Sometimes I think that many of us who are trying to make a living as makers suffer from unrealistic growth expectations (myself included). We wonder why our business isn’t growing more quickly. Why we aren’t seeing more sales or more press. It seems that most of these unrealistic expectations center around speed and reach. We think we should be able to get bigger, faster, now.
While I think it’s fantastic to have big goals and big dreams, it’s important to temper those with a little bit of realism. I think these unrealistic growth expectations are what cause us to get frustrated, burnout, and ultimately give up our dreams. So as we move forward with growth week, I want to set the record straight on a few things:
- There is a limit to the amount a one-person company can grow. This has become my new mantra. When I get frustrated about how long it’s taking me to grow my company, I try to remind myself that one person can only do so much. If you want your company to grow faster, you need to bring in outside help. (This doesn’t necessarily mean hiring an employee – tomorrow I’m going to talk about getting outside help for your business in other ways.)
- You need to match your growth expectations to your lifestyle choices. You want to build a Jonathan Adler sized empire? Great! You want to do it while the kids are napping? Not likely. There is nothing wrong with fitting a small business in around the other parts of your life, as long as you understand that will ultimately limit your growth. Knowing whether you want to sacrifice your current lifestyle to pursue further growth is key to understanding how far your business can grow.
- You won’t make a full-time income running your business part-time. If you’re waiting until the income from your side venture equals the income from your full-time gig before you quit, you’re going to be waiting forever. If you truly want to turn your side gig into your full-time biz, at some point you need to do the math, make a few (personal) budget cuts, and jump off the cliff.
- Money makes growth happen faster. Most of us probably wish this one weren’t true, but it’s the way the business world works. There’s a reason large companies look for outside capitol – to fund growth. At some point, taking your business to the next level is going to require spending some amount of money that you previously thought was insane. But you have to view these as necessary expenses, or resign yourself to the fact that your business isn’t going to grow much.
- Growth requires a plan, not just a dream. Everything starts with a dream. But you need to create an action plan if you’re serious about growing. If you’ve never written a business plan before, now is the time to do it. It doesn’t have to be a full blown, fancy business plan. You can even write it on a napkin and keep it to yourself. But you do need to create a concrete plan to get you where you want to go. And this includes crunching numbers. Have you ever stopped to think about how many $20 pairs of earrings you need to sell to make $50,000 dollars this year?
I know that some of these statements may make you uncomfortable. (Some of them make me a little uncomfortable.) But I think understanding what factors promote and inhibit growth will go a long way in making us feel more content with where our businesses are now, and more confident in where they’re going in the future.
You’ll find more posts about growth all week long here on CMBA and over at Scoutie Girl.
woot!! so. very. true.
point 1 – that’s my I’m actively seeking outside help. I’ve got my independent contractor on board to handle the boring parts and the parts I’m not very good at. Note: she loves that kind of stuff! And I’m learning to work the affiliate angle to spread grow my sales team. Hope you’re planning on talking about affiliates when you talk about finding help elsewhere!
point 3 – Yes! Kick the door down! Take a leap! When my husband started watching Lola in the evenings so that I could work more on my business, my growth exploded. Time = Money.
point 4 – Amen.
Thanks, Megan!
I completely relate to this post! Thank you so much for putting into words the things I’ve been thinking about for the past month. I’m teetering between spending three hours a day on my small business to spending much more time – which is needed to really see growth. It’s hard to give up a full-time income for much less income. I’m looking into making some personal budget cuts, so I can invest more time into growing my small business. Thank goodness I have a husband who’s completely on board, or there would be no way I could make more time for my business.
Great post, Megan! I really resonated with the point that “Growth requires a plan, not just a dream.”
Sometimes, for me at least, a hazy fog of blind optimism stops me from crunching the necessary numbers. Maybe its easier (lazier?) to tell myself that “everything will work out OK”, but I know that in order to grow my business, I need to treat it like one!
And that includes drafting a business plan, making actionable –and measurable! –goals, and devoting more time and (eek!) money.
So — A little uncomfortableness is good for us, I think. It gets us to stop resting on our laurels, stretch our minds and abilities in ways we might not have thought possible, and ultimately grow for the good our our businesses.
I’m looking forward to the rest of the week!
this is great – I’m feeling so much more mentally prepared (thanks to your workshop too) I also think it’s super ok to chill with your ideas and products to make sure you have a sense of direction before throwing yourself out there. (but don’t obsess for too long,my problem. good equation to remember is: talk – action=sh*t)
also – there was an interesting Radio Times show this morning on entrepreneurship:
http://whyy.org/cms/radiotimes/2010/04/19/entrepreneurship-and-job-creation/
karen! thank you for reminding me about that. downloading right now – i heard the first 5 minutes on my drive home from target. made a mental note but i must have throw it out 😉
I agree! I hired outside help. Scoutie Girl Tara built my website! (Thanks, Tara!)
http://www.aileenholmes.com
Seriously, this was the first time I hired help. I tried for years to develop my own website but I always put it off because my skillset didn’t fit the job AND I have no plans in becoming a web designer so, why not hire the best? It was an investment in my business and shows that I take myself seriously. Potential clients are noticing the difference.
