Starting a business can be very exciting. You know, the thought of having to build your own vision, not having to work for something you’re not exactly passionate about, and finally doing that thing you’ve always dreamt of doing. However, it can also be very scary too, and you often find business owners navigating between excitement and fear; the fear of the unknown, the fear of where the money or capital will come from, the fear of getting it wrong, and the fear of wondering, “What if this doesn’t work?”
James, in this new podcast episode, shared some lessons with business owners to help them understand and forge through the different seasons of their business, especially those seasons where things don’t quite go according to plan.
Here are some of the key lessons he shared.
Don’t be afraid of failure
First, James helped us understand that as a business owner, you shouldn’t be afraid of failure. Failure is something he said he has experienced several times, such that he has even developed it as an acronym to mean First Attempt In Learning.
Now, as a business owner, it is very important to have this shift in perspective; seeing failure as an attempt at learning rather than a reflection of your efforts or abilities. It helps you not to be held back by the fear of failure, and it also helps you move past the limiting belief that failing at something means you are not good at it, or that you are not good enough to run your business.
Failure is a learning moment.
It helps you gather information about a particular experience or situation; it helps you understand what the market needs, what your systems can or cannot handle, what needs to change, and how prepared you really are to face challenges.
So, as a business owner, it is important to move past the fear of failure and embrace it as a learning opportunity. This mindset shift is very important because it entirely changes how you approach your business; instead of seeing every setback as proof that something isn’t working, you begin to see it as feedback that can help you make better decisions.
Growth often exists outside your comfort zone
Now, on to the second point. James mentioned that growth as a business owner often exists outside of your comfort zone.
If you find that you’ve become very comfortable in your business and you’re no longer motivated to push, you’re not trying to move beyond what you’ve become comfortable with knowing, it may be a sign that you need to leave your comfort zone.
Now, this doesn’t mean constantly putting yourself or your business at risk. Instead, it means doing the things required for your business to grow beyond its current level, no matter how difficult or uncomfortable they may seem.
Your willingness to put your foot forward, your willingness to take that scary step that could potentially push your business ahead, even when you’re not completely sure of the outcome, can bring about more growth for your business than choosing to remain in familiar or comfortable territory.
This could include having nervous conversations with investors, putting yourself out there through social media, speaking to potential customers who might say no, or making decisions without having 100% certainty that they will work.
This is particularly important for new entrepreneurs to understand because the early stages of business will require you to stretch, and sometimes, stretch uncomfortably. You will have to learn things you did not know about your niche, learn to say no to certain things, deal with rejection, and make decisions even when you don’t have all the answers; it’s all a part of the journey.
Conduct your market research before launching
The third thing James shared with business owners is the importance of conducting market research.
As a business owner, sometimes you love your product or service so much that you fail to see things from the perspective of your target customer or audience. You know how much work you’ve put into creating it, you know why you love it, and you may even believe that everyone else should love it too.
But your customers may see it differently.
Before you launch a business, you need to understand the market you’re entering. Who else is already doing what you want to do? What are they doing well? Where are the gaps? What are customers complaining about? What do they wish these businesses were doing differently?
And perhaps just as importantly, who could you collaborate with instead of competing with?
You don’t want to spend months building a product or service only to discover that you don’t really understand the people you’re trying to sell to. You need to know who your ideal customer is, what they need, what they are willing to pay for, what problem they are trying to solve, and why they would choose you instead of the other options available to them.
Your business plan is more than a document for a loan
Another point James shared with business owners is that a business plan is beyond a document prepared to apply for a loan or a grant.
A business plan is literally a plan for your business; it is something that helps you understand your business better so you can assess it clearly, question certain approaches, change what isn’t working, and clearly identify what you need to work towards at every point in your business journey.
And this is why writing things down matters.
When things are going well, you can look back and see what is working; when things aren’t going so well, you have somewhere to measure against when you’re trying to figure out what went wrong.
A business plan doesn’t mean you have to predict everything that will happen in your business because, honestly, you can’t. Things will change. Your customers will change. The market will change. You may even change your mind about some aspects of the business as you grow.
However, having a plan gives you a sense of direction, so you know when you’re veering off course and when you’re still on point..
Build your credit before you need it
The last point James shared with business owners, which is also a very practical one, is that of building your credit.
Given James’ background in banking, this is also some useful financial information for business owners to pay attention to.
James explained that a business line of credit can give you access to funds when your cash flow gets tight, and if you’ve been in business for any length of time, you already know that cash flow can get tight sometimes.
A client might pay later than expected, an unexpected bill might come up, or you might have a slow month at exactly the same time that several expenses are due.
Having access to credit can give you some breathing room instead of forcing you to make financial decisions under pressure.
And here’s the important part; it is recommended that you secure that line of credit before you actually need it.
When your business is doing well and your finances look healthy, you’re in a much better position to have that conversation with a bank than you are when you’re already struggling with cash flow and urgently looking for money.
You may never need to use the credit, but having it available can give you an extra layer of financial security when things don’t go exactly as planned.
Your mindset is the foundation
In conclusion, business owners are encouraged to develop the one asset that is the foundation for every other thing listed above; your mindset.
Your mindset determines the field you play in; it determines how you react to failure, setbacks and success, and it determines how well you’re able to look at difficult situations, learn from them and find a way to turn them in your favour.
You can have a business plan, conduct the market research, build your credit and have a great product or service, but you also need the right mindset to keep you going when things get difficult.
If you’ve just started a business or you’re already in the thick of growing one, you need to listen to the full episode of this podcast, as well as the other episodes shared earlier. Listen here.
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