I am a big believer in building sustainable businesses. Not just the ones that are good for the planet, but sustainable in the sense that the business will survive in years to come. Because what I see happening too much, is people jumping into entrepreneurship….only to discover that it is harder than they thought, and then they run out of money. We don’t want that happening. When you finally feel brave enough to start your own business, the last thing we want to see is that you throw in the towel after a year. This post is about why it is important not to JUMP into business, but rather EASE INTO IT – and how to actually do that.
You are not a failure for having a side job
First I would like to bust a myth: you are not a failure if you work in a coffee shop alongside being an entrepreneur. You got to pay the f*cking bills. Running your own creative business, or any business, is not an easy ride or a quick win. Most business owners still have a (parttime, or even fulltime) job, especially in the first few years, and sometimes much longer. There is NOTHING WRONG WITH THAT.
When you decide it’s time to start your own business, the most important thing is to have a plan. How will you sustain yourself? To expect that clients will miraculously fall our of the sky as soon as you post your offer on Instagram is very naive.
Without a plan, you’re doomed.
And there are a few different plans to make:
1. A financial plan:
– How will you sustain yourself in the first 12 months of running the business?
– The first 2 years? And what is your vision once you have hit the 5-year mark?
– What is your job exit strategy? And if you have already left your job, who will make sure the rent or mortgage is paid each month?
2. A marketing plan:
– Who is your ideal client?
– What is the solution you offer, and to what problem?
– What are your main offers, and what are your prices?
– What is your message, or elevator pitch?
– What is your strategy to attract sales?
What’s your long-term strategy?
Jumping full-time into a new business without a financial backup plan is a very bad strategy. Burning all your bridges and believing that you will somehow figure out how to make things work, is an even worse strategy. 50% of new businesses stop trading in the first 5 years of business, often much sooner. It is for exactly those reasons. No plan, no vision.
Many excited new business owners also often have no clue about how to get customers. They are experts at what they do and sell, but they naively thought that just by opening the doors of their business, people would start buying. Nope, it doesn’t work like that.
This is the harsh reality, but one that is all too common.
And then what happens? They start to discount their offers, and frantically post on social media to absolutely everyone (not knowing who their target audience is). It doesn’t work.
And then the money runs out.
The motivation stops. And the will to continue. It is such a shame, because at the core of it all, their business idea is probably brilliant! They stop believing in their success, and wrongly think they are “just not good at business”. Worst case scenario? They pack it all in, and go back to a 9-5.
Jump into business…or ease into business?
So what is the answer? Easing into business. Yes, I get it, you hate your job, and you are dying to be your own boss and have the freedom you are yearning for. But please be aware that without a realistic idea of how you are going to make it work, you may end up more stressed out than you were when you were still in employment. A paycheck at the end of the month is like a warm blanket compared to the periods of feast and especially famine you will experience as an entrepreneur.
If you are in a partnership or marriage, agree with your partner how this is going to work financially. Don’t make false promises saying you will earn as much or more as in your old job, within a year. Because 9 out of 10 times, this is not going to be true. If it does, amazing, but it may not. The last thing you need, is the pressure of your loved one on top of a failing business.
But…is it worth running your own business?
Oh, absolutely! I would not want it any other way! And you are completely and utterly capable, my friend. If I can be my own boss and earn money from my business, so can you. But I learnt from the past, and I once had a business that was doomed to fail (a vintage furniture store).
Why? Because I jumped into it without a clue. I burnt myself out, tried to do everything alone, never asked for help let alone invested in myself, and worked all hours of the week. I barely covered the business expenses. On top of that, I had my husband questioning my priorities, as we also had two very young children, and I was exhausted working on my business.
The main lesson? Had I made a proper plan for myself, and hired more support, it would have been way more successful. But I was unwilling to take any financial risk, worked on a shoestring budget, felt I couldn’t justify the money to my already frowning partner. But that way it was never going to grow out of the ‘side hustle’ phase.
I did not make a long-term plan. There was no solid marketing strategy. I did not hire support.
The solution to make you win at doing business
This is what I want to avoid happening to you. Think about how you will pay the bills while launching your business. Ease into business. Either hold onto that (part-time) job, get a side job, or agree with your partner a period where they will step up and support you building your new income.
Deeply understand your clients and customers, and how you can connect to them. Create a strategy to market your products in the right places. And then BE CONSISTENT AND PERSISTENT.
It’s cliché, but running a business is a marathon and not a race.
Being realistic, but focused and persistent, will be your superpower. And if you have a game plan and a strategy, you WILL succeed. I promise.
Call me if you need help on your journey. I work with coaches, online course providers, art related services and many more types of creative entrepreneurs. Let’s work together.
