Business is nothing but rearing and caring of your kid. You actually start off as a novice even though prior experience in the field. However, you grow and mature with time and slowly but steadily make your business a fruitful one. The journey of becoming a successful entrepreneur is not an easy one. You may end up in losing something, but your goal should remain focused. However, often people get diverted from their course and make some mistakes. These mistakes are sometimes unintentional also and mainly fueled by some popular misconceptions. It is better to be clear about the misconceptions and make sure that you do not do such mistakes in life.
Accounting is for Tax Savings
This is the biggest misconception an entrepreneur could ever have. There is no doubt that accounting is important for Tax Deductions, but that does not mean it is all. Accounting is the backbone of any business. Good Book Keeping can make you do wonder in business. The more records and data you keep, the better idea you will have about your business. The market is dynamic and you need to be very spontaneous to understand these. Accounting opens up many doors for business and better ideas as well. So, do not limit to the Tax Deductions.
Business Loss can save Tax
People start a business out of hobby, not passion sometimes. The only thing that hovers around their mind is saving the tax. They do not even bother to generate some profit out of it. In a time of hardship, tax deductions are offered to the entrepreneurs but only when they are working hard and fighting to achieve it. If it is found that you are actually doing nothing, there might be no deductions for you and that could lead to double blow. You would have gone in the loss and you need to pay your full tax. It is better to run the business by heart and stop thinking about saving tax through loss.
No scope of incorporation
The person who does not incorporate with time actually does not stand a chance in the industry. If you are under this impression that you do not earn much money to incorporate then it is better to look back at the ethics of your business ideas. You must change as per the time and incorporate new things. If you stay as it is for long time, then you will only invite rust to your business.
Big Commercial Place
You may think that big commercial places attract customers and clients and take the burden of a lease at the starting of your business. This is one of the biggest and poorest misconceptions one can have. The first thing that you should concentrate is the quality of the job delivered and then anything else. If you are good enough, then the clients will come and if not then nothing will go in your way.
There are such many misconceptions go on in the mind of the entrepreneurs especially the young entrepreneurs. These will take nowhere but to the end of a bright start.