How to overcome the fear of starting your own business

Is fear holding you back from realising your dream of starting your own business? Whether you lack support from loved ones, have financial anxiety, or are unsure if your business idea has legs, taking the plunge is a common concern. It can be challenging to overcome, but also incredibly exciting and liberating once you do.  

The good news is that you’re not alone. In this article, we share our top tips on tackling your fears and finding the confidence to start your own business. 

1. Identify your fears

The first step is to identify the type of fear preventing you from taking the leap. 

A common one is the fear of failure. Considering that the Office for National Statistics reports that 20% of businesses fail in their first year and around 60% in their first three years, it’s certainly a justified concern to have. Other worries could be:

• Judgement from others
• The stress of responsibility 
• Lack of knowledge
• Financial insecurity
• Your business idea isn’t viable

Starting a business is risky, but you’ll never know until you try. So, start by understanding your concerns. This will allow you to address and overcome them.

2. Examine and challenge your fears

Next, examine and challenge your fears. We suggest physically writing them down, to help you organise and keep track of your thoughts and ideas. 

Ask yourself: “Is my fear based on fact or speculation?” Perhaps you’re an over-thinker and a worrier, something that can intensify your concerns and make them look scarier than they really are. Then consider: “What can I do to negate that?”

If you’re anxious about a lack of funds to support your new business, remember that plenty of household names were born in a garage with very little money in the bank.  

Luckily, there are numerous solutions. For instance, you can take out a business loan, ask friends and family for help, attract investors, or apply for a grant. 

Or, if you’re nervous about how starting a business might impact your work/life balance, try creating a list of personal and professional priorities and visualise what your life as a business owner might look like. Are you happy with that image? What can you do to improve it?

This step is about genuinely understanding the fears that you’re facing, addressing them head-on, and finding practical solutions to them.

3. Develop a positive mindset

A negative or defeatist mindset won’t get you very far as an entrepreneur. If negative introspection is causing you to fear starting your own business, you need to replace it with an optimistic, confident perspective. 

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Otherwise, if you think negatively about your business and constantly believe that things won’t work out, they probably won’t. In psychological terms, it’s a self-fulfilling prophecy whereby cynical or false expectations will eventually become reality. 

If you fear starting a business because you’re too preoccupied with presuming your idea will fail, turn that negativity into positive affirmations and self-belief. Running a successful business is all about confidence, optimism, motivation, and encouragement.

4. Set yourself clear and specific goals

In relation to the fears you’ve defined in step one, think about what you’d personally like to achieve as an aspiring entrepreneur and physically map out your goals. They can be as big or small as you like, as long as they promote progress.

For example, one of your first goals might be improving your self-care routine to build confidence. Another could be opening up to a friend or family member about your business idea. 

Or you might want to set a bigger objective, like attending a networking event. Mingling with existing entrepreneurs will show you what running a business is like, which could be a powerful way of eradicating the fear holding you back. And while you’re there, you could make some valuable connections for when you launch your business. 

Remember to keep your targets realistic and achievable, as aiming too high too soon could halt your progress and cause fear to creep back in. If you need a hand, you might find the SMART technique useful: 

Specific: What outcome do you hope to achieve?

Measurable: How will you track your progress?

Achievable: Is your goal attainable? 

Relevant: Does your goal align with your overall objective?

Time: What is your target deadline for achieving this goal? 

5. Strengthen your knowledge and skills

Improving your knowledge and skills is crucial for overcoming the fear of starting your own business. Not only is it instrumental to boosting your self-confidence, but it also ensures you’re well-equipped to build a successful business. 

Consider whether there are any gaps in your abilities. Maybe you need to brush up on the latest marketing techniques – an online course can help with this. Or maybe you need to enhance your leadership skills – try working with a professional mentor or reading some books on the subject. 

Once you’ve made these improvements, remember that education should be continuous. As an entrepreneur, you’ll need to keep up with evolving trends, markets, and strategies, so it’s essential to prioritise building your professional acumen on an ongoing basis to keep fear at bay.

6. Create a circle of trust

If you’re feeling isolated and overwhelmed by becoming your own boss, remember that you don’t have to (or, rather, shouldn’t) carry this weight alone. In fact, every entrepreneur needs a circle of trust to confide in and overcome any fears or challenges they might be facing.

This group should consist of people you trust wholly and offer a balance of personal and professional assistance. It could include your spouse or partner for emotional support, a financial advisor to help manage your company’s funds, and a fellow business owner (or maybe a business partner) to exchange professional advice. 

Your support network should also consist of positive individuals who encourage you to aim high and achieve your goals. The aim here is to build your perfect environment for success and motivation, so a glass-half-full kind of person might not be best suited for this. 

7. Embrace failure

If failure is your main fear about starting a business, we urge you to embrace it. We’ll be honest and say that some form of failure is inevitable when running a business. 

Maybe you’ll launch a product that won’t be the hit you thought it’d be, or an investor pitch won’t quite go to plan. Working on your mental preparedness to embrace these challenges and build your resilience is the key. 

As the great three-time Formula 1 world champion, Niki Lauda, once said: “From success, you learn absolutely nothing. From failure and setbacks, conclusions can be drawn. That goes for your private life as well as your career.” 

Yes, it’s initially discouraging when we fail, but if we were to always succeed and achieve our goals quickly, we’d never grow as individuals. So, try to embrace failures when they present themselves and view them as learning opportunities. This vital mindset shift will help you overcome your fear of starting a business.

8. Find a role model

Last but not least, we recommend having a role model to look up to. Perhaps you know someone in your personal life who has started their own business, or you want to dream big like Steve Jobs or Arianna Huffington. 

Having a physical source of inspiration is a great way to overcome your fears of starting a business. It’s a simple but powerful technique for keeping your eyes on the prize, reminding you of your aspirations, and motivating you to work towards them.

Conclusion

It’s normal to have fears and reservations about starting your own business. However, if you have a business idea you truly believe in, use our top tips in this blog to overcome them and feel empowered to take the plunge. 

We hope you found this blog helpful and inspirational. If you have any comments or questions, please post them below.