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Rhonda Abrams The Passionate Entrepreneur

Rhonda Abrams, The Passionate Entrepreneur

Beating the Fraud Factor

by Rhonda Abrams

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Posted on Tuesday, December 19, 2006, 12:00AM

In yesterday's column, I described a feeling that many novice entrepreneurs experience -- "the fraud factor." It's the feeling that what you're doing isn't really real, that you're not really capable, that you're acting a part.

Much of the fraud factor simply comes from being new in business. And time will heal that problem.

But until you've got enough time and experience under your belt, what else can you do to reduce the fraud factor? Here are a few tips:

  • Get educated: The more educated you are about business, the more confident you'll feel.

    By education, I don't necessarily mean getting an MBA. Often, some of the most practical business education comes from seminars or workshops run by industry associations, entrepreneurs' groups, or university extension programs.

    And keep reading your newspapers' business section, business magazines, and business books.

  • Get connected: Join with other entrepreneurs. Every industry has a trade association; many have local chapters, and most communities have entrepreneurs' organizations.

    It helps to feel like an entrepreneur when you hang out with other entrepreneurs. And this is good networking for your business, too!

  • Get credentials: Most professions and trades offer some form of advanced certification program.

    These credentials are important to others -- particularly potential customers and referral sources -- and show that you've acquired the background to do your job. But they also increase your own sense of confidence.

  • Give yourself credit: You may be new to running a business, but you have other experience that makes you capable of doing what you're doing.

    You've probably worked for years as an employee, perhaps in the same or a related field. Even those in their early 20s usually have had some relevant history -- summer jobs, organizing youth groups, selling Girl Scout cookies. Remind yourself of your experience whenever you feel like you're brand new.

  • Get real: The surest way to feel like a fraud is to be a fraud. If you misrepresent yourself to potential customers to land a client or make a sale, you'll never stop feeling like you're impersonating someone capable.

    When potential clients ask you about your experience, be honest about your background, education, and the time you've been in business. You'll still be able to compete because you're probably charging less or providing a different type of product or service than your competitors.

So what did I say to my friend who asked the question about when I knew I was good at my job? I told her I really didn't know. One day I just did. And so will you.

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