Starting a business can be chaotic. Success isn't guaranteed. Every day, businesses fail, and countless entrepreneurs end up with nothing to show for months or years of perseverance. It also tends to cause anxiety to think about giving up a steady income for an uncertain, hoped-for reward.
Entrepreneurs are plagued by the fear of failure, from losing key clients to running out of money. Entrepreneurial courage is not the absence of fear but rather the ability to persevere regardless of it. The fears are well-founded: Research indicates that roughly 75% of businesses fail within 10 years (see U.S. Bureau of Labor Statistics data on firm survival rates).
Despite these obstacles, some entrepreneurs choose to plow ahead regardless of what obstacles stand in the way. The following article examines the main reasons why people are afraid to start their own businesses and whether these fears are well-founded.
Top 7 Reasons for Why People are Afraid to Start a Business
In spite of how often entrepreneurs read their affirmations, fears arise every step of the way, challenging them to overcome them. Review the following list of fears a business owner might experience and see how they can be overcome:
Getting Started
When entrepreneurs first start their businesses, they don't know where to begin. Start by finding someone who has already accomplished the goal you are aiming for. Get to know the person and their business structure, and reach out to ask for advice or information. Even if the business person lacks the time or interest to speak with you, you will know that they have met success, so you can as well. You just have to take action. It will all unfold as you proceed.
Lack of Expertise
It's likely that you know enough about your product or service to answer the majority of questions and solve the majority of issues that may arise. Don't worry if you don't feel like an expert yet. You can find answers online if you're unsure what to do. You should never stop learning. Continual learning is essential to success.
Customer Shortage
The idea of providing your skills to the world, wondering if they'll be valued, is terrifying. There won't be a stampede knocking down your door unless you already have a large audience of people ready to give you money. As long as you consistently deliver what's promised in your business, you'll undoubtedly see your profits increase. While you're at it, work hard on your marketing plan, study to better yourself, and be kind to yourself—you've already come a long way.
The Economy
A common concern about starting a business is the state of the economy. Many people who want to start a business assume that the economy is in a slump right now, so now is not the best time. Politicians and journalists who overstate even the direst economic news further reinforce this belief.
'The economy' is actually just the vast, interconnected web of buyers and sellers that accommodates each other through the market and price system. In addition, every transaction involves two parties. Even though some sectors of the economy are experiencing hardships (such as finance and housing), those on the other side of the affected transaction (like foreclosure specialists and storage facilities) can thrive.
Debt
Entrepreneurship can be hampered by debt. Having student loans and credit card debt could make obtaining startup funding difficult. You will still have to pay your creditors even if your business produces income in difficult situations (such as being garnished for wages).
Fear of starting a business is a completely understandable reaction to preexisting debt. Pay off all your debts first before trying to balance both at once. You will be able to focus on business ownership once your financial record is clean.
Family Obligations
Fear of starting a business is not limited to financial concerns. Spending much time with family during the early years of a new business can be difficult. In the end, everyone has 24 hours each day. A ten- or twelve-hour work day leaves little time for spending time at home.
Your main concern may be family time. Do not, however, let your ambitions go too quickly. You may want to discuss with your spouse whether you can make arrangements or sacrifices in the early days of your business.
Things Not Going as Planned
Problems in the workplace provide the opportunity to put things right. Entrepreneurs are likely to have the skills to succeed in the game. If the pins fall, do not be afraid. You can still set them upright again.
No Benefits
Some would-be entrepreneurs are concerned about losing benefits like 401(k) contributions and health insurance. These are serious concerns that should be addressed. Perhaps you or a loved one suffer from a long-standing illness. Suddenly losing coverage could be disastrous in such a scenario. However, not every event is as dire.
It's possible to open and fund self-employed pensions, Solo 401(k)s, and IRAs for retirement on your own. A pool of entrepreneurs may also be able to buy health insurance at a lower rate, which is essentially how large employers do.
What Must an Entrepreneur Assume When Starting a Business
Startup businesses can be daunting, especially for people transitioning from steady jobs. Fear can also be a great motivator if you are venturing out on your own. Manage your stress because you'll feel empowered and committed to your new dream once you do. Afraid to start a business? Making three key changes will help you turn fear into a friend.
Be Willing to be Uncomfortable
The corporate world rewards employees for drawing the line between good and bad behavior, maintaining good relationships with co-workers, and avoiding conflict. If you've been working for the same company for a while, chances are you feel at ease. Your job requirements are probably fulfilled with your eyes closed, and you are viewed as an expert. Then again, when you are your own boss, things can get unpredictable.
Successful business owners are comfortable with discomfort. Understanding that you cannot be an expert in everything will be critical to your success.
As an entrepreneur, finding people smarter than you is essential to supplement areas where you may lack expertise. To trust your instincts, prepare yourself to take risks and try new things.
Adapt Your Mind-Set
Almost everyone associates fear with negativity. It is actually a normal reaction because it shows you are taking risks and dreaming big. You always encounter fear when embarking on a new endeavor.
Those who think of starting a business are naturally frightened of failure. If you don't try, what are you giving up? Rather than worrying about how you might fail, ask yourself, what am I giving up by not trying?
Getting Support
Young entrepreneurs frequently benefit from access to mentors in their local communities and networks. They learn that feeling uncertain is normal and which issues should be addressed immediately and which will resolve themselves over time.
It takes a lot of time and effort to start a small business. When it comes to navigating the process, entrepreneurs can benefit from all the help they can get. Technology has simplified the process of starting a business for entrepreneurs. Planning and production can be automated with business development software programs.
Ensure Your Success With Business Development Software
Many business owners do not finish a business plan after completing payroll demands. The main difference between those who drive profits and those who stumble and return home quietly is their focus.
In order to succeed, one must feed their dreams, starve their fears, and believe in themselves. Furthermore, CEO-ME's business development software allows you to manage, analyze and organize your business in every way. Take your first steps into the world of business with CEO-ME today - try it out for free!