Fears of Starting a New Business
Way back in the last century (1991, actually) a survey was
conducted by my research firm, MarketWave, Inc., of over 6,000
people who were not, nor had ever been, business owners. The
question was a simple one: If all obstacles were removed, would
you like to own your own business? In other words, if what ever
was stopping you from starting a business didn't exist, would
you at least attempt it? Basically, would you prefer to be an
entrepreneur, or an employee? Eighty five percent said Yes,
they'd prefer to work for themselves. Which means 15%
misunderstood the question on the survey. After all, if what
ever concerned you enough to not attempt a business venture
didn't exist, then you'd have no fear of doing so. I mean, who
wouldn't want to be in control of their own life? To have the
freedom to make their own decisions, work their own hours, and
write their own pay check?
Even using the conservative 85% figure, that would mean about
200 million Americans want to start their own business, but have
never even attempted it! There must be some pretty compelling
reasons, we thought, so we set out to find out what they were.
To no one's surprise, it was never about preferring to work for
someone else's business, but rather the incapacitating fear of
starting their own. And it was the same four fears, every single
time.
It takes too much money. They didn't have tens-of-thousands, or
hundreds-of-thousands of dollars to invest in a business (and
they didn't know anyone else who did).
It takes too much time. They didn't want to work 80 hours a
weeks for the first year or two to get their business going.
There's too much risk. Over 56% of all businesses fail in the
first two years, and they'd have to quit their job, so there was
no safety net.
They didn't know how. They'd never taken any business courses.
They had no business experience. They don't know anything about
taxes, accounting, marketing, and they myriad other skills a
good entrepreneur must possess.
Not all responded with all four objections, although most
responded with more than one. Surprisingly, "I don't know how"
was the most common response. A lot of folks said they wished
they had taken the plunge earlier in their lives, but they just
weren't the Mavericks they once were. They had a mortgage to pay
and a family to feed. They felt is was - too late.
Now comes the fun part.
Would you ever consider going into business for yourself if; the
total start up costs were under $500, the total time investment
could be as little as 5-15 hours a week, you could continue to
work in your present job until the income from your business was
sufficient to earn you at least an equal income, so there is
little risk, and best of all, there were numerous consultants
available to you who are experts at running this business, who
would train and advise you personally, for an unlimited number
of hours, for the entire life of your business, absolutely free!
Not only that, but there is another company that will take care
of all your research and development, labeling, inventory,
shipping, payroll, payroll and sales taxes, most legal
questions, and so on. And, this company will do this for you
every month, for the life of your business, for around, oh,
$25.00 a year?
Right now, your probably remembering the old adage "If it sounds
too good to be true..." Fine. But, hypothetically, would you
consider it if all this were true? "Well, sure..." you're
probably thunking, "...but there's got to be a catch."
Not only is there no catch, I didn't even hype the pitch by one
iota. These are exactly the conditions in which thousands of
successful network marketing ventures have begun.
Sure, some overly zealous networkers may tell you how rich
you're going to get, how easy it is, and how fast it will
happen. Please note, I didn't say that! Network marketing is a
serious business, no less than any other you might consider
earning your living at for the rest of your life. The reality
is, network marketing is hard work, it takes time, and you'll
probably lose some money in the beginning. The difference is,
most of the hardest work is done by someone else, your work is
done when you choose to do it, it typically takes a few months
to turn a profit (some accomplish this in the first month)
rather than a few years, and what amount you might lose at first
has one, two, maybe even three fewer digits compared to the
start up loses of most conventional businesses. Yet, you can
still reap the tax benefits of operating your own business, and
you have just as much, if not more income potential as most
conventional businesses!
Imagine becoming financially independent in one to three years
without having to spend thousands of dollars each month, without
having to work long hours seven days a week, without even having
to quit your job during the development stage, and without
having to get a business degree, or hire someone who has one?
If you are considering starting your own business, and you've
got access to, let's say, $50,000 in start up funds (a very
modest assumption), imagine how profitable you could be, and how
quickly, if you didn't have to hire employees, you didn't have
to lease an office and/or store front and/or warehouse, you
didn't have to pay sales or payroll taxes, you didn't have to
spend one penny on R&D, graphics design, or development of
promotional material, and you didn't have to hire an accountant,
lawyer, or business consultant. And, imagine how much more money
might go into your pocket if you didn't need business partners
to help you finance and run the business. Think about it, and
try not to become giddy.
Now for the really fun part.
Imagine buying a McDonald's franchise for the modest sum of one
million dollars. The business fails. You call up McDonald's
corporate and ask for a "Return Authorization Number" so you can
get your franchise fee back along with a reimbursement check for
your unsold supplies and stock. While imagining this scene, also
imagine the sound of sirens wailing in the background. That
would either be the paramedics coming to assist the poor
corporate officer who you've just induced into a fit of
hysterics, or an ambulance coming to take you to a really nice,
soft room.
In network marketing, not only is this not an absurd scenario,
it's the law! One of the aspects of a legitimate, legal network
marketing company is the ability of a failed distributor to get
a full refund (usually less a 10% restocking and processing fee)
on all product and marketing material that is in resalable
condition. So, if pursued conservatively and intelligently,
there is a monumental reduction in risk relative to conventional
business start ups, yet with a comparable or even greater profit
opportunity.
Those of you who are already actively involved in network
marketing, be aware that the vast majority of your "outer
circle" prospects (those who've never been involved in network
marketing) do have at least the desire to own their own
business, as opposed to working for someone else. You don't have
to talk them into the benefits of something they're already
dreaming about having. But, they also have some very powerful,
legitimate fears about starting their own business. You've first
got to open their mind to the idea that there is still a
realistic way to achieve that dream, and then define, or perhaps
defend, the concept of network marketing (gratuitous plug: my
"Case Closed" cassette tape is designed to accomplish both of
these steps for you). Only then should you introduce the
benefits of your particular network marketing program. Think of
it like this: before you can pour fresh, hot coffee into a
thermos, you must first open it, then pour the old, stale coffee
out, right? Think of your business-phobic prospect as a sealed
thermos full of cold coffee.
Now, if you are considering starting your own business, or you
want to but have always been apprehensive, open your own mind to
network marketing. Think it's too good to be true? I challenge
you - find the catch! If you've never pursued a network
marketing venture it must be for one of two reasons: you just
didn't know about it, or you have a prejudice against it. And
that's exactly what it is, a prejudice. You have prejudged this
business based on what someone else has told you about it
(usually someone who has failed at it, or who has also never
been involved themselves). In other words, you've chosen to
adopt someone else's opinion of this business. Don't let other
people do your thinking for you. Make your own decision based on
your own evaluation.
Check this business out. Really do your due-diligence. And when
you are done, I would defy anyone, even the most devout skeptic,
to not experience a significant paradigm shift.
I dare you to look and not be intrigued!