In my previous post I talked about the importance of attaching a cost to everything (ahead of time) and the role that outside experts and consultants can play in your business success. In keeping with the same ideas, here are some additional things to be aware of. May you avoid some of the pitfalls that we fell into!
Have a Plan...
Then Stick to it and revise it as necessary. I had the opportunity to take an intensive business planning course prior to the launch of the business and it was incredibly helpful. We all know that a plan serves as a road map to help get you from point A to point B. Writing a business plan forces you to put pen to paper and clearly state what the business is all about, what the goals are, and the strategy for success. This is effective in establishing a clear vision as it helps you to see holes where you didn't before.
Sticking to the plan and/or modifying it periodically are important because sometimes we must take detours from the original map. It's easy to get side tracked and detoured so review the plan regularly to make sure that the road you are on is the right one. And remember, the plan is fluid, so as your business changes and grows, your plan will need to do the same.
Set Your Goals
Most of us have attended work shops, read books, or seen a motivational speeches that inspire us to reach for the stars, grow, get outside our comfort zones, etc. to accomplish our dreams. We have heard about the importance of goal setting in this process, yet many of us (including myself) do not set goals for ourselves. Or, if we do, we have trouble connecting the long term goal to what we do every day.
I recently worked with a couple that were also business partners. They contacted me because last year their business was tremendously successful with sales falling into their lap. The first quarter of this year had started out much more slowly. When asked what the goals for the year were, they said they just wanted to be busy and make tons of money. While most of us share the same goal, quantifying what "good" and "lots of money" mean are important in setting a realistic, reachable goal. After establishing SMART goals comes the hard part-breaking them down into bit size pieces that can be chewed on a daily basis. Then of course, one must actually take those daily bites. In other words, this whole exercise is futile if the daily or weekly tasks needed to achieve the big goal are not executed.
Much like having a sound business plan, goal setting (and execution) help us to see things more clearly. Try writing 3 goals on your white board or a sticky note on your monitor and then ask yourself each day "what am I doing today to achieve that goal?" "Have I done my daily/weekly task?" Is what I'm working on right now helping me to reach any of these goals?"
Look forward to more pitfalls (and how to avoid them!) next week.
Friday, April 26, 2013
Tuesday, April 16, 2013
Watch Out For The Pitfall-Starting Your Own Business 1
We launched Pathfinder Strategies in the fall of 2012 with all the tools, resources and knowledge necessary to be successful. Or so we thought. Yes, we had established our first client, we had a sound business plan, a mentor/coach and we had even created an advisory board to help us in the areas in which we lacked. But here we are 6 months later in quite a different spot than we had expected. Thankfully business is moving right along despite some of the more difficult lessons we have learned. We wanted to share our hard lessons so hopefully others will have a better set of expectations than we did.
Attach a Price Tag to EVERYTHING
We had a fund for our business set aside prior to launch. We anticipated that the fund would carry us through for roughly 5 or 6 months with no income coming in. What we didn't realize was how quickly little things like business cards and networking events would add up. And that's just the small costs.
Probably the biggest and earliest lesson we learned about spending money came when we were working on our website. We had a friend who had offered to help us put the site together at what we assumed would be at a discounted price. She had done some web design before so we trusted her and we were excited to be getting "a deal." So, we went through the motions of getting the site put together. When it was done and we saw the bill, we almost fell out of our chairs. The pricing she gave us was not discounted at all. Furthermore, many things that come standard with a website like key word analysis, optimization, etc. were not included. The lesson: Ask questions and set expectations up front. Had we known what we were getting for the money we may have gone a different route.
Save Time-Laser Focus Your Efforts
So, I said we had had a business plan-I didn't say we were good about following it. The business plan had specific guidelines and budgets. But having established the plan prior to actually starting the business, there were things that we simply didn't account for. Things like attending networking events, professional development opportunities and participating in the local chamber of commerce. And of course, everyone has a leads or networking group that they want you to join. We were so excited when we started that we basically attended everything. As you can imagine this was a drain on both our wallets and our time. Not to mention that the return on investment was fairly low.
