So What If I Fail? - Career Article

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Monday, 6 October 2008

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So What If I Fail?

By:Jonathan R Taylor

When surveyed, over 70% of workers like the idea of “being their own boss” more than working for someone else. So, if this is the case, why do only a small percentage venture out and join the ranks of the self employed? The biggest reason is fear of failure. We’ve all heard the statistics of how most businesses fail within their first year. It’s reported over and over in the media, so it’s no wonder we buy into it.

With all that negative news, it really sounds like the deck is stacked against us right from the start. But are these reports really accurate?

The answer is no. The truth is that this statistic actually came about some years ago as a result of a mistake during a speech given by the then-director of the Small Business Administration. The text of his speech stated, “Most small businesses that fail, fail in the first year.” Instead, he incorrectly read it and said, “Most small businesses fail in the first year.”

A Dunn & Bradstreet census of 250,000 businesses showed that almost 70% were still around 12 years after their startup. Not only that, but the Census Bureau has found that 57 percent of small businesses that go “out of business”, are actually successful at the time of their closing. This shows us that there were other reasons than business failure that business owners decided to close the doors.

The truth is yes, some businesses do fail, but let’s stop believing this age old urban myth that most of them sink. Are there risks in starting a business? Some, but most entrepreneurs aren’t the daring “bet the farm” risk takers they are made out to be. Most successful business owners know the difference between smart risks and dumb risks.

In a past article in Entrepreneur magazine, Geoff Williams suggests the following five steps for taking smart risks in starting a business.

Determine the worst-case consequences of taking the risk. If you aren’t able to live with the consequences then it’s not a good idea to move forward, until you rethink your plan.
Research the risk you’re going to take before you make the leap. Smart entrepreneurs do their research, before they jump in.
Seek Advice - Talk with people who are in the same business, seek counsel from friends and relatives and consider hiring a consultant.
Ask yourself, “Will I lie awake at night for the next several years, wishing I had taken the risk?”
And finally ask your self this question: “Is not taking the risk a bigger risk than taking it?” If the answer is yes then what in the world are you waiting for?
Remember, “Success is when preparation meets opportunity.”

Click here to access the business planning worksheet found in the “48 Days to Creative Income” workbook. Or, for more great advice, purchase the entire workbook here.

To access the links in this article, visit www.careercalling.com/Archives.htm and read edition June 17, 2005.

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Find out why Dave Ramsey recommends the programt that we teach. Visit www.careercalling.com!

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