Comfort or fear.
It really all comes back to these two reasons for me. I think about new ventures to start every single day. I right them down, I tell them to people, I get feedback, I even write about them. 99% of the time I make no attempt at all to try or test the idea.
I try to test new ideas periodically. Out of those, only a select few actually get pursued with any really time and effort.
I could say that the reason I don’t start more small businesses or create new ventures is because I’ve analyzed them and made a calculated decision not too. The reality though is that most of time I don’t need to.
If you already have a source of income that is meeting your needs, you will become comfortable. You won’t be forced to take the plunge on new ideas. When you have either a good career or successful business already, it’s really hard to push yourself to do something extra or different.
The other factor is fear.
I have a good method to earn money and several places to invest money that I am comfortable with. Sinking time and money into a new small business means giving up an opportunity to make money elsewhere.
If I spend money testing a new product idea, that is money that I’m taking out of my stock and real estate portfolio. I have a very high level of confidence in my stock and real estate investments, it’s scary to take money out and put it into something more risky.
The reality is when you analyze the real risk and return of starting a small business or new venture, for most people it should be a no brainer.
If you are like most people, earning an average or even above average wage at your day job, starting a small business on the side has the potential to create life changing money. For most people, earning even just a few hundred dollars extra each money could change their life. Most people also have jobs with set income and hours, which means they won’t see a direct return from working more. If this is true, they need to look outside their day job to make extra money.
The reality is most people don’t earn very much money, even just a minor level of success in a small business can easily replace their day job income.
Think about if you could invest a little bit of time and $1,000 to test a new business idea. If it works, you could end up with a life changing business. If it fails, you lost a small amount of money and a few hours of your time.
Even if that idea only has a 10% chance of success, that amazing odds when you consider the potential positive outcome.
You can also start more than one. You get to try as many businesses as you want until one works. I’ve you really were serious about it, you could at least test a business or product idea in a month. You may not make a profit, but you can probably figure out if the idea is worth pursuing further in that time. Do this 12 time in a year; you’ll have a new successful business sooner than you know.
Worried about that opportunity cost? Is there some other place you can invest money to make 2x, 5x, 10x your money in a month? Probably not. Is the time you invest on this new business going to impact other parts of your life? Or will it just cut into how much TV you watch?
Pull the trigger and go for it.
For more check out a post I wrote about new microbusinesses