Entrepreneurship and the Fear of Taking the Leap

By: Leybis Flores

We have all, at some point, contemplated starting our own business or had an idea that could evolve into one. And I am certain that, in these moments, the doubt or hesitation has sounded something like: “I want to start a business, but I really don’t want to launch without the security of knowing it will work.” Or, for those with partners or family responsibilities: “I could do it, but I wouldn’t have the financial security to meet my obligations.”

And do not get me wrong, it is important to have a business and financial plan, and before you start getting all in, having savings and a income that can support the transition. 

If this resonates with you, know that you are not alone; many successful entrepreneurs and leaders have gone through the same period of uncertainty. Worse, some failed before they ultimately succeeded. But in my opinion, “the greatest failure is the one you never even attempt” (read that again).

Our Story

Before establishing Impulso, we experienced a major setback: our first partnership did not work out. After six months in a foreign country, due to differences among the partners and other circumstances, we had to pack our bags, move to Panama, and start over from scratch—even leaving a client we had already secured.

Returning to the Subject

And yes, it is true! A salary helps you know that you will have a fixed monthly income to cover needs, debts, desires, and so on. But if the idea of losing economic dependence is what terrifies you, I believe there is something worse: dwelling on the “what if…” or lamenting, “Oh! I had that idea too.”

Nothing is easy, nor does success happen magically. However, there are certain things that are critically important—your “AHA Moment” or brilliant idea—that you must clarify before you resign from your current job.

• • Jot down the idea before it slips away – (They always do…).

• • Think about who can benefit or who would love it, we call it “your buyer persona”– (This is your niche or segment; remember, your idea doesn’t have to appeal to everyone, and that’s normal).

• • Conduct market research and identify your competitors or substitutes.

• • Ask your family and friends for their opinions. I also advise seeking out experienced professionals or even colleagues who can help you refine the idea. In other words, find mentors.

• • Create a business model. For me, this is the key to everything. The idea may be brilliant, but if there is no business model to back it up and allow you to monetize it, it is just an idea. I highly recommend the Canvas Business Model. And remember that a crucial element is answering: How do you differentiate yourself from the rest, and what is your added value?

• • Complete a financial feasibility study to understand if it is economically viable, including how much capital you need to secure or save.

The Business Model and Compensation

However, I will pause here to focus on the business model. I have heard friends who started their businesses say, “Well, in the end, nothing is left for me, and I don’t pay myself because I am the owner.” My question is: Then how do we live?

I want to share a very basic “administrative” model that worked for us to secure a monthly fee/honorarium (which, initially, helps protect the business’s cash flow while you capitalize it). I believe this can be very useful for starting, especially if you have low capital. And I want to be clear: there is no perfect recipe; this method simply worked for us as we launched.

1. 1. Define ALL costs related to the product or service.

1. 1. Your time is valuable! Even if you are the owner, if part of your offering depends on you, consider that if you were not there, you would have to pay someone. So, put a price on your time. Depending on the situation, you can allocate a percentage of labor to the product, or, if it is a service, calculate the estimated time invested in the project and establish an hourly rate. Importantly, if you have a team, you must account for them here as well.

1. 1. Allocate a percentage for your fixed costs. Remember, the operation needs to be sustained.

1. 1. Once you have the costs associated with the sales price, it is time to establish the profit margin.

With this approach, you cover the costs associated with the product/service, you pay yourself a monthly honorarium (no matter how minimal), and the profit margin remains with the company. Try to capitalize the business based on the profit margin. It is also good to look at it from a financial perspective: if you set a fixed salary for yourself, what must be the minimum monthly sales you need to at least reach a break-even point and cover all expenses?

In summary, fear will never entirely disappear because we cannot avoid the uncertainty of whether something will work or not. But if an idea is well-defined, you have completed market and financial feasibility studies, and you have a solid business plan, your only real risk is that someone else does it first. As the saying goes, “The early bird catches the worm.” I hope this serves as motivation to dare to take that step.