Small businesses are the backbone of the U.S. According to the Small Business Association (SBA), in 2022, 99.99% of all businesses are considered small — with 89% of those having fewer than 20 employees. We NEED small business; but starting one is not for the faint of heart. Here are four of the eight obstacles covered in Part One of this report. While you may feel empowered to start a business or work for yourself, it can be daunting. You may face a myriad of fears and uncertainties. Unfortunately, there’s no magical time that they go away. It’s not like once you pass the five-year mark, you become fearless. No, you must work at that and leverage your resources.
So, let’s explore the most common fears for business owners and the strategies for addressing them. One solution that can significantly ease these concerns is working with your chamber of commerce.
1. Fear of Financial Insecurity
Small business professionals often grapple with the fear of financial instability. The uncertainties of cash flow, profit margins, and economic downturns can be paralyzing.
To address this fear:
• Create a robust business plan that outlines your financial strategy and projections.
• Build an emergency fund to cushion your business against unforeseen challenges.
• Consult with financial experts or accountants for prudent financial management.
• Join your local chamber for access to financial/ business/support resources, grants, and networking opportunities. While you can find this information on your own, it’s nice (and much more efficient) when someone else is calling it to your attention.
2. Fear of Failure
Fear of failure is a common psychological hurdle for small business professionals. It can manifest in self doubt and reluctance to take risks.
To overcome this fear:
• Embrace a growth mindset; view failures as opportunities to learn and grow.
• Set achievable goals and celebrate your successes, no matter how small they may seem.
• Connect with mentors, business coaches, or industry peers who can offer guidance and support.
• Organizations like a chamber can provide you with access to mentorship programs, business seminars, and other business pros that help build your resilience and confidence in your business venture.
3. Fear of Inadequate Marketing
Marketing can be one of the most hated activities for small business professionals. It can feel awkward trying to toot your own horn in a way that people will come to know, like, and trust you. But effective marketing is vital for business growth and fear of not getting it right can hinder progress.
To combat this fear:
• Develop a thorough marketing strategy, emphasizing your unique value proposition. There is a lot of free advice on the internet about how to do this.
• Explore various marketing channels to find what works best for your business and what’s most appealing to your target market.
• Invest in marketing education and resources to enhance your skills.
• Join networking groups so you can connect with marketing experts and opportunities to promote your business to a wider audience through events and networking platforms.
4. Fear of the Unknown
When you start a business, there are many things you might not know. Even after being in business for years, there are things that come up that you hadn’t considered. (Hello, COVID!) You may also be concerned about legal and regulatory unknowns. There’s great unpredictability in the business world. Fearing those things can paralyze you, preventing you from making necessary decisions, embracing innovation, and seizing new opportunities.
To address this fear:
• Consult with professionals who know what you don’t, to ensure your business complies with all regulations.
• Stay informed about changes in local, state, and federal laws that affect your industry.
• Access the chamber to learn about local laws and legislative changes that may impact your business.
• Talk with business pros who have been in your position — learn what they wished they’d known when starting their business.
And there’s more! Look for Part Two in the November issue of The Digest.
