Business Myths

When opening up your own business, it is important that you know what to expect and are not misled by some common myths about entrepreneurship. In order to help you learn what is fact and what is fiction, we’ve compiled a list of common misconceptions about starting a business.

Myth: Opening your own business will allow you to spend more time at home.

Fact: In truth, starting your own business is a very demanding endeavor. Successful business owners are typically working much more than their employees, and will not be able to kick back and relax until many years after their business has gained notoriety and become profitable.

Myth: You can write off all your expenses on your taxes.

Fact: While this is an enticing thought, it is untrue. The Internal Revenue Service monitors small business taxes, and any suspicious “write offs” could be investigated. The only expenses which should be written off are ones that directly apply to your business. An easy way to determine this is by asking yourself “Would I have paid for this without my business?” If the answer is yes, it is not tax-exempt.

Myth: My business should make a profit after six months.

Fact: In truth, even if you’re an entrepreneurial genius, your business will most likely not begin making a true profit until two or three years after start-up. This is because of the initial loans and expenses that you acquired in order to establish your business must be paid off before you can begin making a profit. Even very successful businesses often require several years to repay their overhead cost.

Contact Us

For assistance starting up your own business, contact the experienced Austin business lawyers of Slater Kennon & Jameson, LLP. Call us today at 512-472-2431.