Mistakes or Milestones? Three Learning Opportunities You May Encounter as a Small Business Owner
Starting a business is an overwhelming mix of excitement, nervous energy, and constantly second guessing every single decision you make. Learning on the fly is a critical part of every new business owner’s journey, as is making mistakes. However, there are some mistakes that are more common among new business owners and can be relatively easy to avoid with knowledge and preparation. Truthfully, every mistake is really just a learning opportunity.
The first learning opportunity is not having a defined niche. Your business cannot please everyone. It cannot help everyone. By trying to be the business for everyone’s problems, you now spread yourself so thin that you lose any and all identity you’ve tried to build up for yourself. Instead, try creating your ideal customer and working backwards from there. Are they male or female, in their 20s or 60s, athletic or artistic? Do they love coffee or are they more a tea person? Is their favourite colour Millennial Gray or are they lovers of neons? Are they at Costco at 1pm on a Tuesday? Knowing who your ideal customer is is so beneficial and directly translates into your initial marketing efforts.
The second learning opportunity is neglecting your financials. Finances may seem irrelevant when you’re just trying to get your business up and running, but having a system for how you handle revenue and expenses is critical. My advice here is to make a super simple budget. What money is coming in, what money is being spent, and then reviewing that once a week to ensure you are happy with your money’s allocation in your business. In the first couple months of your business, you may have a negative budget… and that’s completely ok. As long as you know what you’re spending your money on and know how much money you have until you need to start panicking (fancy term for this is your burn rate), then you’ll be ok.
The third learning opportunity is complicating the process. I’ll always remember the first time one of my business teachers told the class to always make sure you KISS it. The shortened version of Keep It Simple, Silly (substitute this last one with whatever “s” word you would like), the acronym may seem ridiculous, but it is absolutely critical for small businesses. As your business starts to grow, natural human instincts suggest we aim for the newest, shiniest, and fancy tool that we can find. However, over-complicating processes can lead to complexity, which then leads to not wanting to actually follow pre-determined processes. The most important process is the one your business (and you) are happy and inclined to follow. If you require seven layers of authentications, four hours of software setup, or two hours with your head buried in a spreadsheet, ask yourself if you need to KISS it.
Starting a business is overwhelming and mistakes will be made. Being a business owner isn’t about being perfect. It’s about noticing when you are on a slippery slope, pivoting when necessary, and remembering that mistakes are a part of your growth journey and are simply a learning opportunity. If you feel like you might need help identifying these opportunities, reach out for a clarity call at www.korporateconsultingservices.com.