The recently released Amway report that was aimed to understand the factors that motivate and obstruct the creation of new enterprises clearly reflected that a major chunk of the respondent suffers from a psychological barrier, as 63 percent of the respondents expressed fear of failure as the biggest obstacle in starting their own business. Their fear is not unjustified. Economy is always changing and the Indian economy especially is quite volatile for a small time entrepreneur to think big and take the plunge. But that did not stop man from chase the dream.
According to Small Business Administration statistics, more than half a million entrepreneurs started small businesses in 2009, and despite economic fears, 70 percent of them will survive at least two years.
Most often it is found that the obstruction is within ourselves and not outside in the world. Entrepreneurs can control only few obstacles, but internal fears and self-doubt erode your ability to succeed.
Jen Groover, author of ‘What If? & Why Not?’ a book about transforming your fears into action, says, “Until you can jump over your inner roadblocks, the outer ones will stay firmly in place.”
31 percent of respondents found “financial burdens up to bankruptcy” as the most important cause for the fear. Non-conducive market conditions (24 percent) and fear of unemployment (23 percent) were the other key causes of the fear.
Here are some of the fears an entrepreneur is bound to face in his journey but as we know, life’s all about how much get hit but how many times we get hit and stand up.
1. Fear of failure
Let’s face it. This fear is in every profession and the failure rate in entrepreneurship is quite high. But, we all do it every day. There are many reasons why business fail- whether it is lack of funds, societal change, the very probable recession and of course grabbing of market shares. A strong mind will keep on evaluating them and come up with strategies.
Now there are two kinds of people. One sees pain as weakness leaving the body and the other sees it as finality. It depends what type you are. But for many entrepreneurs, failure is far more acceptable than living with the regret of never trying.
2. Fear of inadequacy
It is normal human behavior to doubt oneself. And given the number of time an entrepreneur fails or get rejected in their daily life is very repetitive.
Am I good enough for it? Will I ultimately end up having anything? Do I have enough experience? Will this product really deliver?
The best thing is to get ready before taking the field. Do a market research if you doubt the product about the idea if you doubt it. Take public speaking lessons if you lack confidence in it. Sit quietly and think where you went wrong after a cold rejection. No one see the twist and turns that are up ahead.
No one is ever 100 percent ready to start a business, nor can you foresee every twist, turn and challenge. The key is to move on.
3. Fear of financial stability.
The most common fear, the report in discussion in fact says that 31 percent of respondents found ‘financial burdens up to bankruptcy’ as the most important cause for the fear. No one will believe in your idea on the first go.
You have to plan it, modify and re- modify it with diligence, attention, creativity and a solid business plan, complete with start-up strategies, progress reports and sales forecasts.Having a plan will definitely increases the probability of success and reduce those nervy feelings of insecurity and uncertainty. With the cash you do have, squeeze every penny from every dollar.
The main thing is preparation and patience. Free time is not something small businesses can afford. Make the best use of it. It is a good time for entrepreneurs however that the government and other enterprises are open to listening to their ideas and invest.
4. Fear of Risks.
It is always preferable to start business by investing personal possessions like car, house or jewellery. Studies have found that we fight very hard to keep even the most mediocre job simply because we don’t want to lose it.
That drive at the beginning of the career is very important to have and it comes more from such investments. Most of the time, easy money fails to get us motivated.
Entrepreneurs are often thought to be as big risk takers with many success stories doing the rounds of the net. But the fact is, business owners take calculated risks and accept them not only as part of doing business, but also of living life. So, it is not worthwhile to try something romantic as shown in movies.
Always consider the big picture. Draft a solid business plan and establish a fallback position before taking any risk. Always think the worst case scenario and keep your goals in mind. Remember that action is one of the greatest ways to overcome fear.
5. Fear of What Others Will Think
Didn’t your parents, friends and relatives warn you about how shitty your idea was and wanted you to do a ‘safe’ job instead?
Grover says, “Anyone who chases a dream is accused of having lost it at one time or another. If they all listened, we’d go nowhere.”
It is very important to distinguish between a constructive criticism of someone wise and knowledgeable and the negativity of someone who is envious of your vision and persistence. Other doesn’t necessarily have to have your vision, skills and drive. Hence, it is essential to know whom to consider and what to ignore.
