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

Being The Boss: Creating an Effective Team

Believe it or not, hiring employees to work for your company under the same vision and mission and putting them in close proximity cubes does not constitute effective team building.

Recently I worked with a client whose business was growing to the point where she had to take the big step of hiring employees. It seemed like the perfect solution; hiring employees would free up the business owner to focus on more strategic aspects of the business while the team delivered services.  Unfortunately this was not the case.  Once the team grew the trouble began.  Punctuality issues plagued several team members, interpersonal conflicts developed, gossip and disrespect abound and the level of service provided to customers soon began to suffer.

The business owner was in a panic.  She couldn't understand why the team couldn't get on the same page and why they were experiencing so many issues with one another, with her and most importantly with their customers.  Through several coaching sessions we discovered that there were a few issues, all of which stemmed from an inaccurate assumption that a team would simply form and gel because the group happened to work in the same geographic location.

Think about the most effective team that you have ever been on; perhaps a sports team, a special projects group or even in the military.  What made the team so effective?  Did you start off on day one knowing that your teammates had your back and they had yours?  Probably not.  An effective team takes effort, time and a common purpose, not to mention a strong leader nurturing the process.

Start by asking-what is the common purpose of this team?  Do all of the members of the team know and understand the common purpose and what their contributing roles are to the team?  Are team members communicating with you and with one another in a frank matter?  If not the team is probably not operating on cylinders. 

Take the time to establish the building blocks of common purpose, communication and expectations and watch how other key pieces like trust begin to take shape. 

It's Relationship Building Stupid!

I admit that I stumbled upon value of social media for businesses quite by accident.  I attended a seminar about email marketing and naturally the interconnectedness of email marketing to social media came up.   Sure, I had a personal Facebook page and Twitter account, and (I'm ashamed to admit) a neglected LinkedIn account, but I had yet to unlock the potential that social media offered from a business perspective. 

Upon sharing my excitement with my boss, I was quickly designated the company's "social media" expert.  However, when I actually sat down to start, I was stumped.  What should I tweet and post about?  It seemed to me that the purpose of using social media was to get people to use our services, but how many times could I talk about how great the company was before it became annoying and ineffective?

Those first few weeks were rough.  We got virtually no traction our profiles and I couldn't figure out why.  About that time I attended a marketing seminar to better understand what I was doing wrong.  The answer was as plain as the nose on my face.  "It's relationship building, stupid!" 

Turns out I had been going at it all wrong.  I had entered the social media scene in order to sell something.  When in reality I should have been spending time creating and nurturing online relationships and establishing the company as the expert in its respective field.  From that day forward the purpose of social media changed.  I stopped posting so many testimonials and started posting links to articles containing expert information.  I linked our newsletter to our social media outlets, I sent "how-to's" and surveys.  And most importantly I dedicated the necessary time to engaging other businesses through direct messaging, following, re-tweeting and "liking." 

Remember, social media is electronic word of mouth.  Take the time to establish yourself as the expert and to develop online relationships. 

A Successful Saturday

We all know that 3 of the 4 days of the Thanksgiving weekend aren't really meant to hang out with family and process the gross calorie intake from the holiday dinner. Nope-other than Thursday (and even that is in question for stores like Target and Wal-Mart) the long weekend is one for shopping.

As is tradition, my mom and I participated in the Black Friday frenzy. Each year, it gets crazier, weirder and much less jolly. But there's something to be said for getting deals at 3am.

So after all of the Black Friday shoving, shouting and horror stories, Small Business Saturday was a nice change of pace.

Started 3 years ago by American Express, Small Business Saturday is an opportunity for customers to support small businesses in the community. It is also an opportunity for small businesses to capitalize on one of the busiest shopping weekends of the year.

Thanks to power of social media, this special shopping holiday continues to grow in popularity and in sales! I have to say, grabbing coffee from the corner cafe and shopping at the consignment shop where everyone knows my name is way more fun than Black Friday.

Time to be Thankful

As a brand new business owner I have a whole set of new things to worry about, but I also have a slew of things to be thankful for.  This year I am thankful for...

Despite the  long hours and sporadic pay days that come with being a new business owner;, I appreciate that entrepreneurship and risk taking are valued in our country.  Thus, I am thankful for the opportunity to be pursue my passion and start a business.

I appreciate the support and encouragement of my family.  Without it I would never have had the courage to make the leap.

Other small businesses in the community should be celebrated!  I am thankful for the great retail stores, coffee shops, restaurants, and services in the area.  These are the hang out spots, the people we refer to our friends and the hidden jewels in our neighborhoods.  Thank you for enriching our communities!

And I am thankful for every experience, good and bad, that I have had on this journey.  My road to entrepreneurship has been fraught with challenges, or as I affectionately call them, learning experiences.  And I am grateful for each and everyone.

What are you grateful for this year?

Happy Thanksgiving!

Pathfinder Strategies wants to help YOUR Small Business

At Pathfinder Strategies we aim to nurture and grow small businesses in Southern Arizona.  Our customized solutions include Training & Development paths, technology streamlining paths and digital marketing paths.  Contact brandy@pathfinder-strategies.com to begin YOUR path to success!