Busting myths: Unconventional truths about launching your dream business

Howdy UpFlippers! 

We're coming in hot today… 

Do you assume the road to entrepreneurship is paved with must-haves like a flashy LLC, a decked-out team, or a wallet bursting with investor cash? Well, today, you're in for a surprise. We're going to debunk all of those myths and show you how you can start a business without any of that.

The truth is, you're not the only one who thinks you have to have all of those "things" in place before you start. That's what's keeping most people out there from starting their first business, maybe their dream business that they've been pondering for years.

So…if you're constantly hearing those voices:

"I need to go hire people, but I've never done that. How do I do that?"

"Where do I find investors for my idea?"

"What happens if my idea isn't good enough?"

It's time to hit mute on the doubt and take that first step forward. Everything else is FLUFF. Here's why…

Myth #1: You need an LLC to start your business

An LLC is not a prerequisite for starting or testing your business idea. Having a few legal papers sitting on your desk somewhere doesn't add significant value to your idea. Your first step should actually be validating your idea with a few customers, showcasing your product or service, and gauging their interest levels. 

Regardless of whether your business is service- or product-based, create something tangible that you can put in your customers' hands or give them a trial they can experience in person.

Here's the process:

• Give them a sample or test run. 

• Ask for feedback.

• Make necessary improvements.

• Find your next 5-10 customers. 

And if you have to charge those first few customers, do it at a fraction of the price. Get a reaction. Are they hesitant to pay? Are they happy to pay? How do they feel about your price point?

Be bold, ask questions, and be transparent about this being your first step into starting your own business; if people like what you're offering, they'll support you by telling their friends and family. You'll be surprised—especially if your product or service solves a real problem for them. 

Now, let's clarify when you should form an LLC. When things start to move for your business, when you find your stride and make consistent cash flow, it's a layer of legal protection for you and your business.

Pro Tip: When you start to think about hiring people or looking for outside investors, tools like Stripe Atlas make the LLC formation process easy and seamless so you can jump right in.

Myth #2: You have to hire people from the start

This is the most expensive myth that most people fall for. They think "business," and the first things that come to mind are a big staff, office space, and a bunch of other extras.

Yes, you may want to hire people at some point, but you don't need to from day one. Why? Because having employees or contractors doesn't make your business an overnight success. In fact, it could be the single point of failure as you start accumulating overhead costs before you make any money. 

So what's the solution? You have to start lean. Solo. Do a lot of the work yourself from the start. Learn the ropes while wearing many hats. This will give you an edge when it's time to hire or subcontract people.

• You won't be in the dark about what the job requires.

• You'll understand how much time the job takes

• You'll know how to use the tools needed to get the job done

• AND, if there is a way to do something more efficiently, you'll have mastered it and be able to teach it to others.

When is the right time to hire? When you can't automate something, or you're spread too thin to do an essential job. Marketplaces like Upwork make it very easy to find people who can fill the gaps in your business that you no longer have the bandwidth for.

Myth #3: You need a perfect website that blows people out of the water

A sparkly, well-polished, animated website sounds great, but it's not the place to invest all your money or effort. A shiny website won't make your product or service better. It's like polishing a car that doesn't run; no matter how much it gleams in the sun, it won't get you where you need to go. 

Focus on fine-tuning the engine—your product or service—first.

Start small and create a quick landing page using a tool like Canva, Carrd, or Squarespace. Describe what your business is doing and have a place where people can learn more about you. Reach out if they have questions or want to work with you. 

The goal is to move quickly, get the word out there, and give people a place to get more information about what you're offering.

Myth #4: Investors are essential for success

If you're starting your first business, DO NOT chase investors from day one. It's a recipe for disaster. Instead, focus on getting as far down the road as possible on your own dime. Bootstrapping allows you to maintain control, make swift decisions, and grow at your own pace. 

If the time comes when you need some level of investment, your self-funded track record will give your business a higher value than asking for money before you really know what you're doing.

Create an opportunity to say, "Look what I've been able to do with pennies. Now imagine how far I can take this with actual dollars in my pocket."

By the time you're really ready to work with investors, you'll understand how to manage your money and where you need to double down to grow your business exponentially. Most importantly, you won't have to give up a large chunk of your business—you'll have the upside of the deal and can retain ownership.

Myth #5: A breakthrough idea is the only way to succeed

In reality, execution trumps idea. A large percentage of businesses are just better versions of existing businesses.

Look to solve a small problem rather than thinking about how to launch a rocket into space or build an electric car. Existing business models that need an upgrade are usually where the real opportunities are.

Here are a few examples of small (and crazy!) ideas that went big:

Skype vs. Slack – Skype was the ultimate communication tool…until Slack came around and created essentially the same thing but with a twist: "Communication for teams." Most businesses were using Skype to communicate internally, but it wasn't tailored for them. Slack changed that forever. 

Blockbuster vs. Netflix – Netflix took the basic concept of video rental and executed it with a twist, initially with mail-order rentals without late fees and eventually by shifting to streaming, fundamentally changing how we consume media.

Taxis vs. Uber/Lyft – Uber and Lyft revolutionized the personal transportation industry not by inventing the taxi cab but by refining and executing the concept with technology, offering a more convenient, user-friendly service.

Hotels vs. AirBnB – Airbnb didn't invent lodging. It reinvented how people find and book accommodations. By executing the idea of home-sharing through a reliable, user-friendly platform, Airbnb became a giant in the travel industry.

None of these were novel ideas; they're just better variations of the same use case with an added layer of convenience and a better user experience. 

You can find success in a business simply by refining existing concepts with exceptional execution and customer service, proving you don't need to reinvent the wheel—just make it smoother.

Beyond the myths

Realizing that these entrepreneurial myths are not barriers but misconceptions you've been spoon-fed can lift the weight off your shoulders, allowing you to pursue your first business with more confidence and clarity.

Each step of the journey, from idea validation to strategic growth, is a learning opportunity. By focusing on creating value, responding to feedback, and adapting as needed, you're doing way more than figuring out how to make money: You're cultivating a resilient, flexible, and customer-focused business on your own terms.

To recap the myths we've busted…

Myth #1 – LLC Not Required to Start: Starting lean means validating your idea with real customer feedback before worrying about legal structures; an LLC can wait until your business model proves itself.

Myth #2 – Early Hiring Isn't Essential: Grow your business solo at first to keep costs low and gain invaluable firsthand experience. Hire only when your business's growth demands it.

Myth #3 – The Perfect Website Isn't a Priority: Focus on creating a simple, functional website that meets your customers' needs; it's the engine of your product or service that drives success, not the polish.

Myth #4 – Investors Aren't a Startup Necessity: Bootstrap your business to maintain control and make swift decisions, seeking investment only when you've demonstrated what you can achieve with limited resources.

Myth #5 – Breakthrough Ideas Aren't Mandatory for Success: Execution and customer experience often outweigh the novelty of an idea; improving upon existing concepts can lead to significant success.

Woah, check these out…

📖 Read our 13-step guide to entrepreneurship while you wait for the UpFlip Academy to launch

💡 Speaking of business ideas… here are 21 unique ones to spark your inspiration

🔥 Alleviate those economic worries with these 7 “recession-proofing” tips

🎙️ Don’t miss Episode 115 of the UpFlip podcast — learn the principles that helped one entrepreneur scale to $1M/year

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