According to IONOS’ recent research on entrepreneurship, almost 80% of Americans want to start their own businesses. So, why are just 12% of Americans succeeding? What is preventing the participants of the study from achieving their American dream of entrepreneurship?
For most individuals in the study, a lack of financial reserves and a dread of bankruptcy were the main roadblocks.
Wanting to learn more about overcoming your fears to fulfill your business ambitions, we contacted professional career coach Caroline Castrillon:
“I think of fear as an acronym for ‘false evidence appearing real’. There is no cure for fear. They key is to control it so that it doesn’t impede your ability to achieve your objectives. One of the most effective methods of coping with financial anxiety is to write everything down and ask yourself a few fundamental questions:
What are your expenses and outgoings?
What are your savings? How much time do you need to get the business running?
Poor cash flow management is responsible for business failure about 82% of the time. Sit down with your accountant and assess your financial state before you make the switch to self-employment.
A healthy cash reserve will help you get through the inevitable ups and downs of entrepreneurship. The amount of money you set aside will be determined by your industry, costs, and when you anticipate to start earning an income from your business.
Financial fear is typically associated with the idea of leaping into entrepreneurship. But you can take small steps and work up to it gradually. Start modest but aim big. Starting a side business can be a good idea as it allows you to work on getting your business up and running while still working full-time as a safety net”.
To learn more about the worries new entrepreneurs have when starting a business and the support they want to help them succeed, download the free ‘New Insight into Entrepreneurship’ ebook.