With all the fancy hoo-hoo about mission statements, business plans and the like for start-ups, I'd like to list my top start-up myths. Way too much emphasis is put on these corporate buzzword concepts that can easily take away from what you really need to be doing: run your business. So here are my top 6 start-up myths:

You need a business plan to be successful. – This couldn’t be further from the truth. When I started my first business, one of the most asked questions was, “Do you have a business plan?” My answer was, “No.” I think business plans are the most over-rated thing in the start-up world. When you start out, you are small, and everyone in your start up should be on the same page. A business plan doesn’t necessarily put everyone on the same page, i.e. it isn’t the first place everyone goes to when something is in question. Good communication is a better plan to have.

What is important to have is access and participation in some type of mentorship program. Oklahoma City (where I am located) has several very good start-up programs in which you can have access to some very talented and experienced individuals who can help with questions and provide guidance on the “dos and don’ts” in the start-up world.

You need a mission statement. – Very similar to Myth #1, a Mission Statement can never replace good communication and great management. It is up to you, as the business owner, to make sure that everyone understands there mission. After all, the mission is to “stay afloat and make money” (which was my first mission statement, BTW). And don't be hoodwinked into thinking that your customers care about whether or not you have a mission statement, because they really don't care. They just want a good product and/or service at a great price.

You need money to begin a business. – I made this mistake in my first business. I listened to all those people who said I needed seed capital to get going. While seed capital from Angel Investors can be very helpful (depending on the type of business you are starting), not all start-ups need money to get started. The problem with investment from outside sources is now you have to answer to other people, who often have differing opinions than yours or even from different Angels who have invested in your company. This is a HUGE headache. While there are other benefits Angels can provide (such as experience and advice), I would rather grow a business organically, which gives me more autonomy, allows me to keep more of the money I own and I don’t have to answer to anyone.
If you have a limited budget, you will be forced to be creative. And the lessons you will learn from this creativity will be with you for the remainder of your time as an entrepreneur and are valuable in avoiding the same pitfalls in the future. Just keep costs low where possible, use low-cost marketing strategies, and be pro-active and agile to the changing needs of the business. That way if things don’t work you, you’ll be happy you didn’t sink a bunch of your own (or others!) money into it.

Being my own boss means life will be so great! – Being an entrepreneur of a start-up is more of a way of life than it is a job. I am here to tell you, your life will revolve around your business, not the other way around. And it will be that way for most entrepreneurs no matter how successful your business is. This is a most important consideration if you have a family as you don’t want to sacrifice your children or your relationship with your spouse as this is sure to have dire consequences. God/Life/Work balance is essential for your happiness. Keep your priorities in order, always, and you will have a better chance of success.

Hiring people with a degree will increase my chance of success. – This couldn’t be further from the truth, especially for start-ups. I would rather hire somebody with initiative and experience. Why? Firstly, people without a degree are usually cheaper to hire than those with a degree. And secondly, people with experience have shown they can do the job. In my experience in hiring software developers has been that those without a degree (for the most part) actually like what they do, and happy people means a better work environment and better products.

I am the determiner of my own success. – When I went to the Inc. 500 conference in March of 2006, one of the speakers was Bo Peabody. Mr. Peabody founded Tripod.com, which later sold to Lycos for $58 million. He had just released his new book, “Lucky or Smart?: Secrets to an Entrepreneurial Life” which intends on determining whether success as an entrepreneur is based on one’s intelligence or is it just pure, dumb luck. Bo gave several examples in his speech as to various successes and failures, including his own successes, and had determined that pure, dumb luck had prevailed. He had determined that there were very smart people who had just as many successes and failures, and there were some relatively *stupid* “not-so-smart” people that were successful (and failed) as well. There was no method to the madness, so he sided with luck.

When I got home, I read his book, and a Bible verse came to mind:

It was an epiphany to me that it wasn’t smarts or luck, and therefore it wasn’t up to me. It was really up to God, and His sovereignty. That's not to say that we shouldn't be wise and use the mind God gave us, but our success is and always has been up to Him. He gives us whatever skills we have. And God will give wisdom when you ask Him (James 1:5). So I strongly encourage you to take Proverbs 22:2 into consideration when starting any new business.