Starting a business is a nerve-wracking experience. Even if you have put a lot of thought and work into your idea and feel confident in your plan, it’s hard to officially take that leap of faith and get started.
In fact, results from a new Shopify survey show that even though most aspiring entrepreneurs say they’re ready to get started, there are still things holding them back, whether that’s money, still developing their idea, or not being fully ready. However, current founders often wish they hadn’t waited so long to start, and urge aspiring founders not to wait for “ready”.
Aspiring Founders are Struggling with the Preparedness Paradox
While many aspiring founders feel that they’re ready to launch their business and could even start immediately, something is holding them back. In fact, according to new data from a survey conducted by Shopify and The Harris Poll, 93% of aspiring entrepreneurs are at least somewhat ready to start a business, and over half of them could even start today.
But despite this feeling of readiness, many would-be founders still aren’t starting their businesses. This is called the preparation paradox, according to Shopify. Even though many technical and practical barriers have been cleared, psychological barriers often remain for these aspiring owners.
This could be a fear of failing, a feeling of not being ready, being scared of the work involved, or any number of other things. However, what these people waiting to start until they feel ready don’t realize is that they likely won’t feel ready until they start.
While the survey talked to aspiring founders, it also talked to current founders about when they got started, and even though most didn’t wait until they were ready before they started, they still wished they had started even sooner.
Tech and AI Make Getting Started Easier Than Ever
However, despite this general unwillingness to get started for some people, most agree that starting a business today is more accessible than ever. In fact, between 61% and 84% of respondents across the markets in the survey (USA, Australia, UK, France, and Canada) say that starting is easier than ever and requires less formal training and credentials.
The top reasons for this are that AI and modern tools have lowered both the cost and complexity of operating, and that platforms let you reach customers without having a big budget. Founders also credit tech the most for helping them reach customers and get set up to sell.
Between 23% and 33% of respondents say that AI lets them do things they couldn’t do otherwise, and up to 39% say it cuts both the time and effort required to run their business. Shopify itself is also enlisting the help of AI to make running a business easier, whether you’re managing your store directly in AI chats or using the Sidekick AI assistant for help.
In addition to current entrepreneurs, even aspiring business owners know AI is a major help when it comes to running a business. In fact, 30% of respondents across all markets say AI tools that make starting easier would be enough to push them to finally start.
What’s Holding Aspiring Founders Back?
While most people agree that it’s easier than ever to get started, and the AI/tools out there make operating easier than ever, many still haven’t taken the leap. So what’s holding them back?
Well, the top barrier that aspiring founders named in every market was money, ranging from 38% to 46% depending on the market. While there are ways to start an ecommerce business with little to no money, it’s often difficult to get started with limited funds.
However, while some people think they need enough money to go all-in on day one before they start, that’s not the case. Many entrepreneurs start small and within their means, before gradually scaling according to their success.
Outside of money, other major holdups for aspiring founders include not feeling prepared and the fact that they’re still developing their idea. These are many of the same reasons that current founders gave back when they were getting started, only that many of them simply took the leap rather than waiting to be ready.
In fact, in four of five markets, around 70% of founders say they worked through their early issues with trial and error, and many didn’t follow any sort of playbook. But when asked what they would’ve done differently, they didn’t wish they had waited until they were more prepared, but the opposite, as up to 57% of them wish they’d started sooner.
Our Take
Taking the Leap, But Doing It Responsibly
While Shopify highlights the importance of simply taking the leap as an aspiring entrepreneur and not waiting until you’re ready, it’s also a good idea to try to do this responsibly, as well. If you jump into it with nothing but a rough idea, hopes, and dreams, you may find it hard to get started.
Before jumping into your business idea with both feet, it’s a good idea to validate your product or service and ensure there’s a market for it. You should also have at least a rough plan that goes over your target, your potential pricing, how you’re going to reach customers, and more.
You should also do some homework about the industry you’re joining, the competitors in the space, and what customers resonate with in terms of marketing, design, and more. It’s also smart to consult your finances and ensure you have enough funds to survive while you try to build a business, as you may not see profit for a while, depending on your business.
While you’ll never have a perfect playbook or ever be 100% ready for anything the world may throw at you in business, making these small preparations can make all the difference in getting off on the right foot.
