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Start-Up Company Myths That Can Derail A Business

To aspiring entrepreneurs and new business owners, it may appear that a successful startup company has to have innovative products and a unique business culture, complete with state-of-the-art software and stylish furniture. Indeed, innovative products (and efficient processes) can help, but some startups get seduced into believing some of the myths about successful companies. And when things don't go as imagined, disputes arise that can lead to litigation.

This post will identify some of those myths.

The “cool” factor – Of course, part of the allure of creating a startup is tossing the corporate culture aside and staying true to a unique and provocative culture. But the myth about “cool” cultures is that they are fun and unique places to work. Instead, a successful startup is supported by solid products and value systems. So while it is nice to be unique, it does not mean much without reliable business practices.

A “superstar” CEO in the making – Another small business myth is that up-and-coming companies need a charismatic and dynamic CEO to take the company to the next level. While a CEO can be effective with these characteristics, a person who is not committed to the success of the business may not be the right fit for a burgeoning startup.

Thinking like a startup – It is okay for small businesses to be nimble and adapt quickly to changing business needs, but oftentimes this can doom a company that is trying to be too many things at the same time without any success. As we said before, innovative thinking is a key element in business success, but a company that knows its objectives and is willing to stick to its plan can be very successful.

Source: BlackEnterprise.com, “3 commonly believed myths about startup company culture,” C. Daniel Baker, January 13, 2014

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