Things I Wish I Knew
About Starting a Business
Running a small business is an exciting and challenging journey filled with countless opportunities for growth and learning. As business owners themselves, Breakaway advisors love coming alongside their clients on that journey! Each advisor has a handful of their own “I wish I had known…” about starting their own business, and after working with hundreds of SMB clients we’ve heard it all. However, there are some things we seem to hear again and again–lessons to make the path smoother and more joyful.
If you're in the weeds of starting (or revitalizing!) your own business, here are some insights to help you avoid common pitfalls and set yourself up for success:
1. The Importance of a Clear Vision + Detailed Business Plan
When starting a business, many entrepreneurs have a general idea of what they want to achieve but lack a clear, long-term vision. They quickly realize having a detailed vision is crucial. It’s not just about knowing what you want to do, but also understanding why you want to do it, who you want to serve, and how you plan to stand out from the competition. This vision becomes your North Star, guiding your decisions and helping you stay focused when challenges arise.
Then, keep your vision in mind when creating a detailed business plan, which should include your business goals, target market, competitive analysis, marketing strategy, and financial projections. This plan will not only guide you but also help you secure funding if needed. It’s smart to involve a financial professional during this very first step to help make sure your cost and revenue projections are sound and achievable.
2. The Need for Flexibility and Adaptability
Business plans are important, but we all quickly learn they rarely go exactly as planned. The market changes, customer needs evolve, and unexpected challenges arise. Flexibility is key to survival and growth in the business world. Don’t be afraid to adjust your strategies, explore new opportunities, or even change your business model if necessary. And remember, making sure you always have a clear picture of your business’ financial situation is critical for making informed decisions about when and how to pivot.
3. How Crucial Cash Flow Management Is
One of the biggest surprises for many owners is just how critical cash flow management is to the survival of a business. Many don’t know at first that profitability doesn’t always mean positive cash flow, and that a profitable business can still struggle to pay its bills if cash isn’t managed properly. Understanding cash flow cycles, anticipating expenses, and maintaining a cash reserve are essential to keeping your business afloat, especially in the early stages.
4. The Reality of Wearing Many Hats
As a small business owner, you’re not just the CEO—you’re also the COO, marketer, customer service representative, and more. We wish new owners fully understood the reality of wearing so many hats and the toll it can take on your time and energy. While it’s important to be involved in all aspects of your business, it’s equally important to recognize when it’s time to delegate or outsource certain tasks. This allows you to focus on what you do best and avoid spreading yourself too thin.
5. The Significance of Legal and Regulatory Compliance
Most execs know that legal and regulatory compliance is important, but might not realize just how complex it can be. From choosing the right business structure to employment laws, issuing 1099s, evolving regulations like the Corporate Transparency Act, etc., there are many legal aspects to consider. Seek professional advice early on to ensure that your business is compliant from the get-go, avoiding costly mistakes down the line.
6. The Realities of Work-Life Balance
Starting a small business is often glorified as the ultimate path to freedom, but the reality is that it can consume your life if you’re not careful. One client recently said “I wish I had known how challenging it would be to maintain a work-life balance.” In the beginning, it’s easy to justify long hours and missed personal time as necessary sacrifices for success. However, burnout is real, and it’s important to set boundaries and prioritize self-care from the start. Remember, your business won’t succeed if you’re too exhausted to lead it effectively.
7. The Power of Persistence and Patience
Finally, always remember that success doesn’t happen overnight. There will be days when progress feels slow, and it’s easy to get discouraged. But it’s important to stay committed to your goals, celebrate small wins, and keep pushing forward, even when the going gets tough. Remember, building a business is a marathon, not a sprint.
At Breakaway, we believe entrepreneurship should always go hand-in-hand with community. Work for yourself, not by yourself is true not just for our advisors, but for our clients too.
Visit breakawayba.com to learn more about partnering with a financial professional who is dedicated to providing solutions tailored to your business’s unique goals.
