When business writers discuss why so few people become entrepreneurs, they cite “fear of failure” as the No. 1 challenge.
I agree. Fear of failing is a real factor. But to overcome it, you need to figure out what it means in more specific terms.
When I feel trepidation about starting a venture, I’m not worried about something as abstract as failure.
I worry mainly about three things…
One, I sometimes worry I don’t have the knowledge or skill to make the idea successful. Two, I worry I might lose all the time and money I’m about to invest in the idea. And three, I worry if word gets out that I’ve had to close, business people will think I’m a fool – especially those people who doubted my idea in the first place.
Best-selling author Seth Godin talks about that first fear. He says, quite correctly, that most people who buy books on entrepreneurship never get beyond the dreaming stage because “deep down inside they don’t think they have what it takes to succeed.”
I don’t know whether that is the most common fear of starting a business. I wish it were. But I’m afraid too many entrepreneurs have the opposite problem…
They don’t realize they don’t have what they need to succeed.
If you have that fear, you should respect it, because 9 chances out of 10, it is valid.
My No. 1 rule of wealth building is to invest only in what you know. If you think you might not know enough or have the right resources, then you probably don’t.
The solution to that fear is to put your plan on hold and acquire the experience to know what you need to know.
If your fear is being shamed by a failure, you can and should move forward. You can overcome this kind of fear by doing what I’ve talked about before: Imagine the worst possible outcome and visualize being emotionally okay with that.
Another thing you can do is be a bit humble when you are announcing your venture.
Rather than brag about all the money you will be making, keep the claims small and try a little self-deprecating humor: “This is probably a terrible idea, but I’m going to try it.”
If your fear is losing your time and money, then you need to follow the protocol I outline in The Reluctant Entrepreneur: Turning Dreams into Profits.*
Fear is a good and useful emotion. Successful entrepreneurs don’t deny it. They overcome it sensibly and cautiously by taking baby steps and proving the optimal selling strategy before going big.
If you feel you have what it takes, then don’t let either the fear of embarrassment or the fear of losing time and money get in your way. Keep your risk low and your dreams high.
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