bookkeeping, payroll, or the other aspects of small business finances,” said Dylan Arthur Garber, Co-Founder of . “That may make sense at first, but before you know it, you’re going to be overwhelmed by the number of moving parts and start making costly mistakes. It’s better to have a professional handle the books from the beginning and focus on things that make a difference for your business.”
Myth #5. Bootstrapping is No Problem, Forget Loans
There are a lot of myths around how small businesses are funded, and bootstrapping is certainly the most glorified method. Just don’t forget there are tons of other ways to get funding.
“I understand the appeal of bootstrapping and doing things the old-fashioned way, but savvy business owners realize that loans and credit are also legitimate ways of funding,” said James Shalhoub, Co-Founder of . “Avoid being stubborn and explore the various types of business loans you can get from banks and different organizations. When you’re aware of all options, you can get some breathing room and not stress about cash so much at the start.”
Myth #6. Small Businesses Don’t Need an Online Presence
The year is 2022, and there are still small business owners who don’t think they need to make themselves known online. Hard to believe, but true!
“With advances in easy-to-use technology, these claims could now be considered myths or misconceptions that have endured over the years,” said Arturo Lee, VP Latin America at . “A while ago, you might need strong technical knowledge. However, with the right tools it can be simple, fast, and intuitive to create a website, social media presence, and online store, including options designed for every need and budget. The online presence helps to break down physical and time barriers, and has become a key aspect that facilitates the establishment and growth of a business.”
Myth #7. Small Business Owners Need to Quit Their Day Job
With all due respect to business owners who quit their jobs and go all in, this isn’t the best course of action for everyone. Sometimes, it’s smarter to wait and resign later when things develop.
“Some of the best small businesses of the modern era started as side hustles or passion projects,” said Philip Akhzar, CEO of . “Don’t get tricked into thinking that a small business requires 90-hour workweeks from the get-go. You can create something profitable with less time and effort, then make a shift to full-time down the road when you have that reliable source of income.”
Myth #8. Customers Aren’t Interested in Your Emails
Email is still the dominant form of communication for businesses large and small, and there are few assets more valuable than an email list filled with legitimate names.
“If someone signs up for your email list, they want to hear from your business, so don’t deprive them of what they want,” said Gabrielle Mustapich, Co-CEO at . “Update them on new developments in your business, share insights, offer deals. This is how you keep customers in the loop and maintain brand relevance. Many businesses miss out on a lot of sales because they neglect their email newsletters.”
Myth #9. Employees Are Always Trustworthy and Reliable
This one’s a tough pill to swallow, but important nonetheless. Not all employees have your best interests at heart, and as a business owner, you’ll have to make some hard decisions regarding hiring and firing.
“The people you surround yourself with are so crucial to your experience running a business and your potential for future success,” said Remon Aziz, Chief Operating Officer at . “If you aren’t getting the level of effort or performance you need from your employees, it’s your right – and your responsibility – to make changes as necessary to improve the staff. This is one of the hardest parts of running a company, but you need to handle problems early and often to avoid bigger ones boiling over later.”
Myth #10. Partnerships Are Based On Feelings, Not Performance
When you first start a business, partnerships will be key to get your ideas up and running. But eventually, you will need to focus on the bottom line and end partnerships that are no longer beneficial.
“There is this myth that you need to stick with the same business structure, or use the same suppliers, contractors, and partners for years on end,” said Alex Czarnecki, Founder and CEO of . “I can understand that desire to keep things predictable and build trust. However, this leads many businesses to struggle unnecessarily because they are stuck in the same old way of doing things. Don’t wait until it’s too late to make changes and level up.”
Myth #11. You Need a Big, Expensive Office to Be Successful
Who doesn’t want a nice, luxurious office to conduct business? This was the dream back in the day, but the modern small business owner doesn’t need the extra overhead.
“The power of cloud-based and remote business software is incredible, and there isn’t really a point in spending thousands on an office that isn’t necessary,” said Tyler Read, Founder and Senior Editor at . “Some of the strongest ecommerce brands right now are just run from a laptop and a smartphone. Keep spending to a minimum and keep a low profile, because that’s how you achieve impressive margins.”
Myth #12. Small Businesses Don’t Need to Pivot or Evolve
There are plenty of small businesses that never change, and they have their charms. But if you’re serious about business, you’ll need to embrace evolution at some point.
“Stay true to your roots, but don’t be against changing lanes or exploring new ways to elevate your business,” said Daniel Sathyanesan, CEO and Founder of . “This is how great, lasting companies stand the test of time.”
Mission accomplished – 12 small business myths debunked! Remember these points throughout 2022 and beyond so you stay on top of your game.