Launching a business is a journey filled with ups and downs, and the lessons learned along the way are invaluable. Since founding my company, Moments, in 2017, I’ve encountered numerous challenges and roadblocks. However, with the support of a dedicated team and invaluable mentors, we’ve managed to overcome many of them. Here are the top four lessons I’ve learned since launching my own business.
One of the most crucial steps in launching a business is thorough research and planning. Before I launched Moments, I spent a considerable amount of time assessing the industry, analyzing potential competitors, and mapping out a SWOT (strength, weakness, opportunities, and threats) analysis. This preparation provided us with clear goals and a roadmap to navigate the early days of our business. Having a well-thought-out plan was vital in keeping us focused on the bigger picture and our mission.
Researching the market and understanding where we could fit and grow was essential. It allowed us to identify opportunities and potential challenges, enabling us to make informed decisions. This initial groundwork laid a strong foundation for our business and set us up for success. Without this intense research and planning, we would have been navigating blindly, increasing the risk of failure.
Moreover, planning doesn’t stop once the business is launched. Continuously revisiting and updating our plans has been crucial in adapting to changing market conditions and staying ahead of the competition. This ongoing process ensures that we remain aligned with our goals and can pivot when necessary to seize new opportunities.
Be Close to the Numbers
Understanding the financial aspects of your business is critical for its success. It’s not enough to focus solely on the number of units sold or the revenue generated; you need to delve into the analytics behind those sales. Staying on top of the numbers ensures that your business remains profitable and maintains a healthy cash flow. It also guides your decision-making process, helping you identify areas for improvement and growth.
For example, in 2018, our average basket value of each sale was $11.20. By making a few tweaks to our website and implementing smarter pricing strategies, we were able to increase the average value to $38.28. Additionally, through clever re-marketing efforts, our returning customer rate increased by 16.06 percent year-on-year. These improvements were only possible because we closely monitored our financial metrics and made data-driven decisions.
Being close to the numbers also means understanding your costs and margins. Knowing where your money is going and how much profit you’re making on each sale is essential for sustainable growth. It allows you to identify areas where you can cut costs or invest more to maximize returns. This financial awareness has been a key factor in our business’s success and resilience.
Innovation is Crucial for Business Survival
In today’s competitive and ever-evolving environment, innovation is crucial for business survival. Whether you’re selling a product or service, staying at the forefront of your industry and remaining relevant to your target market is essential for continued growth. Innovation doesn’t always have to involve high-cost technical advancements; it can take many forms, from changes to the sales process to adaptations in packaging or marketing strategies.
For us, innovation has been a driving force behind our success. By continuously seeking new ways to improve our products and services, we’ve been able to stay ahead of the competition and meet the evolving needs of our customers. This commitment to innovation has enabled us to adapt to market changes and seize new opportunities, ensuring our business remains resilient and competitive.
Moreover, fostering a culture of innovation within the team has been vital. Encouraging employees to think creatively and contribute ideas has led to numerous improvements and breakthroughs. This collaborative approach has not only enhanced our products and services but also created a dynamic and motivated work environment.
Take the Bull by the Horns
Running a small business requires determination, resilience, and confidence. There will be days when it feels like nothing is going according to plan, but it’s important to acknowledge these challenges and face them head-on. Embracing a proactive mindset and tackling problems as they arise is crucial for overcoming obstacles and achieving success.
Throughout my journey, I’ve learned that taking the bull by the horns means being willing to make tough decisions and take calculated risks. It’s about having the courage to step out of your comfort zone and pursue opportunities that may seem daunting. This approach has allowed us to navigate through difficult times and emerge stronger on the other side.
Additionally, surrounding yourself with a supportive team and seeking guidance from mentors can make a significant difference. Their insights and encouragement can provide the motivation and perspective needed to persevere through challenging situations. Building a network of trusted advisors has been instrumental in our business’s growth and resilience.
In conclusion, the journey of launching and running a business is filled with valuable lessons. By intensely researching and planning, staying close to the numbers, embracing innovation, and taking the bull by the horns, we’ve been able to navigate the challenges and achieve success. These lessons have not only strengthened our business but also shaped us as entrepreneurs, preparing us for future growth and opportunities.
