photo credit: h.koppdelaney

Here is a list of a few myths all startup founders and entrepreneurs are blinded by (and which certainly aren’t close to being true);

1.You NEED to fail before you succeed

It is true that many startup face failures before they actually taste success but that isn’t the case always. And instead of saying “you need to fail before you succeed”, something like “learn from your mistakes” will fit in better, and there is a huge difference between the two. If you don’t learn from your mistakes, you’re bound to fail and repeat them but every startup doesn’t have to fail before you succeed. If you start believing that you have to fail before you succeed, you will have a very negative mindset which can be dangerous for optimistic and passionate entrepreneurs.

2.You Need Millions in Funding to Startup

You need millions of dollars in funding to scale and grow, not to start a new venture. Kevin Rose (Founder of Digg) spent only $2000 to start Digg. He took is first round of funding almost a year and a half later. The cost of starting/running a small business is lower than it has ever been. Bootstrap for as long as you can, and seek funding when you need it and work hard.

3.Only concentrating on “Profit Margins”

Startups make a huge mistake by concentrating on profit margin and percentages as an indicator of how well they are doing. These aren’t correct barometers to measure the health of a startup at an early age. Indicators such as conversion, retention, referral and Revenue should be used at this stage. Keep your revenue high, costs low and track them separately.

4.Branding isn’t important

“Brand building isn’t important at this stage” – Wrong. Branding is fundamental and many startups take this issue for granted expecting it to develop on its own, but sadly it doesn’t. The market is extremely competitive and it’s these small branding efforts that will make you stand out. Branding isn’t just about your name and logo, it’s about the overall experience, the overall tone of voice by every single user you have. Initiate branding activities when starting up, and watch it grow and develop.

5.Location determines success

No, you don’t need to be in the valley to be successful. It’s true that being in a ‘conducive environment’ might help but location should never handicap you. Many tech companies are now flourishing from EU, UK, India and China etc. and there have been huge successes in the last 2 years or so. If you have the infrastructure, talent, passion and audience – then location shouldn’t hamper you in anyway.

For more insight on the topic, we suggest you read this post at Carsonified

Some of the most successful seed-stage companies like YCombinator put very little money into a business (around $20,000) initially because you don’t NEED any more than that