What do you think is the #1 determinant of a personâ€™s success or failure in any given activity? Do you think itâ€™s money? How about intelligence? Natural disposition? Supporting relationships? All of these have an impact, no doubt. But the #1 determinant (and most accurate predictor) of success or failure is a concept many people have never heard of: self-efficacy.

Self-Efficacy vs. Self-Esteem

Self-efficacy is defined as confidence in your ability to achieve a desired outcome, whereas self-esteem is a general feeling about your self-worth.

Self-esteem asks, “How do I feel about myself?”

Self-efficacy asks, “Can I do this?”

Why is Self-Efficacy Important?

As I already mentioned, self-efficacy is the single greatest determinant of your success or failure. If you have high self-efficacy, you are one step ahead of everyone else because you are willing to put your plans into motion.Â Â Â Â

Maybe youâ€™ve always wanted to start your own business or go back to school â€” So why havenâ€™t you? Because you think you will fail? Some people are so afraid of failure they never follow their heart. When asked why they never went to college, pursued the career of their dreams, or attempted to find more satisfying relationships, they respond by saying, “Oh, I couldnâ€™t do that.”

This attitude is self-defeating. Even if youÂ lack the skills to be successful at something today, you might develop the skillsÂ tomorrow if youÂ start trying.Â Â

I am reminded of a quote from the movie Batman Begins, when Alfred says, “Why do we fall, Master Wayne? So that we can learn to pick ourselves up.”

We learn from our failures. Just think about how many times you fellÂ before youÂ walked, how many meaningless sounds you made before you talked. If you won’t risk failure,Â you’llÂ never grow. The sad irony is that the people with the greatest certainty of success (as determined by a high self-efficacy) are the ones most willing to risk failure. This says something about human nature: Even though failure is essential to growth, no one likes to fail. Certainty of success breeds action. FearÂ of failure breeds inaction and ineptitude.

Itâ€™s a vicious cycle. If you lack self-efficacy, you will fear failure.Â Â If you fear failure,Â you will never act. If you never act, you willÂ never succeed. And if you never succeed, youÂ will never develop self-efficacy.

Developing Self-Efficacy

You canÂ build self-efficacy by accomplishing something.Â AccomplishmentÂ helps youÂ learn to trust your skills.

Spend a few minutes thinking of something you have always wanted to do. Pick something challenging, yet achievable.

NowÂ create a plan, writing down eachÂ step requiredÂ to obtain your goal.Â

Once you have your plan, work it.Â Â The first step you completeÂ is the most important because it signals commitment to action.Â Â Youâ€™re probably going to fail, butÂ as Alfred so eloquently said, we fall soÂ we can learn to pick ourselves up.

Instead of fearing failure, embrace it. Failure is your friend! As long as your failures are a natural product of working your plan and are moving you closer to your desired end-state, they are good. When you fail,Â figure out why and be determined to learn from it. What can you do to improve your chances of success next time? Find someone who has accomplished what you are trying to do and ask for her advice.

As you workÂ your plan, be tenacious.Â Â Success breeds self-efficacy, which breeds more success.Â Pretty soon you’ll be wondering what all the fuss was about.