Many people have a lot of myths about what being an entrepreneur is and how it will shape/affect their life that are simply not true. Attributes Of A Successful Entrepreneur in Guide and these are the seven biggest myths that I continuously hear.
1. Being an Entrepreneur is too risky for me.
Starting your own business in these days is not too much more risky than trying for any other corporate job. At a corporate job you can be laid off at any time, Famous Business Entrepreneurs List have benefits cut with no reason, and work long overtime without being compensated for that. If you are student as well, the risk can’t be that bad. It’s not like you have a mortgage or family to support if it fails.
2. I am too young to start my own company
Being young is not a negative, in fact in most cases it’s a positive! When your young you have the passion energy and enthusiasm that is needed to work 14 hour days day in and day out for a company you believe in. Most older people with more experience just don’t want to do that any more.
3. I have no experience
Again, Attributes Of A Successful Entrepreneur this can work towards your advantage. Your lack of experience means that you are looking at everything with a fresh set of eyes. You wont get stuck in the “we have always done it that way” kind of thinking that can stop other entrepreneurs. Running your own company will also build much more valuable experiences than a job flipping burgers will at your age.
4. It is not the right time for me to launch a business.
As a student you have a schedule that is completely flexible and large blocks of time between classes and on breaks to start a business. Campuses have tons of resources you can harness as well, List Of Entrepreneurs And Their Business so there really has never been a better time than now.
5. If I am running a business my grades will fall.
Running a business takes organization and discipline. If you are organized and disciplined in one area of your life it will probably pass over to the other areas of your life as well. Many student entrepreneurs I know actually report their grades increasing once they started a business.
6. Student businesses are just small rinky-dink operations
Some student business that started as just rinky-dink operations were Dell, Google, and Microsoft. You have probably heard of those companies right? That is because they were great ideas and hard work created products that had potential to expand from their small beginnings. Your business can too!
7. I don’t have any money! I can’t start a company
Everyone seems to think only millionaires start companies. This is simply not true. Most companies are started with the founders savings and no investment capital. Start with what you can and work hard. Things will come together if you want them to come together. You will be amazed at what you can do!
Attributes Of A Successful Entrepreneur in Guide?
Why should you consider refinancing real estate investments instead of selling them? Maybe you've owned a rental property for years, you've paid down the mortgage, the value is up, and you want to cash in on that equity. You will do better to refinance. Here's why.
There are two problems with selling. First, selling means paying a large capital gains tax. You can avoid this if you reinvest through a 1031 exchange, but then the point is that you want your money, right? Second, you'll be giving up your inflation-indexed retirement plan. A good rental property generates more income as rents go up.
Refinancing Real Estate Investments Is Better
If you refinance, you can get much of your gain out of the property, without paying a penny in taxes. You see, borrowing money is not a taxable event. Take your loan proceeds and spend them however you want, and still keep your rentals. Doesn't that sound better than losing a big chunk of your equity to taxes?
Now, let's look at an example. We'll suppose you have owned a small apartment building for several years. Let's say you bought it for $340,000, with a down payment of $80,000. Interest rates at the time were at 9.5%, giving you a payment of $2,106 monthly on the balance of $260,00 (30 year amortization).
The property is now worth $560,000, and you owe $220,000. Your cash flow is around $2000/month. Now, how do you get at some of that equity? If you sell, you will give up the income, AND pay a big part of the profit in taxes. What happens if you refinance?
If a bank will loan you 70% of the value, that would be $392,000. Pay off the first mortgage, and you are left with $172,000. You can spend it any way you want, and no taxes are due.
It gets even better, especially when interest rates are low. If the new interest rate is 6.5%, your new payment will be $2295. In other words, you get $172,000 to spend any way you want, and you still have over $1,800 cash flow each month, from an inflation-indexed retirement plan.
Here is an even better scenario: Spend $50,000 of the loan for high-return upgrades to the property, such as carports and a laundry room, and raise the rents. You could have $122,000 left over to spend any way you want, AND have higher cash flow than before! Isn't that sound better than selling your retirement plan? When you want that cash, consider refinancing real estate investments.
Entrepreneurs - Your Well Being Should Come Before Profits
My husband and I work together on cutting wood for our heat source for the winter months. I enjoy helping him as much as he enjoys the help. I am an entrepreneur and he is a man who enjoys the comforts of a 9 to 5 job. Both of us take pleasure in being out doors in nature. It may be the only thing we have been on the same page about during our 20+ years of marriage.
One particularly nice morning my husband asked me to go into the woods to collect the logs he just finished cutting. I joyfully agreed but when I got out there he was already returning to the house to tune up his chain saw. "No problem", I thought, "I'll just keep busy until he comes back."
As I looked around the parameter of the forest I couldn't see the log he said he had cut up. Going deeper into the thicket of tall brier's and spindly trees, my clothes were being pulled and torn, thorns were cutting my shins and my unhealed broken ankle began to throb from stepping into holes.
I eventually found the log he had cut up and looked around for a better path to get back to the road. "Surely he cut one for me." I thought. "We just discussed this yesterday. Does he really expect me to lug this hard wood such a distance with a hurt foot and without a path?" Within seconds of looking around it became obvious there was no path to get back to the road besides the trail I had just made.
By the time I had taken out two arm loads of wood, I felt beat up, my skin was torn up and I was totally focused on my husbands lack of consideration. "This is how he does everything!" I exclaimed exasperated. "He needs to understand that the way you do anything is the way you'll do everything and this is why we're never on the same page!"
By the time he returned I had spewed all the negative thoughts in to the wind and I couldn't speak. I no longer wanted to lay into him because I knew my thoughts had shifted to an epiphany. I realized the truth. In the years I've wanted him to be involved in my business, I had never once made a clear path for him either. I want him to enjoy helping me in my business, but I have never actually shown him the possibilities of how it could be done. How would he know what the joys or pitfalls could be unless I cut a clear path for him to?
I used this wood cutting experience because as entrepreneurs its important that we allow our spouses paths to be easier to journey through. If you desire to be on the same page then ask yourself one simple question: If I could cut a path for my spouse to understand my work, what would that path look like? If you really give this some thought I think you will find ideas you've never thought about before.