8 Financial Myths to Ignore

08/27/2015 01:45 pm ET Updated Dec 06, 2017

It's easy to get caught in these outdated financial "tips" that do more harm than good for your business. These 8 successful entrepreneurs set the record straight.

A. Company Growth Equals Profit Growth

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I always hated when people asked me about my company growth based purely on employees and net revenue. It's easy to get caught up in growing your revenue, but don't lose sight of profit. Many companies actually decrease or even lose profit during the course of growing revenue. Look at your long-term goals, and don't judge the success of yourself or others based purely on revenue and employees. - Allie Siarto, Allie Siarto & Co. Photography

A. Working More Means More

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I hear all the time that you should be working a lot more. That the more you work, the more you'll get out of your business. That's simply not the case. I find that when you work a ton, you get tired and start not working productively. Work smarter, not harder. - Peter Daisyme, Hosting

A. Money is a Mindset

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I have heard salespeople (for software services, etc.) suggest that the readiness to spend money was a "mindset" issue; you should stretch yourself when you "felt" ready. Dead wrong. If you are struggling to keep your financial footing, adding bills will only cause greater stress and take you away from your mission. Take care of your overhead first, and add services when income stabilizes. - Nicole Munoz, Start Ranking Now

A. Go With the Highest Bidder

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When trying to get funding for your business, it can be really tempting to take the highest offer regardless of their term sheets. Everyone tells entrepreneurs to take the money and never look back when in actuality taking a lot more money sets you up sometimes to meet requirements that you could probably never reach. My advice is to rather grow slow than burn out! - Cody McLain, SupportNinja

A. You'll Always Have Accounts Receivables Issues

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One our bankers just asked our firm about this, as we're in the midst of buying a building. I said, "no, we don't have accounts receivable issues." The reason is: all of our clients, even Fortune 500 ones, pay us either by credit card or direct deposit. I haven't waited for a check in years, and it's just a simpler and easier way to manage cash flow. - Beck Bamberger, BAM Communications

A. You Need a Ton of Money to Start a Business

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Today, there are so many tools to build an audience, connect with consumers and generate revenue. Individuals have the power to be publishers, build email lists and monetize their offering quickly. Expert freelancers can help you move fast and lean without the overhead costs of hiring employees. You'll need funding to scale a business, but not to start one and make progress against an idea. - Brendon Schrader, Antenna

A. Closing Your Books Takes Longer Than 15 Days

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You should be able to get your books closed by the middle of the month following, at the latest. If not, you don't have the right process with your team, vendors and customers. Define your close process and stick to it! - Marjorie Adams, Fourlane

A. Avoid Outside Investors

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By avoiding outside investors, you may sacrifice the immediate gratification of quick growth for a more strategic, controlled pace. However, in the long run, you will maintain full ownership and control of your company. Building a successful and sustainable company is a marathon, not a sprint. - Matt Telmanik, CCS Construction Staffing

These answers are provided by the Young Entrepreneur Council (YEC), an invite-only organization comprised of the world's most promising young entrepreneurs. In partnership with Citi, YEC recently launched BusinessCollective, a free virtual mentorship program that helps millions of entrepreneurs start and grow businesses.