Did it ever occur to you that you saw a recent kind of business and all of a sudden it struck you that you once had a comparable idea? If you are anything like me you must have had several ideas over the past and would have felt the desire to start an enterprise, and out of those ideas you might even have pursued some, which you felt more confident about. Let me guess, first you tried to learn how to start a small enterprise and then you started laying out a business plan and while contemplating, either your doubts about the plan started getting deeper and deeper because you realized that the merchandise or service is not compelling enough to be the next “Google” or you thought that it’ll be extremely big of a responsibility and would necessitate too much hard work, or perhaps you even decided to carry on with the idea and started a business believing that the hard work will be compensated, but it never did!

It happens to almost every one of us and often times we skip or even fail on some great ideas mainly because of some popular misconceptions. There is no 10 step plan or method that can tell you how to start a new business and make it successful but there are some major misconceptions that usually become the reason why most small businesses fail. I am going to discuss two of the most important factors of a business failure.

1- You need to have a unique and compelling product/service.

When people talk about how to start a small business they usually seem to have a greater emphasis on the need of a compelling product. Even if it can be good to have a product or service that can sell itself, the reality is that not every market provides such advantage. If you want to start a small business and are waiting for that bright idea - the odds of just coming up with such an idea are probably one in a million. That's even worse than the odds of falling out of a bicycle and breaking your neck.

2- The Business plan is just a formality.

Most people seem to think that a business plan is not needed for a small business or a formal plan is only needed when you are looking for an investor or applying for a loan. A business plan is the best way to learn how to start your own business, because every business opportunity is unique in itself. First of all I want to emphasize that it's not just a formality. The business plan is perhaps one of the most important part of the process for a startup business because it shows all interested parties including yourself about how serious you are about your business. An all-inclusive business strategy gives you the idea about your competition, market requirement, feasibility of a small business opportunity and many more contributing factors. You can’t expect your business to be successful if you don’t know your competition and if you have not done an wide-ranging investigation about whether it is an opportunity worth pursuing or not. All the hard work in the world would leave no difference if you are not familiar with these essential aspects of your enterprise.