Before launching a business, many entrepreneurs have idealistic assumptions – but these quickly go out the window once you’re in the thick of it!
In this article, small-business founders across Australia reveal the biggest misconceptions they had before starting out, and what they wish they’d known earlier.
If you’re selling, you’re successful
A few of the business owners we heard from had a big misconception about sales – i.e., that money in the bank meant business success. These entrepreneurs did get very far into their business journeys before realising that revenue is just one part of the equation.
Joshua Uebergang, Owner, Digital Darts: “When I first got into eCommerce, I believed that strong top-line growth meant the business was healthy. After 15 years and working with over 100 Shopify brands, I’ve seen how dangerous that mindset can be. I’ve seen businesses collapse after explosive growth simply because they didn’t know their LTV-to-CAC or couldn’t absorb rising ad costs or thinning margins. Founders need to be just as obsessed with profit and retention as they are with revenue. That’s what keeps a brand standing when things get tough.”
John Beaver, Founder, Desky: “Before starting the business, I thought strong sales would automatically mean success. I believed that if revenue kept climbing, everything else would sort itself out. I did not understand how growth could expose every weak point you have.
“If your support team is small, more orders just mean more strain. If your supply chain is shaky, higher volume turns delays into serious problems. I was so focused on increasing output that I underestimated how fragile things could get when operations were stretched.
“It took time to understand that growth needs structure. Without solid systems behind it, more demand only makes the cracks wider. Profit, consistency, and customer experience matter just as much as topline numbers. I learned that too late in the early stages.”
Good products and services are enough to sell
If you’re an entrepreneur, you’re likely pretty confident in your own skills. It’s easy to assume that your mastery in one area will be enough to carry a business; easy to realise only later that customers won’t recognise your genius without a little help from marketing, sales, or PR.
Dorian Menard, Founder, Search Scope: “I believed that when I started my business the product or service should be great and that would ensure that customers demand it. Soon I also came to know that marketing, sales and customer relations were equally important.”
Kat Milner, Founder/Chief Tech Ninja, Simplify Your Tech: “The ‘If I build it, they will come’ is the big one. When you start a business, they don’t tell you how to market.”
Jasmine Parasram, Founder, Jasmine Designs: “I naively thought I’d escape corporate bureaucracy for pure creativity. Instead, I became the CEO, accountant, salesperson, and janitor of my own tiny empire. Design school conveniently skips the chapter on chasing invoices and managing client expectations.”
Parasram said she does about 30 per cent creative work to 70 per cent business admin – but she has found a silver lining.
“Being forced into the business side actually made me more creative,” she said. “I started treating every proposal and client conversation as a design challenge. Turns out creativity isn’t just what happens on the canvas.”
The bigger the business, the less work you’ll do
Some of the entrepreneurs we heard from said they thought scaling meant stepping back. While this is the case for some business owners, it’s certainly not true for all.
Sendy Raymond, Founder, Your Bali Wedding: “One misconception I had before starting my business was that the more successful my company became, the easier it would be to step back and let things run on their own. However, I quickly realised that business ownership requires constant involvement and attention to detail.”
Alexander Amatus, Psychologist, TherapyNearMe: “I thought that once the business gained traction, things would get easier. In reality, success brought complexity. Scaling a service-based business, especially in mental health, doesn’t mean handing things off; it means building systems fast enough to keep up with growth.”
Being your own boss means freedom and flexibility
Far and away the biggest misconception we heard was that business ownership equals freedom and flexibility. Many of these entrepreneurs had started their ventures with dreams of work-life-balance – only to be rudely awakened once they were in the thick of things.
John Beaver, Founder, Desky: “When starting a business, you may be handling everything from logistics to customer service, product development and even marketing. Entrepreneurs often find themselves working 60 to 80 hours per week in the beginning. In the first stages, your commitment and ability to put in the hours will determine if the business survives much more than the idea of a “flexible” schedule.”
Morgan Wilson, Founder, Creditte: “I assumed business ownership would mean greater flexibility and fewer hours. In reality, it meant becoming the person everyone relies on – for decisions, direction, and delivery.”
Paige McIness, Owner, Little Change Creators: “I don’t have to work rigid 9-5 hours, nor beg to take a day off. However, the downside is that I’m often working late at night or on weekends. And, as the business continues to grow, so does my to-do list. It can be impossible to switch off as I juggle so many aspects of the business, from product design and development to admin, social media and finance.”
McIness had a few words of advice to those in the same position as she was.
“So, to any mums contemplating starting a business to be home with their children, I suggest doing so with caution. It does offer many rewards but comes at a price, to you and your family.”
Passion is all you need
Finally, a classic one: That passion is the one ingredient you need to make a successful business.
Morgan Wilson, Founder, Creditte: “There’s a misconception that success is quick if you’re passionate. Passion is essential, but without systems, support, and stamina, it’s easy to burn out.”
Samuel Levi, Founder, Luxesticks: “I thought if you had a great product and worked hard, success would naturally follow. But running LuxeSticks has shown me it takes so much more strategy, resilience, constant problem solving, and wearing about ten hats at once.”
Joanne Newell, Founder, Publish In Style: “For some reason, I thought that starting my own business wouldn’t involve a lot of hard work. I knew there’d be heaps to do, but I felt that my enthusiasm would power me through all of it.
Having said that, I think we always look back – no matter the endeavour we’ve undertaken – and think, ‘If I’d known how long it would take, or how much it would cost, or how hard it would be, I probably wouldn’t have done it’. But then we wouldn’t have had the adventure or its rewards, would we?”
