As a small business owner, you’re going to make mistakes in business. There’s no way around it. Some errors you may catch and correct right away. While other business mistakes you make repeatedly, unaware that they are costing you time and money. These prevent you from making progress and can be the root cause of unnecessary stress and overwhelm.
[Theresa] Oh boy! Have I got a doozy for you all today. I’ve been wanting to write this episode for quite some time. I’m talking like from the inception of this podcast.
I’ve procrastinated around this in the past for fear of upsetting fellow “preneurs”. But a lot has changed over the last three years. I’ve changed.
And I’m not willing to sit by anymore without saying something about three business mistakes I constantly see other business owners making.
When I see my colleagues engaging in these behaviors, it breaks my heart. Because I know that these actions, while well-intentioned, are costing them time and money.
And worse, these business mistakes prevent progress.
[Meghan] And, by the way, these mistakes that are on Theresa’s mind and that she needs to get off her chest. She and I have both made these same missteps in our businesses. Often, more than once. Sometimes we struggled for years before we realized it and took measures to correct it. So, there’s no judgment here.
[Theresa] The goal is to make you aware so that YOU can navigate past these challenges. Learn from our mistakes.
And as you listen, don’t fall into the comparison trap. Meghan and I have decades of experience between the two of us. Even though we’re both in different places in our own entrepreneurial journeys, she and I have figured a few things out, though we’re still learning.
Business Mistakes That Cost You Time and Money
[[Meghan] True! So, today we’re going to focus on three common business mistakes that business owners consistently make.
So, in the spirit of, “don’t do what we’ve done,” let’s dive in.
Lack of Clarity
[Theresa] Business mistake #1 is a lack of clarity. When you don’t have a clear understanding of what you’re trying to build in the first place, everything suffers.
[Meghan] When you lack clarity in your business, you are essentially operating in the dark. This leads to wasted time and money, as you may be marketing to the wrong audience or investing in areas that aren’t aligned with your goals.
Additionally, a lack of clarity can lead to indecision and hesitation, which can be fatal for your business. You may find yourself stuck in analysis paralysis, unable to make decisions or take action because you don’t have a clear direction.
[Theresa] Not being clear could lead you to build a business you never intended to build. This is what happened to me when I was a professional craft designer in the Craft and Hobby industry.
To keep a very long story short, I started in craft and hobby as an educator. Initially, it felt aligned with my passion, background, and training as a teacher. It provided the flexibility I needed as a young mother and wife. Plus, I loved the creative outlet.
But as my children became more independent and I gained more influence and authority in the industry, I followed the breadcrumbs laid out before me without paying attention.
I constantly pivoted. Therefore, because I wasn’t clear about what I WANTED to build, I ended up with two really great businesses that I resented and never wanted in the first place. And worse, I ended up in burnout.
All of that could have been avoided if I just had some clarity.
[Meghan] What Theresa is describing is an extreme case. The moral of the story is to get clear!
Signs of a Lack of Clarity
Here are some signals that you may be struggling with a lack of clarity in your business:
- Constantly changing course or pivoting
- Inability to clearly describe your product or service
- Unclear about your target audience
- Unclear vision
- Indecisiveness
- Lack of focus
- Inconsistent branding
- Insufficient growth
[Theresa] If you struggle with a lack of clarity when it comes to your business, your first step is to spend some time thinking about what you want to accomplish. You want to be as specific as possible so you can set the right goals. You can’t make progress if you don’t know what you’re progressing towards. So start there.
[Meghan] Don’t be afraid to visualize and daydream. Spend the time and make the effort to understand your why, who, and what. Listen to yourself. From there you can figure out your best first step and set appropriate goals.
Listening to Too Many People
[Theresa] Speaking of listening, the next business mistake is wasting your time and money listening to too many people.
While seeking advice and guidance from others can be helpful, listening to too much advice from too many sources can do more harm than good. It can lead to confusion and contradicting advice, making it difficult to make decisions.
[Meghan] Additionally, you may find yourself constantly changing course based on the latest advice you’ve received. This means you won’t make any real progress. I have done this far too many times than I care to admit!
[Theresa] It’s easy to fall into the information overload trap. I see it as a two-pronged issue.
Issue #1: The Internet
First, there’s the Internet. Google, social media, podcasts, blogs, YouTube videos — it’s never ending. And when you’re looking for a solution to a problem, it can appear that everyone has THE WAY to solve it.
[Meghan] But who do you listen to? It’s hard to know because there’s more than one route to your destination. Plus, you also have to discern who’s got good advice and who doesn’t. Then there’s the fact that there’s so much information on the Internet. You can kill your productivity with distractions and put your brain on overload. But, I digress!
