Fallacies Versus Realities in Financial Planning and Management Among Entrepreneurs: Lessons from the Trenches

This paper summarizes fallacious thinking about financial planning and management among entrepreneurs and small business owners. This thinking often continues from start-up through initial liquidity and beyond and creates problems for the venture. These problems can usually be avoided with an understanding of the realities associated with fallacious thinking and following some fairly simple "rules" enunciated by the authors.