A lot can happen in a year. You might smash the goals you’ve set in January with months to spare or you might decide to change direction completely. I’ve always resonated with the notion that “you’re not a tree – you don’t have to stand still.” It can be uncomfortable to go through change. I for one, am not someone who typically gravitates towards change, despite looking like I’m breezing through life from the outside. I find it difficult to navigate the BIG stuff both mentally and emotionally, which is why 2021 was such an interesting, challenging, chaotic, rewarding year – all in all, it was a giant rollercoaster.
Any business owner and entrepreneur will tell you the first year in biz can be one that breaks or makes you. Once the novelty of self-employment, flexibility, working from home (if that’s the nature of your business) and the overall buzz that comes with leading your own path wears off, you can be left with a whole bunch of other emotions and feelings you perhaps weren’t expecting. Worry, anxiety, dread, loneliness, self-doubt etc. It’s a LOT to navigate and once you’ve weathered the storm (and I’m sure there is bound to be more), you’re left with some pretty cool insights and learnings.
For me? I can summarise them into the below seven key areas. Things to lean into and others you might want to avoid. These are unique to my situation and business, but they might just help you too if you’re at the beginning stages of embarking on business ownership, or maybe you’re in the thick of the storm.
Let’s go!
1. Not every potential client is *your* client.
At the beginning of Recess Digital, I got caught in the trap of saying yes to EVERYTHING, even if it didn’t light me up. Of course, initially this was driven largely by financial obligations and goals – I wanted some runs on the board, some money in the bank and I also wanted to prove to myself that I could do this – challenge achieved! In hindsight though, the downside to this was that I had to navigate some really difficult, emotionally draining and resource-taxing situations. While most of my clients were amazing and the experience working together was positive, there was a small number that left me doubting myself, my abilities, my pricing and basically in the end, my morals – yikes! The learning? If it doesn’t feel right, it’s not.
I can look back now and CLEARLY see the red flags in each situation, which in turn has really helped me to vet potential jobs and clients.
Want to know what the red flags look like? Well, for me it was:
- Constantly haggling on price
- Lack of respect for professional boundaries e.g., emailing, messaging on weekends, expecting immediate responses etc.
- When you get the ‘ick’. This is hard to articulate, but basically can be summarised as an uneasy feeling after receiving an enquiry or meeting a potential client – you just know it’s not right.
- Super tight (and unrealistic) timelines. Those clients who *NEED* the job completed immediately.
- Wild expectations when it comes to results e.g., expecting 10,000 new Instagram followers in the first month.
2. Boundaries aren’t optional – they’re essential
Boundaries. On paper they make so much sense, but I personally really struggle with the implementation and follow through of setting work related boundaries. This isn’t just with clients, but with myself. In the first few months, I worked a silly amount from the wee hours in the morning, until the darkness of night, often without taking breaks. While deadlines sometimes require big hours, working in this pattern consistently left me in absolute tatters – insomnia, fatigue, burn out and so on. It meant that I had no down time for myself to recharge, and no time to spend with my friends and family. Two things I find critical to my creativity and happiness.
One of the biggest perks (if not the biggest) of being a business owner is the flexibility – you can set the pace, but if you’re not careful your business will set the pace for you and it’s often unsustainable and unrealistic.
Take the breaks. Schedule in the downtime. Your mental health and business will thank you in the long run.
3. Be your own cheerleader
If you’re embarking on biz ownership you must get really comfy with the fact that sometimes, the days are long and often, they are bloody lonely. You’ve got to be ok with your own company, especially while in the initial phases. And even if you do have contractors or employees, chances are you will still feel the weight and loneliness of steering the ship.
You need to back yourself. You need the confidence to say yes (and no) and you need to show up when things are tough because you don’t have the luxury of the comradery that comes with a team environment.
4. Arm yourself with a team of professionals
I want to preface this by saying, I’m all for DIY. When you’re starting a business it’s important for you to understand all facets of the operation, from finance, to product, services, marketing, client management etc. Without that initial exposure, you can find yourself heavily reliant on your team and lacking the knowledge to make important decisions. BUT I will say that there are certain areas of your business where you absolutely need to call in the professionals.
For me, the most important is solid, strategic, and accurate advice from an accountant you gel with and trust. Discuss your goals and vision for the future and ensure that your business structure is set up correctly from the onset. Get an understanding of whether you need to register for GST. Will you need an accounting program such as Xero or MYOB? How does business tax work? Who will do your BAS? These are all questions you can ask them and trust me, spending the money upfront and investing in their expertise will absolutely save you in the long run and avoid any nasty surprises from the tax office. They can also check in on your progress and help you navigate your profit and loss statements as well as forecasting for the future.
Another professional I couldn’t live without is a business coach and mentor. Yes, this is a bit of a luxury but without someone to keep me accountable to myself and act as a sounding board for ideas, issues and concerns I wouldn’t have been able to do the last 12 months. As soon as you can afford it, I’d recommend finding someone to work with closely who understands you and your vision.
5. Pay yourself – ASAP (and don’t forget your super!)
This might also be perceived as a ‘luxury’ but hear me out. When I started working with my business coach and mentor, she scalded me for not paying myself. My business was making money, but I was too scared to spend any, crippled by the fear it might all dry up tomorrow. She drummed into me that until you’re paying yourself (even a modest wage) you won’t fully appreciate what you’ve built. And by not enjoying the fruits of your labour, it can literally feel like you are working for free and that’s where the resentment kicks in. Paying yourself also makes you accountable. It makes you take yourself and your business seriously. It also means you need to show up to ensure the cash is still flowing.
And a little tip – when you do reward yourself with that first pay check, buy something fun to mark the occasion because you bloody deserve it!
6. Prepare to evolve, both personally and professionally
As I’ve previously mentioned, change is inevitable, especially in business, which is why you need to be prepared to shift when the time comes. It can feel really daunting when the business you dreamt up, starts to evolve into something different but it’s also really exciting – it means you’re learning, and things are improving! Sometimes what we initially thought was our vision changes and the services or products we put into the universe just don’t light us up. It is 100% ok to evolve and move towards the light.
For me, that’s meant simplifying my offering. Pulling it back to what I love to do, where I feel I add the most value and dropping the services that cause me the most headaches (and often the least amount of revenue).
Personally, you will also experience significant changes. You might find you become more resilient or perhaps your resilience will take a knock and you find a strong support network to get you through. Moral of the story? Don’t resist. It’s all part of the experience.
7. Done is better than 100% perfect
Hands up if you’re a recovering perfectionist. I certainly am. Looking back on my corporate career, I can’t help but shake my head at the hundreds of times I binned an idea, concept, or campaign because it wasn’t 100% ready or perfect. Creative work needs to be shared and waiting for every single element to be on point will only slow you down.
When you own a business, the reality is you can’t spend months or years perfecting every single element before launch. Invest the time into your brand, website, offering etc., but don’t obsess over nailing it because while you’re doing that, your competitors are out there showing up, swooping in, and landing your potential clients.
Just get out there and start. The truth is, if you’re not a little embarrassed by what you’re putting out there then you’ve left it too late to launch. Put your blinkers on if you fear the judgement, but remember most people are too busy focusing on themselves to worry about what you’re doing!
There you have it, my seven biggest lessons of year one in business! I’d love to chat more with you if you’ve got any other big ah-ha moments from your own experience. Let me know which ones resonated with you.
