Are you scared to invest in your business?
Seven years ago, I bootstrapped my business with my own savings, not taking out loans or relying on investors. It was just me, making things work under pretty tight conditions. When I started the business, I had one rule: don’t spend money until you’ve made money. There were, however, two exceptions: one was a terrible website I made on my own and then quickly discarded (because it was atrocious), and the other was investing $26,000 per year into a business school.
It felt like an enormous sum at the time, but I had faith that the work I would generate from being in that business school, would more than pay for the investment I was making. That decision turned out to be one of the best I ever made—I felt secure as I transitioned from my corporate role into my own business.
Now, let me ask you: would you have taken that risk? Women are quick to invest in our children, beauty routines, and family holidays, but when it comes to our businesses, we often hesitate and are scared to invest. In this episode, I dive into why this is the case.
1. Risk Aversion
Many women are naturally risk-averse, especially when it comes to financial investments. The fear of losing money or not seeing a return on investment can be a significant barrier.
2. Self-Doubt
We’ve all been there—doubting our worthiness and capabilities. This pesky imposter syndrome can lead to hesitation, stumping both personal and professional growth.
3. Cultural Conditioning
Societal norms and expectations have historically placed women in more conservative roles, discouraging us from taking financial risks or prioritising our own development over family responsibilities.
4. Lack of Role Models
The scarcity of visible female entrepreneurs makes it tough for women to envision success in similar roles. Without relatable examples, the path can look uncertain.
5. Financial Constraints
Unique financial challenges, like the gender pay gap and career interruptions due to having children, often stand in the way of investing in our business and personal growth.
6. Fear of Failure
The fear of failure, along with potential public scrutiny, can feel paralysing to a lot of women. Some women feel they have more to prove and less room for error, deterring them from taking risks.
7. Lack of Support System
A lack of supportive networks and mentorship can make the journey feel isolating. Women can struggle to find the encouragement and guidance needed to confidently invest in themselves.
So, how do we overcome these barriers? Here are my top five strategies.
- Build a Supportive Community
When I started my business, I had my business school community but no women-in-business community. So, I created one: Lunch with the Queen. I created the community that I felt was for me and it was a fantastic experience. Engaging with women-centric business groups, mentoring groups, and networking events can connect you with like-minded individuals.
- Seek Mentors
Finding mentors who have navigated similar paths is invaluable. Some mentors you’ll need to make a financial investment into, others may share their wisdom freely. Either way, their guidance is invaluable.
- Invest in Education and Training
Enrol in courses, workshops, and seminars to enhance your skills and knowledge. This boosts confidence and competence in your business domain. That said, don’t use continuous learning as an excuse to procrastinate. Sometimes, you just need to get out there and start doing.
- Develop Financial Literacy
Create a budget that allocates funds specifically for personal and business investments. Regular saving alleviates financial pressure, and having a buffer can help during quiet months. There are a variety of grants or investment opportunities tailored for women out there if you’re open to looking around.
- Prioritise Self-Care and Wellbeing
Balancing life—ensuring you maintain your mental, physical, and emotional wellbeing—helps you make clear, confident decisions. Practices like mindfulness, meditation, and journaling can manage stress and build resilience. I personally meditate every day, and I’ve seen significant improvements in my mental health as a resullt.
Being scared to invest in your business is understandable, but the potential rewards far outweigh the risks. Build a supportive network, seek mentorship, and continually educate yourself. Prioritise your wellbeing and finances smartly. With these strategies, you’ll be well on your way to overcoming the fear that holds you back.
I hope my tips have been helpful. Pick one and try it. Give it enough time to work, and if it does, let me know
LINKS
For a copy of Emma’s book, ‘Go-getter: Raise your mojo, shift your mindset and thrive’ – https://www.emmamcqueen.com.au/book/