Overcoming Your Fear of Failure
If you want to start a small business but aren’t sure where to begin simply because you’re afraid of failing, you’re certainly not alone. Many small business owners – or potential small business owners – miss out on the opportunity of a lifetime for starting a small business simply because they’re afraid of failure.
Luckily, Daniela Baker from CreditDonkey shares a few steps you can take to help you overcome this fear of failure and get your small business off the ground. Here are a few ways you can start to overcome your fear of failure today:
Discover the cost of inaction
If you’ve been dreaming of starting a small business, there have to be some strong motivating forces behind that dream. Do you want to be your own boss? Do you want to provide your family with more financial freedom and security? Do you simply want to do what you love and love what you do? Consider the reasons that you want to start your own small business, and then consider what it will cost you to not even try. While failure could be costly, inaction could be even more so!
Do plenty of research, and come up with a plan
Before you can even consider starting a small business, you need to come up with a plan. This involves hours’ worth of research into your market, your type of business, your financing options, and many more things. The more research you do, the better your business plan can be. With a better business plan, you’ll feel more prepared and will be less likely to fear failure.
Come up with a backup plan
It’s always a good idea to start off with a backup plan, as well. Decide how long you’ll work at your business before you have to change things or give it up entirely. Decide what you’ll do if things don’t work out or if you decide you need to try again later. Make sure that you’re also protecting your personal assets in the process. One of the scariest things about starting a small business is the fear of losing your home and personal possessions, but a good lawyer can actually help you set up your business so that your liability only extends to business items – not to your personal items.
Save, save, save
Another cause of fear for many entrepreneurs is what will happen to them financially while they’re starting a business. Hardly any businesses turn a profit for the first few months – or even the first few years. You need to come up with a financial plan an emergency savings so that you can create your business. This may mean starting your business on the side while you hold down your regular job, or it may mean learning to live on just your spouse’s income while you’re starting your business. In any case, it certainly means that you need to have a significant amount of money in your personal savings account before you get started. This way, if you have an emergency, you can finance it without panicking. Though saving up means delaying the start of your business, it’s definitely worthwhile if it gives you more peace of mind and gumption to go after your business goals once you get started.
Find someone to answer questions
Talk to another small business owner, a group of small business owners, or a small business organization in your community when you need help. You don’t know everything about starting a small business, even when you’re in the middle of it, so knowing where to go for help is vitally important. Make sure you have resources for help during your planning and start-up phases, and you’ll be much less likely to be stalled by your fear of failure.
Consider various financing options
Of course, one of the major fears of small business owners at the start of their businesses is financing. Do you find investors, or ask family members for loans? Do you personally finance your business, or go to a bank? Do you get a business credit card, or not?
It’s a good idea if you work with a variety of flexible financing options. For instance, you might use a business loan from a bank to get your basic materials and supplies, but you might also ask your parents or other family members in financially sound situations for personal loans. Business investors can also be helpful, so long as their investment doesn’t mean they get control over all your business decisions, which can be frustrating and harmful for new business owners.
A business credit card can also be a good option for day-to-day financing, especially once your business is bringing in enough money to cover the payments. Just make sure that you’re using this financing responsibly by keeping your balances at or below 50% of your credit limits and by using your credit cards for certain basic purchases that you’ll be able to pay off within a reasonable amount of time.
These steps can help you feel more prepared for starting a small business, so that you can overcome your fear of failure and just make it happen. Remember, there’s never a perfect time to start a small business, but by being prepared and thinking through all your options, you can create a great business at any time.