Don't Let Financial Fears Stop You From Pursuing This Dream


There are many obstacles to starting a business. Timing will always play a role. In fact, timing may be the deciding factor. Sadly, some of the other challenges to getting started often stop entrepreneurs in their tracks. The fear of failure, a lack of inspiration and focus, or simply losing that drive and determination, causes many to give up before they get going. Then there is the money. We all know that making it on our own requires a lot of tenacity and a lot of hard work. But if you don’t have the money to set up then you’re going nowhere.


Financial security is difficult to find these days. You might be worrying about having an income when you’re just starting out. After all, you’ve got bills to pay and mouths to feed. Even if you have a full-time job with a good employer, nothing is certain. What is your contingency plan should your boss’ firm go belly-up? Don't you have one? Why not? The secret to success is to have a back-up plan. This may involve a lot of sacrifices, but survival is key, and you’ve got to do what you can to make it.

Fears of financial insecurity need to be addressed so you can start to move forward. Start by assessing your lifestyle. Are you spending more than you need to? Have a look through your shopping receipts for the last month or so. Highlight anything that wasn’t essential to your survival. This might include fashion items, coffee house brews, fine dining, or trips to the movies. Tally them up. This is how much you could save if you cut them out. Now take a look at the cost of the things you bought that you deemed necessary. Check out websites like DontPayFull.com to see if you could have (and should have) paid less for them.

What about your household bills like electricity, phone, and TV? Head to a comparison website and see if switching supplier will save you even more cash. Check your current contract terms before agreeing to a new one, though. If you have loans and credit outstanding, these need to be addressed. What’s your repayment plan? Can you pay them off early, so they’re not hanging over you when you start your business? When you’ve got your finances straightened out, you can start to see what your bare minimum income needs to be to survive.

Chances are your survival figure is much lower than you expected. You might now be able to see a way clear for starting your business. You might even be ready to start the transition from your day job to become self-employed. Of course, you might need some extra cash in the bank for those first few weeks, or if things are seasonally quiet. So how can you be sure you’re ready to say goodbye to your boss? There are three approaches you can try:

APPROACH NUMBER 1

Check that survival figure again. Now set yourself a reasonable target. If three months seems fair and realistic, then multiply your survival figure by three. When you have this amount of money sitting in your savings account, why not go for it? You’ll have three months to build up your client base or sales to meet that same survival figure. Of course, those three months are going to be tough. There is no room for error, and you may need to factor in an emergency or two. You might call it jumping in at the deep end, sink or swim, or the ‘go-for-it’ approach. It will certainly motivate you to work your backside off to achieve those early sales.

APPROACH NUMBER 2

You might decide it’s too risky to jump all-in right now. As I said, timing is crucial. Instead, you can work every waking hour (and some of the hours you’re supposed to be sleeping) to juggle a day job and your business. Use up your paid leave allowance to get thing moving along. You may have to beg and borrow the odd flexible working hour or extended lunch to meet all your appointments. This way is exhausting, and you may risk upsetting things in your workplace if you’re tired or unfocused.

APPROACH NUMBER 3


You wait. You wait, and you wait, until the timing is right and the money is in place, and then you go for it. The trouble is, this may never happen, and you might miss out. Don’t let financial fears stop you from pursuing your dreams. Instead, take the time to fine-tune your budget, plan your financial strategy, and don't give up your dreams.

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