5 Persistent Startup ‘Success’ Myths that are Holding You Back

Humans love myths. Whether it’s Eve eating a bad apple or Odysseus making the long journey home, a good myth strengthens our imagination. A bad myth, however, can impair our judgement or bind us to bad habits and imprudent beliefs.

Remember the memes that went viral on social media a while back: “What People think I Do and What I Really Do”. The entries covered everything from a science student to an engineer, and entrepreneurs were no exception. It highlighted the yawning breach between our self-image and society’s perception about our profession. There is just as much mythology around being an entrepreneur, as being a writer or musician.

There are many myths floating around which can impede the development of some great ideas. Here, we'll destroy some of them and get focused on actually doing the real work of entrepreneurship.

Myth 1: You Need Venture Capital to Succeed

For many entrepreneurs, getting funded is a day of celebration. It is thrilling knowing that there is someone who believes in your idea and wants to invest his or her money into it. It’s also true that VCs can’t see the future -- and for this exact reason, they hedge their risks by investing in multiple startups.

It could be tempting to think that getting venture capital is the fastest way to success -- but this path is definitely not for all business owners. While getting VC funding could be one of many methods for getting a high-growth startup off the ground, it does not guarantee the success. In fact, it dooms many startups: only a small percentage of venture-backed startups ever actually succeed at growing to meet the 10-50x returns venture capitalists demand to make returns on their investment.

Even if you don’t get an offer for venture capital, make sure you don’t jump into business with the wrong investors – an incompatible relationship would spoil your life and certainly your business, too.

For a true thrashing of the venture capital myth, read Reconsider by DHH.

Myth 2: An Idea is Enough to be Successful

The million-dollar idea doesn’t exist -- but million dollar companies do, strictly as a result of outstanding execution. A common mistake by most startups is going in search for an idea so unique that they can totally avoid competition. This strategy, however, doesn’t always work -- especially if the reason for having no competition is because the market is too small or not ready for your solution.

An innovative and fascinating idea obviously inspires. However, it cannot assure the success of your startup. Statistically speaking, most breakthroughs were neither unique, not original. The point here is to craft a better technology -- ideally 10x better -- and fill in the gaps to create an even better product. You don’t need to go very far to find examples: Google didn’t invent search engine, but they improved the consumer experience by providing results that were faster and more accurate than any competitor.

Any idea without execution is nothing. Don’t get too stuck in seeking a “unique” idea – instead, listen, monitor, and adapt as required.

Myth 3: Build a Great Product, and They Will Come

Another belief of failed startups is that once a great product is built, your customers will flood you. But products don’t win, businesses do.

Many entrepreneurs operate under a false notion that the product is so good for their audience to gravitate to it. However, your brilliant product is only half the story. Once your offering is solidified and set to roll out, you have to market it to let your audience know it's available.

It gets worse. If you are a regular reader of TechCrunch, you’ve probably seen this: “We’re just focused on getting users now, we’ll figure out how to monetize later.”

While this strategy might work if you have funding, bootstrapped startups can’t stand around waiting for lightning to strike. In essence, focus as much time on marketing and building relationships with customers as you do on creating and executing your product.

Myth 4: You Can't Compete Against the Giants

Think you are too small to compete with the big players? Do you think that huge marketing budgets of big businesses are insurmountable obstacles? Time to change your thinking: you startup can profitably coexist with established competitors, or compete against in a niche market giants like Facebook or Google are missing. In fact, startups often have no other choice.

You aren’t likely to compete on price alone, but your options are endless, whether in messaging, target customer, or product differentiation. The actions of your business will speak louder than expensive events and campaigns. You need to be faster and more focused than bigger players. Instead of focusing on just the fiscal amount that marketing efforts would consume, shift your perception to things you can accomplish that your competitors cannot. As a startup you can move fast, experiment, and have little to lose.

Small businesses will eventually learn to focus on big guy’s downfalls, which will drive their success. Understanding where your large counterparts are positioned is the key to finding the gaps that you can fill.

Myth 5: Someone Will Steal My Startup Idea

Don’t worry, no idea is unique.

The world is big enough to believe that somebody must have already thought of your idea. Remember how many car-sharing apps emerged onto the scene at the same time – Uber, Lyft, Hailo. Even if your idea is unique, it’s the execution that will set you apart from the others.

In fact, sharing your idea is a great way to drum up interest and get the feedback. You'll test market perception, profit potential, and ideal customer archetypes.

Execution is the key, not the idea. If you’re keeping your idea under wraps thinking someone will steal it, it’s time to let go. Being transparent about your idea will show that you are a responsible entrepreneur who cares about the execution.