One of the biggest obstacles between people and true wealth generation is the fear of risk. Everyone knows that the real money isn’t in 9-to-5 jobs but in entrepreneurship and business ownership. However, there’s always the not-so-little fear of risk and massive failure that stops people.
Interestingly, a recent survey by Gallup shows that more than 62% of Americans prefer to be their own boss. Of these people, 70% are risk-tolerant and are willing to put their chips on the table. If you feel like you’re in the 30% that lack the courage to take on risks, then this article is for you.
Today, we’ll explore three insightful ways you can overcome your fears and potentially make your fortune.
#1. Decide Between the Two Mindset Choices
When it comes to starting your own business and facing the potential of failure, there are two mindset choices you can adopt. The first mindset choice revolves around relying on a desperate need for success. Think of it as an all-or-nothing approach where failure isn’t an option. This is the kind of mindset where you’re even willing to use your personal savings if it comes to that.
The second mindset is to approach entrepreneurship as a sort of strategic gamble. You commit to doing your best, but if it fails, your strategic preparations ensure that life isn’t too affected. This works well if the business model is small enough that you can eat the loss and either start over or move on.
Think of businesses where your investments can be kept to a minimum. Instead of paying for expensive advertisements, you could make use of free and organic social media marketing. Similarly, instead of paying hundreds or thousands of dollars to a website designer, you could use an affordable AI website builder. Yes, that’s a thing in 2025, and you can make full-fledged business websites with just a few prompts.
Many businesses work well with such low-investment operational choices. According to Hocoos, these include dropshipping, social media, and graphic designing.
Regardless of which risk-oriented mindset you lean toward, both have their pros and cons. This is why the one you pick ought to be based on your personality. Reflect on your own actions in the past.
Do you perform best when the consequence of failure is bearing down on you? If so, the first mindset can be a surprisingly effective way to deal with fear of risks. You are throwing yourself into the water and believing in your survival skills to help you swim.
On the other hand, the strategic gamble might be better if you have dependents. A wife and two kids at home aren’t going to appreciate you risking everything. Thus, consider your circumstances and choose wisely.
#2. Realize that Lack of Knowledge is a Huge Factor in Fear
One of the reasons that people are afraid of starting a business is that they have zero clue about what it involves. They hear snippets about what it’s like from social media and friends, but they have no real understanding beyond that. Here’s a small exercise: sit down and clearly write out what aspects of entrepreneurship scare you.
Your answers might include:
- Fear of losing personal savings
- Fear of being responsible for decisions and outcomes.
- Fear of competing with other businesses or large corporations.
- Concern over not having enough industry expertise.
- Anxiety about marketing, sales, or financial management skills.
It doesn’t matter what your fears are, the first part is to bring some clarity into the picture. The great thing about entrepreneurship is that it isn’t new. You’re not trying to land a rover on a planet here. Not only are there enough resources to help you, but there are also plenty of people who’ve overcome these fears with half your knowledge.
We don’t say that just to make you feel better as well. Swedish researchers found that while annual earnings up to €60,000 scale with cognitive ability, the top 1% scored slightly lower than those below them. Essentially, there’s a plateauing effect, and you don’t really have to be Einstein to reach the top.
So, strive to close your knowledge gap and remember that on a human level, you aren’t too different from billionaires. It’s all a matter of perspective.
#3. Start With Smaller Risks
Sometimes, throwing yourself into the deep end or educating yourself just won’t do it. When there’s a mental blockage, sometimes, the only way to get over your fear is to expose yourself to risk in a controlled manner.
Try to start taking risks in areas of life with low consequences, like in relationships with acquaintances and random everyday moments. You might discover that the consequences of risks don’t always result in black-and-white outcomes.
There are many steps you can take to get comfortable with risks in this manner. According to experts, these include assessing risk from both emotional and data-driven perspectives, taking ‘baby steps,’ and shifting your mindset around failure.
The points we covered in this article are just a few approaches you can take to deal with a fear of risk. At the end of the day, you can try as many mental exercises as you want, but the true learning moments happen in real life. So, start with those baby steps and see where it goes.