Many people look at business owners and think we have it all. Certainly, there are many great reasons for setting up on your own. Yet there are a lot of points that need to be considered. Many of which we may not think about until we get started.
This year I am in business 25 years. It’s a proud moment for me as I sit and reflect upon the ups and downs I faced along the way.
I have definitely experienced a lot of highs and had oodles of work. They include times when I have witnessed positive change in people, helped companies make great improvements or received a simple thank you.
The tougher times I encountered have always kept me grounded. I have learnt to turn struggles into learning opportunities. There were also leaner periods, especially during the last recession. These were testing times when I had to dig deep, be strong and just keep going.
In my earlier years, I will always remember hearing someone say that “For every one company that survives beyond three years, sadly there are two that fail”.
I have always been an independent thinker and I like the autonomy of doing my own thing. Thankfully, I am tenacious by nature. I am also very passionate about customers and believe we need to put them first.
So, having a customer mindset, a strong sales background and a determined streak, I realise this has served me well. Along with amazing advice which has helped me to weather the storms and remain in the game for so long.
This got me thinking about what I might suggest to someone starting off and I came up with the following 5 points:
- Nothing fancy – One of the first pieces of advice I received was not to rent a “fancy premises” or print a “glossy brochure”. Thankfully, the nature of my work allowed me to set up at home. And I started with a basic website. I realised I needed to stay grounded as neither were going to generate customers – it was down to me to get out and do it. And this meant rolling my sleeves up every time.
- Watch your money – The discipline of managing cashflow is vital to any business, as sadly, this is often why many companies fail. I remember being told to retain between 3-6 months money at any one time. It was also suggested that I keep a separate business bank account to my personal one. And only to pay myself a set amount each month irrespective of how much I brought in, especially in busy periods.
- Know your strengths and blind spots – I sat down with a coach earlier on, and we did an analysis of my strengths and weakness. I quickly learnt what I was good at and where I could shine. We also looked at the areas where I had limitations and needed to improve. Other options we discussed included looking at areas I could seek training, ask for help or even outsource.
- Stick to your knitting – We may start off selling a particular product or service. Over time, customers may ask for something new and we want to please them. So, we might extend our offerings, upgrade or even change direction. The key is not to say yes to everyone who asks – make sure there is a market. Also avoid diversifying too much away from your core knowledge or capabilities. Otherwise, we end up being “a jack of all trades” and spread ourselves too thin. Quality goes down, our reputation suffers and we potentially lose a lot of time and money.
- And finally, remember why you started - Many years ago I was offered investment to take on staff and build the business. Whilst it was a great compliment, I realised I would be answerable to someone else and the entire reason for going out on my own was to be on my own boss. That said, if this is what I had wanted – then it would have been right to go for it. Remember, always be true to yourself and never let your ego get in the way when making important decisions.