Starting a business on your own is never easy. You have to overcome several challenges to get it off the ground, not to mention the competition you’ll have to face once you start your operations.
The journey to success will not be easy, but the rewards of being an entrepreneur will surely make it worth it.
If you’re having second thoughts about starting your own business, we’re here to help.
In this blog, we’ll discuss some of the most common fears of aspiring business owners and how you can overcome them.
Four Fears Entrepreneurs Experience & How to Overcome Them
Starting a business is a big commitment, which is why many entrepreneurs experience a lot of fear and uncertainty before and even after launching their venture. Fortunately, these worries can be addressed.
Fear of Failure
Fear of failure is the leading concern for most business owners. Statistics have shown that around 20% of new businesses fail within their first two years. This number causes aspiring entrepreneurs to have this innate belief that they will fail, too.
But truthfully, failure will always be part of the process. You’re bound to fail, especially if you’re a beginner. What you need to remember is that failure is not a bad thing.
Your failures do not define you and your potential. It doesn’t matter how many mistakes you make; what matters is that you learn from them.
Knowing how to bounce back from failure is a skill every great entrepreneur has. It’s a trait that allows them to survive the ever-changing market. So don’t be afraid to fail.
Think of every mistake you make as a lesson that will help you become a better business owner in the future.
Fear of Uncertainty
Uncertainty is another common emotion you could feel when you start running your own business. It’s very much connected to a fear of failure.
As a business owner, you’ll do as much research as possible to weigh the risks and rewards of every decision you make. However, having too much information on one matter could lead to what’s commonly known as analysis paralysis.
This phenomenon happens when a person starts to gather so much information that it stops them from making a decision.
For example, suppose you’re doing research for a new product you want to launch, and you find that the probability of failure and success are too close to one another. Knowing this information could cause you to overthink and prevent you from making up your mind.
If you think you have analysis paralysis, here’s how you can overcome it:
Recognize It: The first thing you must do is recognize that you have analysis paralysis.
Determine The Cause: Find out what’s causing your analysis paralysis. Psychology Today says that most of the time, analysis paralysis is caused by compulsively weighing your options and expecting the worst possible outcome simultaneously. So, if you’re afraid of uncertainty and keep focusing on the negative outcomes, you’ll have a harder time deciding.
Take A Step Back: Once you realize you’re overthinking things, take a step back and give yourself a break. Distancing yourself from the matter will help you gain a fresh, more relaxed perspective.
Get Help: If taking a step back didn’t do much for you, you can ask for help from people you trust. This way, you don’t have to carry the burden of decision-making alone.
Set A Deadline: Give yourself a deadline so you don’t procrastinate on your decision.
Since there’s no way of telling whether you’ll succeed, you must embrace uncertainty and reassure yourself you can bounce back from whatever setback you face.
Fear of Not Having Enough Capital
A lot of business owners will delay starting their business on the excuse that they don’t have enough capital to work with. When in reality, thousands of businesses start from nothing.
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Aside from this, you always have the option to raise capital with the help of banks. You can apply for several business loans that best fit your company’s needs and goals.
You also have the option to look for angel investors or venture capitalists. Both angel investors and venture capitalists provide capital to businesses in exchange for equity ownership. What makes them different from one another is that VCs also help small businesses get access to equity markets.
Remember, funding cannot guarantee your success. Even if you have fewer resources to work with, there’s still a chance that your business will thrive. Just look at Apple, who initially started with a small team in a garage.
Fear of Changing Laws
Staying on top of the changing laws and regulations is another key role of being a business owner. However, complying with federal and state laws can be challenging, especially if they constantly change.
There have been stories of successful ventures that had to close down because they weren’t following the law. But these mistakes can easily be avoided by making sure that your business is established the right way.
Ensure you obtain all the licenses and permits your state requires before starting your operations. Aside from this, it’s also important that you understand how your tax status works.
Every business entity has its own tax status. For example, sole proprietorships, partnerships, and LLCs have a pass-through tax status, meaning their owners must report their earnings on their individual tax filings.
Lastly, staying informed about any changes in your state’s legislation is important. It’s the only way you’ll overcome your fear of the law.
You can use several resources to stay updated about federal and state law revisions. You can subscribe to the government’s newsletters, join industry associations, and consult lawyers.
This way, you’ll be the first to know if any new regulation could affect your business.
Take The Leap And Start Your Business Today
Ultimately, starting a business can be very scary. But you can turn your dreams into reality by learning how to recognize and overcome your fears.
If you need help kickstarting your venture, look no further than NCH.
NCH is one of Nevada’s leading business formation specialists. Our team of experts will help you overcome your fears of starting a business. From developing a comprehensive business plan to choosing the right business entity, we’ll assist you.
To learn more about our business formation services, you can visit our website here or call us at 1-800-508-1729.
Disclaimer: The above material has been prepared for informational purposes only, containing opinions of the provider and is not intended to provide, and should not be relied on for, tax, legal or accounting advice. Please consider consulting tax, legal, and accounting advisors before engaging in any transaction.