28. November 2017

Unfortunately, fear is a much larger motivator than potential success. That is why out of a population of 326 million people there are less than 10% who ever elect to go into business for themselves.

Fear of failure, financial fear, and fear of risk are the big three that you will have to overcome if you plan on joining the few who become small business owners. It is those small business owners who overcame their fears to create half of all jobs in the United States. 60 million people have jobs due to small business owners who overcame their fears and went for it.

Having these fears is not irrational, actually they are well founded. More than half of all small businesses fail within the first three years. The largest reason for the failures are financial in that there was not enough capital to sustain the business which in turn lead business owners to risk their personal assets thereby covering all three major fears; failure, financial, and risk. So what do you do about it? We suggest you “plan away your fears”. Completing a solid business plan and getting help to review it and pick it apart go a long way to dispelling those fears. Let’s address them.

Fear 1 – Failure
Failure can be planned away by fully understanding the market for your business. Who will buy what you’re selling? How much will they spend for it? What are competitors selling it for? How much does it cost you to sell it? Is the market growing or shrinking? Are there more players in the market now than five years ago or are there less? There are a hundred more planning questions that can be asked which after you answer them will provide you with an answer to the question of “can you succeed at this or not?”

Fear 2 – Financial
Since we already know that the most common cause of business failure is running out of money, then it would follow that this is the most important part of your planning. How much money do you have now? How much will you need to make a go of this? What are your options if you hit a cash shortfall? Where will additional capital come from? How quickly can you access it? How expensive will it be to get it? Planning for both the upside and even more importantly the downside will give you the ability to overcome the financial fear and should also tell you if you should begin or not.

Fear 3 – Risk
The fear of risk comes in so many forms. One major form is responsibility. Who are you responsible for? The more people you are responsible for the greater the fear of risk will be. That is why you see so many successful “single” business owners. Young men and women who don’t yet have anyone to be responsible for other than themselves. Older men and women whose families are grown and out of the nest. So single people of any age who have the ability to take risks without having to account or explain or get approval before they can freely jump in. To overcome the risk fear you either need to have only to gain your own approval or you should get those you are responsible for involved in the decision.

Becoming a small business owner not only involves taking risks, it also takes up alot of time. Lots of your time required to begin, maybe more to grow, and even more to succeed. Detailed, researched, and educated planning is the key to overcoming all three of these major fears if you are going to not only decide to start your own business but you also want to succeed at it.

The old quote “Failing to plan is planning to fail” is oh so true when it is about becoming a small business owner.

Business Planning, Business Startups, Entrepreneurship, Pre-Qualify for Business Loans