Starting a new business can be a turbulent undertaking. For one thing, there are no guarantees of success. Businesses fail every single day, and plenty of entrepreneurs come away with nothing to show for months or years of hard-fought effort. The idea of sacrificing a steady salary for an uncertain, hoped-for payday also tends to provoke anxiety.
While some are undeterred by these obstacles, others opt to play it safe and scrap their business plans altogether. Below are six of the most prevailing reasons why people are afraid to start businesses (and whether they make sense.) 1. The Economy
Some of the most common fears about starting businesses relate to how “the economy” is doing. If the economy is in a lull, many would be entrepreneurs assume that now must necessarily be the wrong time to get started. This belief is reinforced by nay-saying politicians and journalists who exaggerate even the very worst economic news.
Remember, though, that there is no single entity called “the economy.” What is loosely referred to as the economy is really just the vast, interconnected web of buyers and sellers accommodating each other through the market and price system. Moreover, there are two sides to every transaction. While some sectors of the economy may be hurting (such as finance and housing today), those on the other side of the affected transaction (like foreclosure specialists and storage facilities) could be thriving. 2. Uncertainty
Another fear that stops entrepreneurs from getting started is the uncertainty inherent in owning a business. Unlike a salaried job, business ownership provides no immediate or guaranteed pay. Income, if any, is commensurate with the company’s sales or profits. If you have grown accustomed to being paid on a regular schedule regardless of outcome, trading that in for the uncertainty of business ownership can feel like a leap of faith. It is entirely legitimate to wonder if your business will be capable of providing for you or your family. 3. Indecision
4. DebtRead more: The best article every day
While some are undeterred by these obstacles, others opt to play it safe and scrap their business plans altogether. Below are six of the most prevailing reasons why people are afraid to start businesses (and whether they make sense.) 1. The Economy
Some of the most common fears about starting businesses relate to how “the economy” is doing. If the economy is in a lull, many would be entrepreneurs assume that now must necessarily be the wrong time to get started. This belief is reinforced by nay-saying politicians and journalists who exaggerate even the very worst economic news.
Remember, though, that there is no single entity called “the economy.” What is loosely referred to as the economy is really just the vast, interconnected web of buyers and sellers accommodating each other through the market and price system. Moreover, there are two sides to every transaction. While some sectors of the economy may be hurting (such as finance and housing today), those on the other side of the affected transaction (like foreclosure specialists and storage facilities) could be thriving. 2. Uncertainty
Another fear that stops entrepreneurs from getting started is the uncertainty inherent in owning a business. Unlike a salaried job, business ownership provides no immediate or guaranteed pay. Income, if any, is commensurate with the company’s sales or profits. If you have grown accustomed to being paid on a regular schedule regardless of outcome, trading that in for the uncertainty of business ownership can feel like a leap of faith. It is entirely legitimate to wonder if your business will be capable of providing for you or your family. 3. Indecision
4. DebtRead more: The best article every day
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