5 Mistakes to Avoid When Starting Your Business This Year

Five (5)  Mistakes to Avoid When Starting Your Own Business This Year 

Five (5)  Mistakes to Avoid When Starting Your Own Business This Year 

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I was like most business owners when I started this blogging business, I didn’t have a clue what I was doing. Like most people with an entrepreneurial spirit, I learned on the job, piecing together what I could as I went along. Through years of hard lessons and a good dose of not knowing when to quit, my business has grown astronomically since then.

But looking back, if I could start all over again, there are things I’d do differently. If you’re starting out on your own entrepreneurial journey, avoid these five mistakes.

1. Letting Yourself Be Led By Fear

When I first opened my salon, I rented out booths to stylists because I didn’t want the hassle of employees, taxes and payroll. But the business grew to the point that I had to hire an assistant anyway because I could no longer handle everything alone. With the help of my CPA, I figured out payroll and taxes, which really weren’t that hard once I got the hang of it. All that stuff I had been afraid of turned out not to be so difficult after all. I just had to jump in and figure it out.

When my assistant transitioned into being a stylist, she was my first commissioned employee instead of a contractor. I realized that commissioned stylists were more profitable than having booth rentals. 

The employee model is so much more profitable. If I had had the courage to hire employees right away, Urban Betty would have grown so much faster. I hate to think back to the growth I missed by being afraid.

Takeaway: You know more than you think, and you can figure the rest out. Go for those big ideas instead of staying in the shallow end because it seems safer. Big fish live in deeper waters.

2. Being Uncomfortable with Bad Reviews

When we got our first bad review 18 years ago, I cried half the night. People don’t realize how heart-wrenching harsh words can be to a business owner (especially a new one) who has poured their time, energy and soul into a business. If you ever find yourself in a position to leave a bad review, please do it with kindness as well as honesty.

I’ve realized two things now that make negative reviews a lot less disheartening.

The first one is the more customers you have, the lower your ratio of bad reviews. It’s a lot easier to stomach one bad review in a sea of 100 great ones now that our business has a long history and exponentially more customers.

Also, bad reviews can shine a light on cracks in your business. Business owners can’t be with their employees all the time, so negative reviews can reveal where your business is faltering so you can improve.

Takeaway: Don’t let bad reviews get you down. Realize that it’s a numbers game, and sometimes good advice comes from bad reviews.

3. Waiting To Hire A Business Coach

If someone had told me I needed to hire a business coach when I first started out, I would have said, “With what money?” Starting out is expensive, and hiring a business coach seemed like a luxury I could go without.

Five years after I opened, we moved into a larger space with more stylists and more clients, but somehow, I was consistently $8,000 short every month. It was terrifying, and I didn’t know what had gone wrong. I realized if I didn’t do something, we were going to close. So I brought on a consulting group and business coach who restructured our price menu, which added a positive $50,000 in our bank account in a month. We’ve been with them for 10 years now, and they are constantly finding ways to make my business even better.

Takeaway: Hire the help you need, even if you think you can’t afford it. You can’t afford not to.

4. Trying To Grow Without A Financial Cushion.

The only way I’ve been able to grow my business is to take on debt because I don’t have investors. When I couldn’t get a loan at a big bank, I found a local nonprofit that only lends to minority- and women-owned businesses. I borrowed money from my grandpa. I borrowed money from my family. Was it comfortable? No. But without a financial cushion, it’s what I had to do to survive.

Takeaway: You need money to make money. If you don’t have it in savings, make sure you can get it from someone if you need it.

5. Being Unprepared For The Strain On Your Relationships.

I opened my business is 2005, and my first marriage fell apart in 2008. Did my business kill my marriage? No. But it did bring the lack of support from my partner into painfully sharp focus. Opening a business will shine a light on what’s right and wrong in the meaningful relationships in your life: romantic, platonic, familial and professional. You’ll see, perhaps for the first time in your life, who is really there for you.

Takeaway: Starting a business is going to take up all your time, and the people around you are probably not going to understand. Help ease the transition by preparing them ahead of time so they’re not resentful for being on the back burner for a while. In the long run, you’ll have more time for your loved ones once your business is running itself.

My Hard Lessons Are Your Smart Start

Entrepreneurship is one of the most rewarding journeys I have ever been on, and though people say “I wouldn’t change a thing,” I would! If you’re on the precipice of starting a business, especially for the first time, I hope you can use my mistakes to cut an easier path for yourself.

A Man Who Truly Loves You Will Never Say These 5 Things To You

If someone had told me I needed to hire a business coach when I first started out, I would have said, “With what money?” Starting out is expensive, and hiring a business coach seemed like a luxury I could go without.

Five years after I opened, we moved into a larger space with more stylists and more clients, but somehow, I was consistently $8,000 short every month. It was terrifying, and I didn’t know what had gone wrong. I realized if I didn’t do something, we were going to close. So I brought on a consulting group and business coach who restructured our price menu, which added a positive $50,000 in our bank account in a month. We’ve been with them for 10 years now, and they are constantly finding ways to make my business even better.

Takeaway: Hire the help you need, even if you think you can’t afford it. You can’t afford not to.

4. Trying To Grow Without A Financial Cushion

The only way I’ve been able to grow my business is to take on debt, because I don’t have investors. When I couldn’t get a loan at a big bank, I found a local nonprofit that only lends to minority and women-owned businesses. I borrowed money from my grandpa. I borrowed money from my family. Was it comfortable? No. But without a financial cushion, it’s what I had to do to survive in my business growth journey.

Takeaway: You need money to make money. If you don’t have it in savings, make sure you can get it from someone if you need it.

5. Being Unprepared For The Strain On Your Relationships.

I started my business is 2005, and my first marriage fell apart in 2008. Did my business kill my marriage? No. But it did bring the lack of support from my partner into painfully sharp focus. Opening a business will shine a light on what’s right and wrong in the meaningful relationships in your life: romantic, platonic, familial and professional. You’ll see, perhaps for the first time in your life, who is really there for you.

Takeaway: Starting a business is going to take up all your time, and the people around you are probably not going to understand. Help ease the transition by preparing them ahead of time so they’re not resentful for being on the back burner for a while. In the long run, you’ll have more time for your loved ones once your business is running itself.

My Hard Lessons Are Your Smart Start

Entrepreneurship is one of the most rewarding journeys I have ever been on, and though people say “I wouldn’t change a thing,” I would! If you’re on the precipice of starting a business, especially for the first time, I hope you can use my mistakes to cut an easier path for yourself.

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