MYTH #1: I don’t have to register my business since it is small.

TRUTH: You do!

Registering a new business is a statutory requirement; it has nothing to do with the size or age of your business.

MYTH #2: There are all kinds of government grants and loan subsidies for people who want to start small businesses.

TRUTH: Not really.

Government grants for starting small businesses are usually earmarked for special groups of people or business ideas or particular regions/economic areas of the country. (To get more of an idea about the kinds of grants that are available, read

MYTH #3: Since I am not planning to raise any funding, I don’t need a business plan.

TRUTH: You do!

You need a business plan. It serves as a roadmap and will give you a clear picture about your mission, your budget and strategy for your business.

MYTH #4: My business idea is great and unique. I should get funding right away.

TRUTH: It is not so easy!

A product/ service idea is considered “fundable” only when a test model can prove that consumers will be willing to pay for it. Also, unless your business has a rock solid business plan and expected robust growth ahead, sourcing funding can be a challenge.

MYTH #5: I can worry about financial management and tax planning when I start making profits.

TRUTH: No way!

All businesses need to prioritize financial resources well ahead of time. Growth needs cash. You do not want to discover that the business has run out of cash at a critical time or that certain expenses are not tax deductible under the tax laws after you are neck-deep in your business.