5 lessons for new business owners

Posted on August 15, 2022 by Corbet Fawcett, One of Thousands of Business Coaches on Noomii.

Launching a new business can be one of the most exciting times in your life. It’s a bit like having a baby — you’re bringing something new into the world. This wonderful new thing depends on you, and every day brings new learning and challenges.

You could learn through trial and error, but there are a lot of challenges you can avoid. Here are five things I’ve learned along the way that I wish I’d known years ago.

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:: LESSON 1: JUST BECAUSE PEOPLE SAY IT’S EASY DOESN’T MEAN IT IS ::
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When you’re starting a new business, it can seem like everyone has advice for you. The advice comes in a torrent and can be difficult to navigate. I learned a lot in the first months of my coaching business, and that was great. But there was a dark side. If I had a quarter for every time someone told me “it’s easy, just do…”

Well, let’s just say I’d have all the funding I’d ever need.

Here’s the truth as I’ve experienced it: Everything in business is YMMV. Your experience will be different from others’. There’s no guaranteed formula for success. What’s easy for one person may be different for you.

Here’s a tip: Watch for the word “should.” When “should” creeps into your thoughts it can be a sign. You may be applying someone else’s experience in ways that don’t fit your own. “This should be easy” is a big one. What does it matter if someone else found it easy? If you’re not finding it easy then that’s all that matters. Your own experience will be unique. So as a new business owner enjoy all the free advice people will share, but let your own experience guide you.

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:: LESSON 2: KNOW YOUR WEAKNESSES ::
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I learned a truly valuable lesson with my first business:
A successful business recognizes and plans for weaknesses.

My weakness was bookkeeping. I knew enough to engage a professional at tax time, but my poor bookkeeping made taxes a nightmare. In some ways this made starting my next business easier. I knew I needed to dedicate time to bookkeeping. I knew it was worth hiring someone to help. I had lots of motivation to avoid those same tax-time headaches. Knowing my weakness let me plan to avoid issues.

As a business owner your weaknesses are your business’ weaknesses. They could be topics you have no training in, like marketing or finances. They could be areas you’re not comfortable with, like networking or sales. They could be habits that are working against you, or habits you haven’t created yet. Coaching can help identify weaknesses and plan around them. It’s the old adage — “an ounce of prevention is worth a pound of cure.”

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:: LESSON 3: SOMETIMES IT PAYS TO SPEND ::
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You’ve probably heard people say “You have to spend money to make money.” This is a lesson I’ve had to learn and relearn as a business owner.

Running a business can make you hyper-aware of where every dollar goes. When you’re starting out you’re probably spending more than you’re earning. In fact you may not be earning anything at all, so every dollar spent seems twice as valuable.

There’s also a tendency to do everything yourself. As a business owner you’re a talented, intelligent, and capable person. It just makes sense to save money by doing things yourself. Right?

Not necessarily. (We’re back to YMMV.)

As a business owner there is no limit to the number of things on your To Do list. But hours are limited. Where are they best spent?

And then there’s the question of quality. If you’re new to business you have probably just discovered lots of new skills you need to develop. That expertise takes time. Lack of expertise has hidden costs. It takes longer to get things done, and it may not be possible to do so with real quality.

For example I am not a graphic designer. I can create decent images with a hearty helping of YouTube tutorials, but it takes time. Far more time than a professional graphic designer would take. And the quality, while decent, is not at the same level. Plus, while I am taking all that time there are other things I’m not doing that would also benefit my business.

So, sometimes it pays to spend.

One of the harder things I’ve learned to do is to look at my “must do” items and ask myself this:

“What are the things that only I can do?”

Those things I do myself.

Looking at the rest, I tease out the few things that are truly a priority. I look at those for things that others can do better and faster, and that I can afford to outsource. Those are the things I pay others to do, at least for now.

So if you’re a new business owner, what are the things that only you can do? And if other things are eating up your time, what could you outsource to get more things done, quickly and well?

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:: LESSON 4: “STAY ON TARGET” ::
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One of my favourite lines from Star Wars comes from the climactic final battle.

What does this mean? In essence it means have a plan and stick to it.

Having a plan can be a game-changer for new businesses. Planning helps you prioritize. It helps you assess where things are working and where things aren’t. It helps you learn. It helps you spot and validate assumptions. It helps you celebrate small milestones, to stay motivated on the way to bigger ones. If you ever need business loans or funding, planning will be a core part of those conversations.

I’ve talked to many small business owners who don’t have a plan, and they’re never really sure how they’re doing.

Do you have a plan for your business?

There are many different forms of planning, appropriate at different stages. If you’re in the idea stage you might start with a business model canvas. If you have launched you might create yearly, quarterly, monthly, and weekly plans. I always recommend starting with yearly plans and working back. That helps you align your day-to-day with your long term goals.

Once you have your plan, you need to ‘stay on target.’

This means checking in with your business regularly. How are you tracking to your long-term plans? What time do you need to block off, to make progress? What resources do you need? What obstacles do you need tackle first?

I recommend checking in for 10 minutes once a week. Grab a coffee and take a look at your long term plan. What’s working? What do you need to prioritize to stay on target? That 10 minute coffee can restore focus, set you up for the coming week, and help you see your progress.

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:: LESSON 5: TAKE CARE OF YOUR MOST IMPORTANT ASSET ::
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Great tools are key assets, but tools need care. Imagine a chef who never sharpens their knives, or a taxi driver who doesn’t maintain their car. They can’t work without their tools. If they don’t maintain them they’ll be okay for a while, but not forever. Eventually the chef’s knives will stop cutting. The taxi driver’s car will need expensive repairs.

As a business owner, you are your most important asset.

New business owners often work around the clock. This is particularly true for side hustlers trying to run a business while holding down a full time job. The hours are long, the demands on your energy and attention are high, and there’s always something more to do.

Launching my second business, I typically worked 10+ hours a day, 7 days a week in the beginning. I loved the work so at first this didn’t feel like a problem. But eventually it caught up with me. Does that sound familiar?

The constant go, go, go can drive you into overwhelm and burnout.

Overwhelm can look like:

- Lack of focus — being easily distracted all of the time
- Lack of motivation — finding it difficult to get even important things done
- Lack of energy — perpetual fatigue
- Lack of joy — feeling like it’s all effort with no satisfaction

If this goes on for a long time, you may find it difficult to recover. Even a vacation may not be enough.

So what’s the fix? There’s no one sure way (YMMV!), but consider this:

If it makes sense to have a plan for your business, it also makes sense to have a plan to take care of your top business asset. You.

What if you schedule rest and recuperation the same way you schedule your ad campaigns? What if you plan ahead, and make these a part of business planning?

Don’t wait for your engine light to come on — schedule your maintenance.

If you were a chef you’d be sharpening your knives. What can you do to stay sharp?

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:: LAST THOUGHTS ::
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Starting a business is a lot like bringing a new life into the world. It’s exciting, it’s challenging, it’s rewarding, it’s demanding. To take some of the trial and error out of the process, remember these few things:

- Your personal experience will be unique.
- Know your weaknesses and plan to mitigate them.
- Sometimes it pays to spend.
- Have a plan and check in regularly.
- Take care of yourself.

If you need a thought partner for any of this, reach out. And above all, enjoy the process!