3 ‘Delusions’ Keeping You From Starting a Business and Building Wealth, According to Ramit Sethi
Written by
Peter Burns
Edited by
Amber Barkley
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
There are many reasons people start businesses. Running your own business gives you complete control over your decisions and the flexibility to establish a work-life balance that fits your lifestyle. Building a successful business also has more financial upside than working for a fixed salary.
Entrepreneurs start their own businesses for various other reasons, as well, including creating generational wealth, supporting their community and being their own boss. However, even with all of these positives, many individuals quickly talk themselves out of even trying.
Personal finance expert and “New York Times” bestselling author Ramit Sethi knows what it takes to start a business. He also understands the delusions that can throw people off. In a recent newsletter, Sethi detailed three common misconceptions many people have when it comes to starting a business online.
You Need a Great Idea
When you think of the most successful businesses in the world, you might relate them to great ideas. Apple created personal computers that were user-friendly. Google indexed the internet’s information, making it easier for people to find what they were looking for. Netflix created a convenient way to rent and watch movies without having to drive to a rental store.
While revolutionary ideas can propel a business to success, they’re not always necessary. Sethi pointed out that too many would-be business owners wait for “a magical idea to fall down from the sky.” This is the wrong approach.
In reality, a business requires you to uncover the right idea by identifying your skills, finding what customers want and testing your potential plan for profitability. Coming up with an idea for your business is more about hard work than divine intervention.
You Should Wait for the Right Time
Timing is important in many areas of finance, like buying investments or paying taxes. It may seem like waiting for the right time to start a business is also ideal, but Sethi disagrees. According to him, there will never be a perfect time. Waiting until you’ve alleviated all of your doubts will mean waiting forever.
With the opportunities for online businesses, you can start small and dedicate just a few hours a week. Many entrepreneurs are taking advantage of the internet, with a recent report from IBIS World indicating that nearly 30% of all business in the U.S. will be online in 2025.
As your sales grow, you can devote more time to your online business and scale it appropriately.
You Need the Perfect Fit
It’s normal to question how good of a fit it is before jumping into a project or job. However, you don’t need to decide you’re the perfect person to run a business to get started. You only need to determine whether you’re actually interested or not.
Sethi polled his readers and found that more than half of them have entertained the idea of starting a business for years. Being interested in becoming a business owner is enough to get started. If you expect to map out the perfect business model first, you’ll never get your online business off the ground.
More From GOBankingRates
