Roadblock Busters

By Jacquelyn Lynn

How often have you said it? “I’d like to start my own business, but ...” and then listed one of a myriad of reasons why you just can’t take that leap. There is no getting around the fact that the path to successful entrepreneurship is exciting, challenging—and littered with roadblocks. So we went looking for roadblock busters—solutions to the obstacles that are keeping you from realizing your dream of starting your own business.

Roadblock: Fear of Failure
Small businesses fail at an alarming rate; what makes you think yours will be different? If you’ve done your planning, you’ll be able to answer that question quickly and with certainty.

A thorough, well-thought-out business plan will go a long way toward building your confidence. When you consider each element of your operation and how they will function alone and together, you’ll be starting on a more solid foundation. As part of this process, take advantage of the variety of resources available to start-ups, such as the various Small Business Administration programs, entrepreneurship programs offered through colleges and universities, and local and state economic development opportunities.

Never confuse confidence with blind optimism. Come up with worst-case scenarios and figure out how you’ll deal with them while you’re still in the planning stages.

Beyond your own internal fears, you may also be dealing with negative attitudes from friends and family. Consider what might be motivating them. Do you have a boss who doesn’t want to lose you? Friends who don’t have the courage to do what you’re doing? Relatives who have tried and failed? Consider who is saying what to you. If the person is successful in business, listen. But if they live from paycheck to paycheck just doing a job, put their opinion in context.

Roadblock: Loss of Financial Security
Speaking of paychecks, yours may not be as much as you’d like, but at least it comes in steadily. Of course, that’s just one way of looking at it. Consider this: when you’re working for someone else, there’s always a chance that you can lose your job, and your income; being self-employed may mean your income fluctuates, but it also means you can’t get fired. Another point to consider is that as an employee, you’ll likely always have a cap on your earnings; as a business owner, there’s no limit to what you can earn or how big you can grow.

If it’s going to take some time for your new venture to start generating revenue, you may be able to start your business on the side while keeping your job. Consider scaling down your lifestyle as much as possible well in advance of your start-up date. Economizing for at least several months before you open your doors accomplishes two important things: first, you get accustomed to living on less before you actually have to; and second, you’ll be saving money you can then use for your business.

Roadblock: Replacing Benefits
Insurance, a retirement plan, paid holidays and paid vacations are the primary benefits you’re probably getting now that you’ll have to provide for yourself once you’re on your own. And there may be other benefits, depending on how creative and generous your employer is, that you’ll have to either replace or do without when you resign.

Begin by analyzing what benefits you actually need, and what benefits are a pleasant bonus. In most cases, you’ll be primarily concerned with health, life and disability insurance. Buying such coverage yourself may seem expensive, but it’s worth it when you weigh the cost against the risk. And if you’re making more in business for yourself than you were as an employee, you’ll be able to afford to pay more for insurance.

This is a condensation of an article that originally appeared in Entrepreneur magazine. Reprinted with permission of the author.