10 Myths About Starting a Business That You Probably Believe

 

If you're thinking of starting a business, you're not alone. An estimated 42 million small businesses will be running in the U.S. by 2026.[1]

Over the years, you've probably heard business facts tossed around in casual conversations and board meetings. But a lot of what you think you know about starting a business might be untrue — especially pertaining to your finances.

To start your endeavor out on the right track, it's time to dispel 10 myths about starting a business that you probably believe. 1 MYTH MOST NEW BUSINESS OWNERS DON'T EARN ENOUGH TO TAKE REGULAR SALARIES. 2 MYTH FACT $50,000 IS THE AVERAGE STARTUP SALARY FOR OWNERS.³ FACT YOU DON'T NEED A BUSINESS PLAN TO GET STARTED. 3 MYTH FACT YOU NEED A LOT OF CASH TO GET STARTED 4 MYTH 64% OF BUSINESSES ARE STARTED WITH $10,000 OR LESS. 5 FACT YOU CAN FIGURE OUT A FINANCIAL STRATEGY AS YOU GO. 6 MYTH 68% OF BUSINESS OWNERS REGRET NOT LEARNING ABOUT FINANCIAL MANAGEMENT EARLY ON. 7 FACT MOST STARTUPS ARE FUNDED BY VENTURE CAPITALISTS. 5 MYTH LESS THAN 1% OF STARTUPS ARE FUNDED BY VENTURE CAPITALISTS; MOST ARE FUNDED BY PERSONAL SAVINGS AND BANK LOANS. 6 FACT USING A PERSONAL BANK ACCOUNT FOR A BUSINESS IS A SOLID FINANCIAL DECISION. 7 MYTH 71% OF NEW BUSINESS OWNERS USE THEIR PERSONAL ACCOUNTS FOR BUSINESS, LEADING TO POOR RECORDKEEPING AND TAX HEADACHES . A SEPARATE ACCOUNT IS BEST. 8 FACT Fact YOU'RE TOO OLD TO START A BUSINESS. 8 MYTH 51% OF SMALL BUSINESS OWNERS ARE AGE 50–88. 9 FACT YOU NEED TO BUY OR LEASE OFFICE SPACE. 10 MYTH 50% OF BUSINESSES HAVE VIRTUAL OFFICES WITH EMPLOYEES WORKING REMOTELY. 11 FACT YOU NEED A TEAM OF EMPLOYEES TO LAUNCH A BUSINESS. 9 MYTH 62% OF BUSINESSES HAVE FIVE OR FEWER EMPLOYEES. THERE ARE 23 MILLION SOLE PROPRIETORS IN THE U.S. 10 FACT IT’S THE WRONG TIME TO START A NEW BUSINESS. 550,000 BUSINESSES OPEN EACH MONTH.² 34% OF STARTUPS CREATE BUSINESS PLANS AND HAVE BETTER CHANCES OF SECURING FUNDING BECAUSE OF IT. 4

For more information on managing your business finances and what banking solutions are available to help, stop in your nearest PNC branch, or call PNC 1-877-287-2654 to schedule time with a Business Banker.

 

Important Legal Disclosures & Information

  1. https://www.inc.com/alex-chriss/starting-a-business-in-new-year-keep-an-eye-on-these-5-trends.html

  2. https://www.kauffman.org/kauffman-index/reporting/startup-activity

  3. https://www.inc.com/alyson-shontell/how-much-do-startup-founders-pay-themselves.html

  4. https://smallbiztrends.com/2010/06/business-plan-success-twice-as-likely.htm

  5. https://www.census.gov/ces/dataproducts/bds/

  6. https://www.entrepreneur.com/article/230011

  7. https://quickbooks.intuit.com/r/trends-stats/know-small-businesses-start-10000-less/

  8. https://quickbooks.intuit.com/r/trends-stats/know-small-businesses-start-10000-less/
  9. https://smallbiztrends.com/2016/11/startup-statistics-small-business.html

  10. https://www.crowdspring.com/blog/surprising-small-business-statistics/, https://taxfoundation.org/us-has-more-individually-owned-businesses-corporations/

  11. https://www.crowdspring.com/blog/surprising-small-business-statistics/

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