I also agree that growth takes time. You probably won’t see the fruits of your labors until you’ve given your, erm, fruit tree time to grow. : )
This is my year of taking myself and my business seriously. I took a business plan seminar a couple of weeks ago and started writing. The speaker at the seminar recommends that you not write the business plan in the same order as your table of contents. Start with Products/Services section first! Then, outline your marketing plan, investigate your competition (and how you are awesomer), and then figure out the financials. After you do all those, then you can analyze your investment and do your executive summary. Sounds like a lot but it can be broken down. Start with what ya know. Just start! : )
ack! you are so welcome!
Those points are a great reality check and really, not scary at all. I think what’s scary is going into something like a business blindly, not knowing what is in store or having a vague idea of how it will all unfold. I am so thankful for your honesty and expertise. Can’t wait to read more this week. Ok, over to Scoutie Girl now to fill my brain with more small biz advice.
So interesting, especially the point about lifestyle! I was lucky enough to be able to attend HatchFest this weekend (there’s one in Bozeman and a new one in Asheville, NC)… It’s a festival based on “mentoring the next generation of creative innovators), and I would highly recommend it to anyone who enjoys this blog.
The idea of creating a business while maintaining a laid-back/healthy lifestyle is one that I often contemplate. There were two amazing artists that spoke at the panel that really reflected this point of view, and I imagine their lifestyle becomes a key part of the “products” they create… The two that stood out to me were a Tennessee based designer (Prophetik, http://www.prophetik.com/) and the musician Matt Morris… (http://www.myspace.com/mattmorris )
Also, can anyone point me in the right direction for blogs/points of view/strategies of trying to build a company while the little ones are napping! (Tara, good to be reminded about the productivity that can come from just working in the evening)
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I think this is a very smart reality check for many of us creators and makers of the world.
I took the leap and left my full time gig to pursue a business venture less than one month ago, and this is one of the first things that I’ve learned thus far. Steep learning curve, I tell ya.
The idea that I think is important to understand that growth is limitless, but the note on a lifestyle that reflects that is so key.
Great post!
Great series! I have to admit it. I am one of those people who had dreamed of starting a business on the side and being so successful I could quit my day job. I underestimated the time I would have to put into my business to get it off the ground. That being said, I LOVE running my business. Since I don’t have the luxury of working full time on my craft, I need to channel my energy better in the limited time that I have to spend. I just wrote a blog post exploring this issue. I’d love feedback. http://creativesprinkle.blogspot.com/2010/04/mission-statement-who-needs-one.html
Great post. I’m working on my biz, and it can be soooo frustrating when things are going slowly. I’m coming from the angle atm that all the money I earn right now I invest right back into the biz. My aim is to grow my reach – and then I’ll be able to start taking a salary!
thanks so much for this post ~ it’s a great reminder!
i was feeling kind of stressed this morning trying to pack an order after the school drop off with my 2 year old clinging to my legs, thinking this is hard!! no day sleep anymore. . .
yet i’m always thinking {unrealistically} that i’d love it if my business took off!!
belinda
xx
Awesome post, Megan!
I love point one and am excited/interested in what you are going to say about that tomorrow.
Also, I liked the business plan idea. I needed to be reminded of this….I have big dreams and lots of ideas and spread sheets, but I do need to sit down and create a concrete plan. I work better when I have concrete plans.
Once again, I have gained insight and inspiration from your blog! Thanks!
It is amazing to see this in black and white! Without thinking about it we expect so much from ourselves and so often it is unrealistic. I love what I do. I don’t always make as much money as I would like. I am here for my kids. It is a balancing act and we have to make decisions about what we really want. A little number crunching helps though 😉
Interesting read! Something I’ve been thinking a lot about lately, is that if you want to grow your business you need to budget for growth. Not only does the price you set for your products have to cover your time and materials but also time to develop new ideas, make plans, learn new skills, experiment, participate in a community and to invest in help from others through things like courses or web design. Looking forward to the next post in your series!
This article makes sense! I was originally going to do everything by myself, but then I thought..this is making my brand so 1 dimensional. Plus I’m not trained to take photos or design logos. So I will be getting a professional photographer to do some great shots for me at the end of the month, and my logo is being rendered by my Uncle. There are cheap sources out there but you need to seek them out. Talk to people. The more people you know the more connections you can make and some really dear friends to boot. I’ve learned a lot about humanity in the past year. The crafting scene is full of happy people who want to share the happiness. Thank goodness I am creative or I don’t know what type of people I would run in to: S
-Keira
Don’t feel guilty or afraid about getting help, whether you’re a stay at home mom or a new business start up. It just makes good business sense, the help is out there and there’s all kinds of help from all over. When you seek help, you are running the show, you are directing what you want done and you get what you want done to your satisfaction. You”ll see that you’ll have more time to work on other sectors of your business and the creativity just flows non stop. I offer that kind of help whether it’s small help (assembling 10 pairs of earrings) or big help (shipping 1000 pieces to a Japanese boutique in Tokyo) and to watch someone take off because of it, is a thrill to me. That’s how it begins, small steps, and once you have a handle on those small steps, you take longer strides and before you know it, you’re off and running! Don’t be afraid to ask, ask for everything and do your homework. It all pays off in the end.
