The small business world is fraught with uncertainty and rumors. Two of the biggest misconceptions are that the federal government provides grants to new entrepreneurs, and that you can work whenever you want when you have your own business (we’ll debunk these later). If you think you’re ready to start your own small business and keep it afloat you need to separate fact from fiction. Here are five more small business myths that have been debunked by AOL.com’s business writer Patricia Simone.
Myth No.1: The government provides grants for startups.
The federal government does not have a grant that gives money directly to small businesses. However, there are several low-interest loans and venture capital financing programs available to help veterans start a business.
The Small Business Administration (SBA) offers two loan programs to veterans – the Patriot Express Loan Initiative and the Military Reservist Economic Injury Disaster Loan program.
The Patriot Express loan provides loans to veterans who want to establish or expand their businesses. The Military Reservist Economic Injury Disaster Loan Program helps small businesses meet operating expenses because of the deployment of an employee.
Myth No. 2: You’ll have more time to spend with friends and family.
Starting your own business is a major time commitment. Being your own boss doesn’t always mean that you can make your own hours. Many entrepreneurs eat, sleep and ultimately live for their business. Running your own business is a lifestyle and you must prepare for the demise of your time.
Myth No.3: You can write all of your expenses off.
Don’t try to write off personal purchases as business expenses. This will get you audited by Uncle Sam. All of your business expenses should be directly related your business.
Myth No. 4: You can pay yourself whenever you want.
By taking the majority of the money that you make from your business, you will have nothing to left pay expenses. Make an effort to pay for marketing, operational expenses and overhead first. What’s more, you should expect to not take any money from your business for at least two years.
Myth No.5: You’re business should be profitable in six months.
Even if you’re the best in the business, you shouldn’t expect your business to be profitable right away. Most new businesses don’t see a profit for two years. It takes time and a lot of reinvestment into your company before the start-up is successful, reports AOL.com. For more information about financing your new business visit Military.com’s Finance Center.