In a recent study from IONOS looking into entrepreneurship, it was discovered that almost 80% of Americans want to start their own businesses.
So why are just 12% of Americans doing so? What is holding people back from their American dream of entrepreneurship?
For most participants in the study, a lack of financial reserves and a fear of bankruptcy were the main obstacles. Eager to help, we reached out to successful career coach, Caroline Castrillon, to learn more about overcoming your fears to make your entrepreneurial dreams come true.
Here’s what Caroline had to say about managing financial fear…
Fear stands for “false evidence appearing real.” Fear never goes away. The key is to manage it so that it doesn’t interfere with your ability to reach your goals.
One of the best ways to manage financial fear is to put everything down on paper and ask yourself some key questions:
What are your current expenses and savings?
How much runway do you need to get the business started?
Eighty-two percent of the time, poor cash flow management contributes to business failure. So, before you make the transition, sit down with your accountant or advisor to review your financial situation.
Having a healthy cash reserve will help you through the inevitable peaks and valleys of entrepreneurship. The amount of money you set aside will depend on your industry, expenses, and when you expect to begin generating income.
Most people feel fear because they imagine having to take a giant, sudden leap into entrepreneurship. But you can do it in stages.
Start small but think big. Starting a side business can be a prudent strategy because you can work on getting the operation up and running while still in your full-time job.
To read more about the fears new entrepreneurs have in business and the support they feel would encourage their new ventures, download the free ebook.