TAX BASICS

The 7 most common fears of starting a business

A lot of people would like to commence a business of their own. However, we all have our own lives and responsibilities, which we have to fulfill. If I leave the job, how will I meet my expenses? What if I am wrong? Will I let people down? Will I get a good job if I fail to succeed in my venture? Every individual goes through all these kinds of thoughts before starting their own business, which pulls back the majority. Fear is not an uncommon thing limited to a few. Everyone has one or the other fear and, people have various fears while commencing their own business. Let us discuss some of the roadblocks and how you must overcome these fears of starting a business.

The fear of failure

               The most common reason and why the majority hold themselves back at the thought process. Will I be able to implement the plan and be successful or, will I be a failure. If you fear your success, it affects your mind and brain, restricting you from performing to the best of your abilities. Guaranteed success is not an option that everyone can choose. If it was then, the world would be filled with millionaires and billionaires. Success comes for individuals who believe in the idea and work. Our mind-set is the key to how we perform. 

Billionaire and business tycoon Sir Richard Branson of the Virgin Group said that failure is one of the most valuable learning tools. It is what you learn from your mistakes and, the ability to bounce back ultimately leads to success.

Considering other people’s opinions.

                              One of the major fears of starting a business is listening to other’s opinions. If you are someone who wants to start a business and, you say this to your peers. Even if there might be motivations, but people tend to overthink what, if I fail? This is not helped by some of the pushbacks which you receive. 

People will always have different viewpoints, and objections are bound to arise. If we start doubting yourselves and consider others’ opinions, then we are holding ourselves back. You have to believe in yourselves and prepare for an onslaught from your peers.

The importance of the right state of mind has been widely mentioned by Napoleon Hill in his best-selling book Think and Grow Rich. “Opinions are the cheapest commodities on earth. Everyone has a flock of opinions ready to be wished upon anyone who will accept them. If you are influenced by opinions when you reach DECISIONS, you will not succeed in any undertaking.” – Napoleon Hill.

The only person with any loss is you, so you should forget about all the negatives and concentrate on what you want to achieve. Set proper targets and milestones for yourself to ensure you are on track. You will feel better when you complete these milestones.

The fear of starting a business due to lack of knowledge

                               If knowledge was the deciding factor for success, many of the leading minds would not have made it. By no means this means you can wake up and start a business. Yes, you need knowledge in your industry, but more importantly, you require knowledge to commence the business and operate accordingly.

The business has a dynamic environment where you learn new things every day. If you want to start after you become perfect. Then you might have to wait for a long time. You start and, then you learn along the way. It takes time to be an expert in any sector or industry. You might be close to being an expert in some field and, then there will be another innovation that comes along. That’s just the way how things work today. Start and then strive to be the best.

The risk involved is a major fear of starting a business

                               The risk factor for any business is high. There are a lot of factors that contribute to the risks and that change from industry to industry. Success comes for individuals who are willing to take the risk. An economic theory proposed by professor and economist F.B. Hawley states profit is a reward for the risk taken in business.

Lack of Funds

Cash is the lifeblood of business, and most of the budding entrepreneurs lack the capital to commence their venture. Even if it’s bootstrapped numerous, organizations run out of money. According to an analysis conducted by CB insights, lack of funds is the second highest reason why startups fail. 

Therefore effective management and utilization of cash are vital for your success. There are more opportunities today to raise capital from angel investors and different events. But if you are unlucky, just take one step at a time. Sell your product and reinvest the money into the business. The road will be long and hard, but perseverance and good business acumen will pay off.

Customer Response

It is essential to find out that there is a real need for the product in the market. In the CB insights analysis, the biggest reason causing the failure of a start-up is the lack of demand for the product. Our ideas are always going to be close to our hearts. Be true to yourself and consult with as many potential customers as possible. Gather the data and find if there is a need for the product or service in the market. This needs to be done before a ton of money is invested in the business. Once need is established, you can set up your go-to-market strategy for your product or service.

Competition

The possibility that your product or service has a competitor in the market is very likely. If you do not have a competitor, it does not guarantee that it’s good news. It could be due to the lack of need for the product. It could also be a new category that needs a massive amount of money to propel the business.

 How to overcome the fears of starting a business?

                             Don’t most of us hope that we know how to overcome our fears of starting a business? Maybe not everyone but most of us have this wish somewhere in us. The truth is there is no secret formula on how to do this. If we look at all the leading organizations and entrepreneurs in the world. At one point, they have faced challenges and, even they would have faced similar fears.

But they have overcome those fears and found a way to succeed. What is ubiquitous in the successful entrepreneurs of this generation and past generations? Their perseverance, belief in the idea, and execution brilliance. Is there a way to overcome your fear? You need to ask yourself the question if you are ready to make the leap of faith. In the end, we all have our own lives and responsibilities. We have commitments for which we are responsible. So you need to decide if the time is right for you to start chasing your dreams.

“I knew that if I failed I wouldn’t regret that, but I knew the one thing I might regret is not trying.” 

— Jeff Bezos

Sidharth Bharthan Menon
CEO, taxtotal​