Starting a business is a scary experience, as even after investing time, effort, and money, there is no guarantee of success. Additionally, a failed business can create financial difficulties and lead to lost time and opportunities. But, even with these risks, millions of aspiring entrepreneurs start businesses each year. Why? Because when done right, a business can help one become financially independent and pursue what they love. Getting cold feet is common among new entrepreneurs, and this article by Mobiritz will explore how to overcome your fears and start a successful business.
Fear of Failing
What if I fail? This question nags entrepreneurs even before they’ve taken the first step toward starting the business. One of the keys to being a successful business owner is to make decisions based on facts and not emotions. To ascertain whether your business has a chance to succeed, your first step has to be creating a business plan.
Your plan should include a list of long and short-term goals and the steps required to achieve them. Additionally, the business plan will have insights regarding your product offerings, manufacturing process, unique setting point(s), and pricing details. Furthermore, include details regarding your sales strategy, distribution mediums, customer demographics, and marketing efforts. Creating a business plan will provide clarity regarding how to transform your idea into a full-fledged business. Expect to review and edit the plan numerous times before you develop a version that provides answers to all your concerns and presents a way forward.
It’s also wise to implement strategies and tools that reduce downside risk. When starting out, for example, using a free logo design tool can provide you with a professional logo without the expense of a designer’s fee. You can heavily customize it to suit your needs, and if it doesn’t quite work out, you haven’t lost any money.
Fear of Uncertainty
As an entrepreneur, you will compete with other businesses for market share, revenue, suppliers, raw materials, brand presence, and many other factors. Additionally, owing to the speed of innovation and the rise of cyber-attacks, business threats can arise from anywhere.
Assuming yourself to have answers to all business problems is an unrealistic expectation. The best way to tackle uncertainty is to have a group of professionals around you with diverse expertise who can guide you through tough times. For instance, a mentor will provide guidance on all steps of the business start-up process including how to get funding, investor pitch preparations, networking tips, and hiring advice. Moreover, at times when you feel overwhelmed, speaking with your mentor will help gain clarity and chart a way forward.
In addition to a mentor, dedicate time towards growing your network by attending networking events, becoming a member of incubators, and reaching out to professionals on LinkedIn.
Fear of Stagnation
As mentioned in the previous point, new businesses face cutthroat competition from the get-go. As an entrepreneur worrying about your business’s potential to grow is a valid concern. If you’re a first-time business owner, consider choosing a business type that is simple to manage and scalable. One of the best options is affiliate marketing, which involves promoting products and earning a commission on the number of sales made through your efforts. As an affiliate marketer, you do not need to buy inventory, supervise manufacturing, or order fulfillment. Products can be promoted through a blog, social media, or a combination of both.
Fear of Earning
As much as 79% of small business owners are unable to pay themselves due to unpaid invoices. Bad money management combined with late payments can lead businesses to the risk of closure. As an entrepreneur, you’ll need to take steps to safeguard your business from this predicament and have a reliable revenue stream.
- Enter into Contracts: According to Concord, whether it be a new or repeat client, always enter into a written contract that states due dates, amount payable, and penalties for late payments. A contract is a legally binding document that can be used to make defaulters liable for non-payment.
- Use an Invoicing Software: Through software, you can send automated payment reminders and invoices to clients on specified dates. When choosing your invoicing software, opt for one that provides clients the option to make payments through digital invoices. This reduces delays and prevents clients from having non-genuine reasons to skip payments.
- Use Industry-Specific Software: Regardless of your industry, you should seek out software solutions tailored to it. For example, easy accounting software for construction businesses makes job costing easy while also integrating with other industry software products. And it’s both cloud-based and scalable.
Running a business will always involve an element of risk. But, rather than letting the fear of failure deter you from starting a business, utilize the power of planning and networking to find solutions for challenges and make your entrepreneurship dreams a reality.