The Fear of Failure Summary

Text Case Application #4 1. 2. 3. I think there are many reasons that entrepreneurs fail their first time around. These reasons include - lack of planning, little understanding of the market, and a poor business plan. Before creating a new business, the entrepreneur must research information regarding the realities of todays economic environment, political and legal environment, and the work environment. Entrepreneurs must also identify possible opportunities in the market and whether their business can offer a competitive advantage. A competitive advantage is what sets an organization apart from others. The third step in the entrepreneurial process is starting the venture. This stage requires further research into the feasibility of the project. This can be done by creating a feasibility study which is an analysis of the different aspects of a proposed venture. Included in this step is planning, organizing, and launching the venture. This is a crucial period that can make or break an entrepreneurial endeavor. Many upcoming entrepreneurs get fixated on launching their businesses quickly and fail to spend proper time analyzing and planning. As a result, this can cause immediate problems within the business and can weaken their opportunity in the market. The last step of the entrepreneurial process is managing the venture once it is launched. Without proper management, new ventures can quickly fail. Just because a business is launched does not guarantee success. Managing processes, people, and growth gives the venture the tools it needs to do well. In addition, a big part of the reason first time entrepreneurs fail is due to a poor business plan. A business plan is the written document that summarizes a business opportunity and defines how the opportunity can be seized and exploited. A business plan is composed of six attributes, and if these are not well thought out and executed, the entrepreneur will surely fail. The first part of the business plan is the executive summary. This is where the key points that the entrepreneur wants to make are summarized. The points may include the mission statement, primary goals, a brief history, and the nature of the business. The second aspect of the business plan includes an analysis of the opportunity. This presents the details of the perceived opportunity in the marketplace – demographics of the target market, industry trends, and evaluating the competition. The next part of the business plan includes the analysis of context, where the entrepreneur describes the external changes and trends of the economy. There is also a description of the business where the entrepreneur describes how the venture will be organized, launched, and managed. The last two phases give information on the financial data and projects as well as supporting documentation. The financial part of an upcoming business plays a big role on how well a venture does. This includes strategizing where they will get their funding from – venture capitalists, angel investors, or even out of pocket. I do think it is possible to be an immediate success when starting a business although I know that failures do allow for a more supportive backbone in the future. If a person spends a good amount of time researching the market and competitors of a proposed business venture and has the funds needed to pursue the business plan, then I do believe it is possible to succeed the first time around. Although, failing the first time helps the entrepreneur learn from their mistakes and it creates a pushing-forward mindset. If you go through life thinking that you will not fail, your shortcomings will hit you twice as hard. Overcoming challenges in life are the seeds to plant success. Nothing worthwhile is easy, learning from mistakes that happened in the past ensure that it will not repeat itself in the future. Once you overcome fear, opportunities are endless. We are faced with scary and uncomfortable situations every day, once you let go of the fear there is not much holding you back. A growth mindset is not something you are born with but a trait that is learned throughout time. As a child, when you fall, you are taught to get back up and try again. The reason for falling was not a lack of the ability to walk but a minor setback that can be solved over time. Being scared to fail can hold you back from your goals. Ways to develop a growth mindset include acknowledging and embracing imperfections. By hiding your weaknesses, you will never gain the tools to overcome them. Another way is by viewing challenges as opportunities. Indulging yourself in healthy competition gives room for self-improvement. In addition, putting an end to searching for constant approval can help develop a growth mindset. When you prioritize approval over learning you are stunting the room for growth. Another example of developing progress is by placing effort before talent. Just because you are good at a job does not mean you should stop motivating yourself to do better. Continuously putting effort into daily tasks help improve a growing mentality.