[Theresa] I won’t get into my opinions here, but I will say this. When looking for the right mentors and coaches online, it’s a good idea to find someone who’s gone where you want to go.
For example, I started with a 1:1 coaching business, but I knew I wanted to create a course. So I began that journey with a Google search and random YouTube videos in an attempt to figure it out for myself.
But I didn’t launch a course for years…until I found the right person and program. Then I actually launched. But before that I wasted a lot of time and money to get absolutely nowhere.
Issue #2: Well-intentioned People
[Meghan] Which brings us to the second issue — well-intentioned humans.
It’s not unusual for business owners to brainstorm, mastermind, and share ideas with one another. This is supportive and not a bad thing. However, while your colleagues mean well, they may not be the right resource for you.
[Theresa] I’ve seen it happen time and time again. A business friend will be heading in one direction. They have a chat with another entrepreneur and change their focus and direction. Then a month later, they’re doing something else based on advice from yet another person.
This is something I’ve done myself. Remember, I ended up with two businesses I didn’t even want, in part, because I followed the advice of too many people.
[Meghan] Exactly! Keep in mind that no two businesses are alike. So, not everyone’s advice will be relevant for you and your unique situation.
You’re much better off finding one trustworthy person who understands you and your business goals. Ideally, someone who’ll really listen, be honest, and ask good questions.
[Theresa] Yes. Like Meghan and I. We are that for each other. When I’m stuck, she’s my go to. She’s been a sounding board for me many times.
[Meghan] While it’s good to have that go-to person who is your sounding board, you also need to trust your own judgment. And, accept that you’re going to make mistakes. Be ok with that.
Mistakes are a really effective teacher! Look, having a business can sometimes be really difficult and frustrating. But, mistakes will teach you valuable, memorable lessons and give you more confidence in yourself.
Free Solutions
[Theresa] Alright, the final business mistake wasting your time and money is free solutions.
[Meghan] Look, there is a lot of amazing, helpful free content out there that can support you. You’ve heard us talk about free options because sometimes free is a necessity. But often what happens is that free solutions turn into a crutch or a bandaid that harm your progress.
[Theresa] That’s right. The mistake comes in when you only seek out free solutions. You think, “Why should I pay for something I can find for free online?”
The problem there is that those free solutions only just scratch the surface. They are a small snapshot of the bigger picture. Which means they’ll only carry you so far.
This is the problem I ran into when I was attempting to use free solutions to launch my first course. I was missing critical pieces that prevented me from making any real progress.
For example, I got as far as coming up with my course idea and creating slide decks, but the rest was missing. Important things like how to find the right learning management tool, collect payments, and get it in the hands of consumers.
Use Free Solutions to Find the Right Paid Solutions
[Meghan] Right. What free solutions CAN do for you, though, is help you to determine what paid solutions are right for you.
[Theresa] Yes. It was in my quest for good free solutions that I found Laura Philips of Let’s Launch Together. I invested in her program which helped me see the full picture, and I was finally able to launch.
In other words, I spent money.
[Meghan] Investing in your knowledge, someone else’s proven process, and even in certain online tools is a necessary component of operating a business.
That investment may save you time or cost you time, but occasionally you’re going to need to invest the dollars! Because you often have to spend money to make money. There’s a reason that is a saying, you know?!
[Theresa] Of course, we’re not saying to be fiscally irresponsible, mind you. For example, I was in a year-long coaching program several years ago and knew someone who applied for credit cards to pay for it. This was a five-figure program!
That individual got overwhelmed and stopped showing up. In the end, all they had to show for it was credit card debt.
So, definitely don’t do that!
[Meghan] Yikes! Some people will advise you to go into debt to make your dreams come true. But deep debt often comes at a cost that is beyond financial, if you know what I mean. Our advice isn’t to spend money that you don’t have.
Instead, use free solutions to get you started and to identify the right paid programs and coaches. Those investments will help you make better, faster progress and keep your momentum going!
Business Mistakes are Part of the Entrepreneurial Journey
[Theresa] As we wrap up this episode, we want to remind you that everyone makes mistakes, and that’s okay. It’s part of the entrepreneurial journey.
What’s important is recognizing those mistakes, learning from them, and taking steps to correct them.
Don’t beat yourself up if you’re making one or more of these business mistakes. Embrace them as opportunities for growth, and use them to refine your business strategies.
[Meghan] As we like to say, business is filled with messy moments. Ride those waves when you hit them and keep moving forward.
Continue to seek out reliable sources of advice, trust your instincts, and invest wisely in your business. With time, patience, and perseverance, you’ll become a more confident and capable business owner, ready to tackle whatever challenges come your way.
[Theresa] Thanks for joining us today. We hope that by sharing our experiences, we’ve helped you identify areas of improvement in your own business.
We believe in you, and we’re here to support you every step of the way.
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