What I learned in my first year of business – Part One
15 July 2020
I set up my business a year ago this month. It has not always been easy to stay motivated, and at home, you can get distracted by all sorts of things. Here are a few things I have learned over the last 12 months. Caveat: I have a partner who is employed and no children. Starting your own business when you are single or have children will come with challenges I have not had to worry about.
I have learned a lot over the last 12 months from getting things right and from making mistakes. I've jotted down a few of the things I learnt. This is part one – you can find part two here.
Getting started:
Before you do anything, work on a business plan. Plan for change, too, though. Obviously, 2020 is an extreme example, but things rarely go entirely to plan. I've found amending my plans quarterly was about right before lockdown – I need to do it monthly right now.
However long you think it will take to get going and start making the turnover, you know you can – it will take longer. Every business owner I have spoken to has said the same thing, so make sure that you have the funds set aside to run your business for some time before the money starts coming in.
Make the best use of any resources out there to help new businesses. This includes other business owners – especially those in the same field. If you're in professional services, chances are they're not going to be a direct competitor anyway. You'll be amazed at how lovely and helpful people are. You can find out what the going rate is, their experience, about how long it took to get going. I've spoken to some fantastic people that helped me out when I first started, and that information was invaluable. I'm still friends with them today.
If you are in Scotland, Business Gateway is there to help with free workshops and advice. The FSB is also great, with free legal advice for members and lots of contract templates, and membership is very reasonable.
Also, do your own research and learning: there are also many great books and online courses, some of them free.
Self-reliance
Although it's hard work, I've found that working for myself is less stressful than being in the corporate world. Being in charge of your own destiny is liberating. I can't imagine working as an employee again. You need to be disciplined and set business hours. However, it's great that I can be flexible. If I fancy taking Friday off, I can always decide to spend a few hours over the weekend catching up. Or I can decide one day works better for me if I start at 10 and finish at seven. For me, this also helps with the stress of work life. Being self-employed, work can work around my life rather than the other way around.
Being self-reliant is not easy though, and it's tempting to get behind with the boring bits. For example, keeping up with your accounts. You don't have to submit them until the 31st of January after your first financial year, so it's tempting to just put it aside and forget about it. At one point, I ended up doing nine months-worth of accounts in one go. It was an absolute pain and took forever. Now it takes me an hour or so per month to reconcile my bank account and record all my receipts.
Staying focussed
Most office-based workers have been working from home this year, but it's a different beast if you are self-employed. It is so much easier to get distracted if you aren't being given tasks by a manager and you have no one to answer to but yourself. It is OK to take advantage of working from home to get a few extra chores done. I often set the washing machine going before I start and stick it out on the line or in the tumble dryer at lunch. BUT - I stick to things that don't interfere with my schedule and don't affect my work. It just leaves me with more free time at the weekend.
Live by your calendar, use it to set your business hours and any meetings you have. I also find it useful for specific tasks to block out time in the diary. I find this especially useful for making sure that I get work done for my business as well as getting work done for clients. I'm so much better at making sure I keep up with my client's work than I am my own. I think most business owners are like this. Because it's your clients' work that brings in the money. But you won't get any more clients if you don't get your work on your business done too.
Ideally, have a separate space for work. I find it really helps having my little office area that I only use for work. Once I'm sat down at my desk, I am at work and in the zone. If your home isn't big enough for that and you are easily distracted, consider finding office space when you can afford it (and once we are allowed out.
Getting out there
This will depend on what you do, but networking has been the most important communications tool to get my business off the ground. As my business grows, other marketing channels are starting to bear fruit, but most of my clients today have come through networking. If you are in professional services like me, I would recommend networking as much as possible.
Obviously, right now, networking is online rather than in person, but I have got so much business from doing this. It's not just about meeting potential clients; it's about meeting people you can work with collaboratively and people who will recommend you in the future. Most of the client I have from networking have come from referrals rather than someone I've met at a networking event.
The beauty of online networking is that you are not restricted to a geographical region; you can network nationally and even internationally right now. Although I have to admit, I'm really looking forward to getting back to face-to-face meetings as well. I believe the future is hybrid online and face-to-face networking.
Ensure that you keep on top of who you've met where, for example, using a CRM system and always follow up. If you've met with someone at a networking meeting, make sure to connect with them on LinkedIn or other social media if they're not there. And trying to arrange one to one catch-ups outside of networking meeting to find out how you can help each other.
That's not just for potential suppliers or potential clients. That goes for other people you meet too. Most people who network want to help each other, and you never know where it might lead.
For more of these gems check out part two here.
Thinking about setting up your own business and want a chat with someone who has already been there? call me on 07791 521439 or email me at samantha@labrakita.co.uk