If you are a small business or running your business solo then you know that time is one of your most precious resources. It is vital that you identify and engage in the activities that are most advantageous to your business and make the most sense for your time and wallet. This can be a bit of a learning process. The good news is that most groups allow you to visit once or twice before making any type of commitment. As you attend these events ask yourself: Am I making meaningful connections for my business? Am I establishing or furthering mutually beneficial relationships? Am I learning something that is useful to me in my business? Is the time and location of the event conducive to your schedule? Is the cost a value? It will take a bit of time but you will figure out which events and groups are right for you.
You Don't Have to be an Expert at Everything
Most people who take the leap to start their own business do so because they have a very specific passion or area of expertise. This may not include being an expert book keeper, web designer, social media expert or talent developer. After the first few months of trying to manage the books myself I was frustrated, bogged down and probably not doing a very good job. So we outsourced that task which was a huge relief. Trust me, if you like sleep and don't want to tear your hair out, outsource these things to the experts. It frees up your time, gives you the guidance you really need and allows you to focus on the parts of the business you are passionate about. I would suggest identifying these areas early on and accounting for consulting/outsourcing costs in your budget.
What hard learned lessons of starting your business have you experienced? Stay tuned for more lessons from Pathfinder Strategies!
Brandy Ferrer
President and Co-Founder, Pathfinder Strategies
Attach a Price Tag to EVERYTHING
We had a fund for our business set aside prior to launch. We anticipated that the fund would carry us through for roughly 5 or 6 months with no income coming in. What we didn't realize was how quickly little things like business cards and networking events would add up. And that's just the small costs.
Probably the biggest and earliest lesson we learned about spending money came when we were working on our website. We had a friend who had offered to help us put the site together at what we assumed would be at a discounted price. She had done some web design before so we trusted her and we were excited to be getting "a deal." So, we went through the motions of getting the site put together. When it was done and we saw the bill, we almost fell out of our chairs. The pricing she gave us was not discounted at all. Furthermore, many things that come standard with a website like key word analysis, optimization, etc. were not included. The lesson: Ask questions and set expectations up front. Had we known what we were getting for the money we may have gone a different route.
Save Time-Laser Focus Your Efforts
So, I said we had had a business plan-I didn't say we were good about following it. The business plan had specific guidelines and budgets. But having established the plan prior to actually starting the business, there were things that we simply didn't account for. Things like attending networking events, professional development opportunities and participating in the local chamber of commerce. And of course, everyone has a leads or networking group that they want you to join. We were so excited when we started that we basically attended everything. As you can imagine this was a drain on both our wallets and our time. Not to mention that the return on investment was fairly low.
If you are a small business or running your business solo then you know that time is one of your most precious resources. It is vital that you identify and engage in the activities that are most advantageous to your business and make the most sense for your time and wallet. This can be a bit of a learning process. The good news is that most groups allow you to visit once or twice before making any type of commitment. As you attend these events ask yourself: Am I making meaningful connections for my business? Am I establishing or furthering mutually beneficial relationships? Am I learning something that is useful to me in my business? Is the time and location of the event conducive to your schedule? Is the cost a value? It will take a bit of time but you will figure out which events and groups are right for you.
You Don't Have to be an Expert at Everything
Most people who take the leap to start their own business do so because they have a very specific passion or area of expertise. This may not include being an expert book keeper, web designer, social media expert or talent developer. After the first few months of trying to manage the books myself I was frustrated, bogged down and probably not doing a very good job. So we outsourced that task which was a huge relief. Trust me, if you like sleep and don't want to tear your hair out, outsource these things to the experts. It frees up your time, gives you the guidance you really need and allows you to focus on the parts of the business you are passionate about. I would suggest identifying these areas early on and accounting for consulting/outsourcing costs in your budget.
What hard learned lessons of starting your business have you experienced? Stay tuned for more lessons from Pathfinder Strategies!
Brandy Ferrer
President and Co-Founder, Pathfinder Strategies
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