Hi there,
When I started my first business,
I put far too much emphasis on trying to protect it from failing, which ironically made failure more likely.
And I see new
entrepreneurs make this mistake a LOT.
Typically, focusing on protection
involves one of three false fears:1. Fear of too many customers- Perceived Problem: Once an entrepreneur puts their product into the world, they won’t be able to keep up with demand
- Solution: They ensure that their products and processes can scale before launching their business
2. Fear of someone stealing their product- Perceived Problem: Once their product/idea is out in the world, people will see that it’s a golden opportunity and will try to copy or steal it
- Solution: They keep their product/recipe/idea a secret for as long as possible, and try to copyright/trademark it
3. Fear of someone suing them- Perceived Problem: Once they have a business, people will try to use it to go after their business/personal assets
- Solution: They setup an LLC/corporation, get liability insurance, and meticulously craft their Terms of Service and Privacy Policy documents
I must admit, when I started my first business,
I focused on mitigating ALL three of these fears before I even made a single sale! Looking back, it’s no surprise that
the business failed miserably.
At its core, new
entrepreneurs are often worried that people will care too much about their new business. But the reality is actually the opposite!
By far,
the biggest risk for any business is that people will not care enough about it.
Therefore, it’s critical to
stop worrying about protecting a new future business from failure, and focus on making gradual progress instead.
Let’s flip those fears around to see the real issues entrepreneurs face, and the solutions for them:
1. Not enough customers- Actual Problem: People resist buying the product
- Solution: Focus on getting to the first sale as quickly as possible, in order to get early customer feedback and learn what customers really want
2. Not enough interest in the product- Actual Problem: People do not care about the product as much as the entrepreneur does
- Solution: Tell as many people as possible about the product/idea, even before it exists, which helps create anticipation for it
3. Not enough interest in the entrepreneur- Actual Problem: People do not care about the entrepreneur and see them as yet another person trying to sell them something
- Solution: Tell your story, distinguish yourself, and don’t be afraid to put yourself out there!
Of course, all of the above is easier said than done. But I do hope it helps you understand the actual risks to a new business idea, so you can focus on making progress with it, and reduce its chances of failure.
Always remember: focus on progression, not protection!Forraging ahead,
David