Small businesses are the backbone of a modern, thriving society. They act to broaden communities, create new jobs, decentralize corporate economic power, and give people the opportunity to control their own futures.
Another key aspect of small companies and entrepreneurs is that they innovate and inspire. A true entrepreneur is one who seeks change and responds to challenges with creativity and insight. However, even the bravest future business owner may have anxiety about starting a new venture.
In fact, overcoming these fears can be one of the toughest challenges entrepreneurs face. There are many ways to overcome this fear and find the path to success.
How To Tackle Fear-Related Entrepreneur Challenges
Fear is a critical psychological barrier for most entrepreneurs and can prevent you from taking the risks required to achieve success. Here are a few effective strategies to tackle that fear head-on:
1. Identify the Source of Fear
First, understanding the root cause of your fear is essential for addressing it effectively. A good place to start is to reflect on what specifically is triggering your fear.
Is it fear of failure, fear of financial instability, fear of criticism, or something else entirely? Once you pinpoint the source of your fear, you can develop targeted strategies to overcome it. This can include creating an actionable business plan, achievable goals, and finding support from friends, family, and fellow business owners.
2. The Fear of Failure
The fear that your business will be one of the ones that won’t “make it” is possibly the biggest fear that many entrepreneurs face. This is not an unreasonable fear: the fact is that not all business startups succeed. However, that does not mean yours will fail.
Even if you experience setbacks or unexpected bumps in your business journey, each of these can provide valuable lessons that can help you improve and iterate your business strategies.
Businesses that fail are often those that have unclear plans, lack capital, and lack leadership. If you properly prepare yourself for when your business opens its doors, you may give yourself less to worry about and can focus on growing your business instead.
3. Always Have a Plan
Believe it or not, 27% of entrepreneurs don’t have a fully developed business plan. And statistics show that trying to start and grow a business without a plan is a near guarantee that it won’t survive past the first few years. This is why a business plan is essential for starting a business the right way.
A well-written business plan enables you to identify potential challenges, communicate how the business will operate, and make decisions based on gathered data. A solid business plan should outline your goals, strategies, and potential obstacles, and develop contingency plans to address unforeseen challenges. It will act as your roadmap to success.
4. Research Your Financing Options
Along with a solid business plan, you also need to know how you will fund your business. Simply put, there are four financing options: self-funding, crowdfunding, business loan, or investment capital. Before you decide the best way to fund your business, it’s important to research your funding options.
A great place to start is with banks and the Small Business Association (SBA). Some businesses may qualify for a loan with generous terms or even a grant. It’s also a good idea to investigate finding an investor or other private funding options. Either way, do your homework to see what might work best for you.
Another big decision to make is what type of business and industry is right for you. The choices are varied and plentiful, which can make choosing one feel challenging. While startups can give your business independence, a franchise may offer stability in the form of training, established processes, and support.
By doing your research, you can mitigate some of your fears through the knowledge of what to expect from business ownership. For example, there are lower-cost franchises that could give you the opportunity to be a business owner even if you don’t have the resources to start your business from scratch.
With an established franchise company, it may be easier to get financing for your business both as you begin your venture and if you choose to expand your operations later on.
5. Seek Mentorship
Finally, a great way to overcome fear as an entrepreneur is to find a knowledgeable mentor. A mentor can offer valuable insights, guidance, and support based on their own experiences in entrepreneurship. This additional perspective can help you brainstorm solutions and overcome obstacles while offering encouragement during challenging times.
For the best results, look for someone who has successfully navigated similar challenges or possesses expertise in your industry. Building a strong mentor-mentee relationship can significantly boost your confidence and resilience as an entrepreneur and greatly increase your chances of success.
Don’t Face Your Entrepreneurial Fears Alone
Perhaps the most important thing to understand about overcoming fear venturing out into business on your own is... that you don’t have to go it alone! Franchising offers a way to own and run your own business, but without all of the trial and error of a start-up situation. Investing in a franchise gives you the power to face the challenges of entrepreneurship with help.
Neighborly® is the world’s largest home services company, and by choosing one of their 19 North American home services franchises, you’re joining a neighborhood of other franchise owners who have been in your shoes and can offer advice. You can also take advantage of brand recognition, marketing support, training and coaching, and established business plans that help you launch and grow your business.
To learn more about franchising opportunities near you, download the Neighborly franchise guide.
