by Mary Eule

This is the most pervasive, far-reaching and detrimental marketing myth of them all! It is an equal-opportunity fantasy whose believers are corporate CEOs; entrepreneurs; male and female; young and old; rich and poor; tall and short; moms and pops; etc.

It is also the most difficult one to correct because the “patient” doesn’t know he/she is ill! It serves as the foundation for prejudice, ignorance and failure and influences all of the sufferer’s decisions and behaviors – personally and professionally.

Ironically, this myth often serves as the very basis for becoming an entrepreneur in the first place. Michael Gerber, in his classic book, “The E-Myth”, says that most small businesses are started by technicians (folks who are proficient at some skill) who have an entrepreneurial “seizure”.

Just because they know how to do the work of the business does not mean that they know how to run a business that does that work. For example, just because a hair stylist knows how to cut hair, does not mean he/she can run a hair styling business.

This is a classic case of not knowing what you don’t know. For instance, any business run in the U.S. today has to understand how the following business requirements (just to name a few) impact them and how they must comply on a daily/monthly/yearly basis:

• Payroll taxes
• Workmen’s compensation
• Local and State Income Tax Laws
• Local and State Sales Tax Laws
• Business Licensing
• Profit and Loss Statements
• Overhead Expenses
• Financial Reporting Requirements
• Employee Management
• Human Resource Regulations
• OSHA Regulations
• Social Security, Medicare Benefits
• Withholding Taxes
• Actual costs of running a business
• Quarterly Tax Payments

The problem arises when technicians assume that all they need to know is the work of the business, not how to run a business. The actual costs of owning and operating your own company are far greater than the expenses associated with your rent, office furniture, utilities, etc.