A Little Fear of Failure is Good For Entrepreneurs
Surveys across nations have revealed that fear of failure is the number one reason why you may not venture into a new business. Many successful entrepreneurs have failed several times before becoming successful but people forget their failures except the few who have experienced it. The fear of failure may also impact innovation, introduction of new products or expansion into new markets.
So mentors and coaches urge you to get rid of your fear and take the initiative. However, wisdom says a little fear is a good thing.
Investment, business, and entrepreneurship are all inherently risky but carry huge rewards. You might have read stories of entrepreneurs whose wealth eroded in no time due to the recession, a bad decision or due to blind belief in someone or some organization. Not all of you are capable of withstanding failures and bouncing back in no time. Therefore, it is good to exercise caution even when venturing into something new.
Here are six reasons why a little fear of failure is good for business
1. It Can Help in Doing Your Homework Better
Every product, service or business comes from an idea. Some do market research and pore over data, population, consumer spending habits, competitors and their products. Sometimes, enthusiasm and obsession with a new idea can make you take uncovered risks, lose all your money and investor’s money.
2. Fear May Help Us to Improve Our Skills and Resources
If you think your skills and knowledge about the industry are inadequate, you may try to learn more yourself or get the best people to do the job even if it means taking lesser cash home. It can happen in new emerging areas such as information technology (IT) or mobile apps. Your fear about your knowledge and skills helps you hire the best talents.
3. It Will Help Us to Take Precautions
Sometimes, an inner fear may help you take additional risk cover, an insurance, a backup plan, cut initial costs and scale up the business based on initial trends. In clothing business, you may decide to focus on low value, high volume brands, and risk lesser inventory to begin with.
4. You Become Less Complacent
Fear of failure can help you overcome idleness and inertia. It will keep you alert to new opportunities, new trends, and happenings in the industry. It also helps you to keep tab of what the competitors are doing and how to overcome their challenges.
5. Fear Can Boost Creativity
The knowledge that you don’t have unlimited resources or chances to take, can help spur the creativity in you and make you more innovative in your products, techniques and solutions. If you are making a digital inverter, a bit of innovation can lower costs, improve its features and gain acceptability in the market.
6. You Might Seek Help From Others
Fear or doubts about your plans and ideas can make you consult more people related to the field to get ideas or try out a different branding strategy through social media, billboards or hoardings. It may also help you to seek more clients and get their feedback.
You might have to search for numerous articles and books on overcoming the fear of failure and taking calculated risks. However, taking risks without adequate precautions or safety net can be too speculative. Business or investment should not be seen as a speculative activity but something that requires careful study, research and surveys of consumer demands and market trends. It is true that successful businessmen have faced failures but a little fear can help you eliminate the risks and disappointments later.
