3 Mistakes from Small Business Owners
Our favorite small business owners on how making mistakes helped them build viable ventures of their own.
In a time of crisis, you might not initially think to start a business, but those scary moments can also turn out to be the main drivers of sizeable life changes. The pandemic comes top of mind for many, but other tough times can also provide that final nudge: take Passerby Janine Lee, for example. She started Floss Gloss in 2008, right in the midst of a recession following the financial crisis. Whether 2021 was the year you took the leap of courage or you have been at it for a while now, small business owners and Passerby have a message for you. They’ve been hard at work making mistakes and learning plenty in the process.
mistake #1: not documenting things properly
Let's start with a standout piece of advice that reverberated through the responses we received: put everything down in writing. Not doing so can be a big mistake, as learned by curator and writer Vere van Gool who initially relied on “verbal agreements.” Now, she aims to get all details into a contract, which you can think of as a supporting structure for your business. If things go wrong, documentation provides the pillars you can fall back on.
Understandably, guaranteeing everything is in writing may seem a little too official in some situations, especially if you are dealing with clients who double as friends or acquaintances. Drafting an unsexy document may seem like the last thing you want to do to close an exciting business partnership or a collaboration. However, there are plenty of ways to make creating a paper trail less daunting. A simple example is ensuring you always note what's discussed verbally in meetings and email a record of these details to the other participants. Strive to get a written response from them, too, confirming what you agreed on. That way, if memories get hazy or negotiations sour, you have something to refer to. If the other party is reluctant, you can always remind them that having proper documentation protects them as much as it covers you. To sum it up, as Janine puts it, “document everything.”
Once you have the documents in place, it's essential to keep them organized for easy future reference. Ceramicist Shino Takeda recalls that one of the first mistakes she made running her own business was shipping an order to the wrong address. If keeping everything in order seems overwhelming, we've got you: our guide on the best ways to get and stay organized includes both analog and digital options to suit your preferences.
mistake #2: not having boundaries
Boundaries can exist in myriad forms when you're a small business owner. The women we interviewed speak candidly about how they have learned to enforce firmer boundaries—whether to preserve themselves from burning out, protect their business' integrity, or keep loyal customers. And remember, "Establish your limits and boundaries before the pressure is on," as jeweler Laura Lombardi advises.
Thinking that you never need any help is the fastest way to burn out. Indie perfume company D.S. & Durga owner Kavi Moltz says that she used to keenly take on too much of the creative work in her projects' early stages, which resulted in her “being a bottleneck” in the company's production. As a result, she started paying more attention to working with others: “I would take more time to delegate and collaborate with my team, rather than taking things on all by myself!”
Certainly, you can't please everyone. Trying to do that is not only impossible but, again, leads to burnout. This is where boundaries also play a significant role. What can predicate a small business' success is that it caters to a niche need, interest, or type of customer. In other words, it's helpful defining your audience and client base and putting boundaries around these markers. Shino remarked that for her, it was important to “pick the right clients.” That way, she could develop friendships with fellow shop owners who carry her ceramics and build a community, securing a life where she enjoys all elements of her work.
And then, there are the boundaries that exist to hold your business together and ensure that customers return. Janine recalls sending an email to one of her first customers explaining why an order was late. She advises you to keep back office stuff like this to yourself. What's most important to a customer is not why there's a problem but how you will solve it.
mistake #3: not knowing your worth
If someone is courageous enough to set up their own business, how come they could still struggle with impostor syndrome? Unfortunately, thinking we aren't worth it can seep into many areas of our lives, including entrepreneurship. Graphic designer @eva.schnrrbrgr reported that she was “scared to charge what I thought I deserved.”
Knowing your self-worth is a continuous practice. A good way to exercise a positive self-regard is to take care of yourself among the hustle and bustle of being an entrepreneur. Even if you love your work and breathe it, it is important to schedule in some downtime. As Eva wisely commented, “you are your best asset. So take care of yourself first! Plan enough vacations.”
final advice
A mistake is simply an opportunity to learn. Amongst the women we spoke to, it seems that this mindset is vital to keep going and thriving as a business owner. After all, as much as we'd like to, we'll probably never stop making mistakes—but we can stop ourselves from repeating the same ones.
Understanding what's best for your business also comes hand in hand with figuring out what's best for you as a person as you change and grow. Mina Alyeshmerni, the founder of Maimoun, counts "time alone to let your mind run away with thoughts and dreams" as essential when trying to "cultivate creativity." So, find out what your unique way of getting back in touch with yourself is. Is it a lunchtime jog? Or do you prefer a nighttime bath and a stretch? Maybe a regular hike that allows you to unplug completely? Practices such as yoga, meditation, and journaling are popular for a reason and can be genuinely restorative. Remember, though, stress alleviation and physical comfort are just one facet of self-care. Setting boundaries can do just as much for your well-being as an entrepreneur. And yes, drafting contracts to protect your precious work qualifies too.
Words by Adriana Lazarova