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I absolutely agree with that statment. One person couldn’t make your business growth. But, if you have a very busy hobby, your biz couldn’t move forward too. Actually, I have a plan but i don’t have time to take my plan. It really makes me frustrated. On the other side, I have a pile of jobs being done, otherwise, I don’t have extra money doing my biz…so sad…
Ricka
Great post – you said some things I really needed to hear. I’d say 95% of the time, I’m not concerned so much with how well my art is selling, but with how I feel about it. But that 5% of the time can be really frustrating. I’ve been insistent that it needs to grow itself, but maybe a small loan would expedite things…
Perfect timing! I have often thought about writing a book called “Waiting on Kindergarten” about growing a business slowly while you have young ones!:) My youngest is starting school in the fall and it’s just gotten busy enough that I outsource a few things.
One is marketing. I have hired someone to get wholesale accounts started. She’s great at it and knows the language. She’s done so well that I have two other people working with me now to keep up.
I also have found that I don’t need to do everything. By this I mean, I don’t need to print my own tags and labels and things like that. I can pay someone else to do it better and quicker and I can do the things that help grow the business.
It is hard to be patient and grow slowly, but it’s what we want right now for our kids. It’s been 5 years and the business is now ready to take on more and the kids aren’t needing as much. it’s sort of been a nice organic growth.
I love the blog and hope you keep sharing your insight with all of us!
As I delve more into e-commerce I’m starting to realize that one road connects to another. For example, you get the whole website thing figured out, then there’s search engine optimization which is an even bigger deal! And you start to learn interesting facts like if your website is in Java Script, it is unreadable by search engines and so on. Just because you launch your site doesn’t mean others can find it! You have to slowly cultivate reliable links and other ways to build a web presence. Marketing is going to be part of this effort no matter how one feels about it.
So the idea of outsourcing some of this is a great one- the hard part is finding reliable people and not scams if you are not fully aware of correct and incorrect procedures. I think this is what holds a lot of us back.
I totally agree, Faith. When I started with my marketing person, it was just someone I met through Twitter! We started chatting and she had a lot of “you know what you should do?!” ideas.
She has serious marketing experience and is now a stay-at-home-mom. So I said, “you have some great ideas, let’s pick one and work on it and see how it goes” and we did and it was great.
It IS hard to find someone you like and trust. Take your time with that one. Kristin isn’t the first marketing person that I’ve considered working with, but she is the first one to really understand “handmade” and also a desire to grow slowly.
There are a lot of blogs that feature advice for small business these days. It worries me that too many of them are dishing out a false reality to start-ups and new entrepreneurs. Some are even written by people who don’t even walk the walk.
But every time I come to Crafting an MBA I read great advice from you Megan. I look forward to each new post – I think this one is an important one and I am going to link to it on my blog because I get so many people asking me for small biz advice – here it is – right here in black and white.
Thank you
Fiona
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I echo all the other commenters – awesome post! Honesty is what people need when starting a business even if it brings down the fun factor just a tad. We all really need to do the math and make sure we are being realistic… that goes for money management as well as time management.
I run a small craft social networking-type site and I could spend 24 hours a day just answering support email… I love all of my users and want to do my best to help each one, but at the end of the day (or the beginning!) I have to set priorities and do the tasks that are best for the business as whole first. Each business is unique, but we all need to look at what is most important and what has the best return on investment – whether that investment is time or money.
Thanks for an awesome site!! xoxo
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Thank you so much for this post! I feel like it was exactly what I needed. I’m usually a superpositive and motivated person, but lately working 7 days a week, trying to squeeze in as much art time around my restaurant job is getting frustrating. I have a really hard time knowing when to stop, as the mountain of unfinished work is constantly growing. I feel guilty – like I’m procrastinating or being lazy – whenever I take a break and that’s made it hard to stay positive about both the present and the future. Plus, on top of all of this, I’m barely making enough to pay my bills, so quitting my day job is out of the question.
Then this awesome article came along — thank you so much! I’m going to bookmark this and refer back to it. I really love your posts – they always help me to find answers to the hard parts of running an indie business.
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Thank you so much for this incredibly important outline.
I keep trying to crunch the numbers of what it would take for my business to be financially a “success”–i.e. a lucrative, creative business that not only pays a “real” salary, but makes a real profit for growth and future opportunities. It’s staggering. I have determined that I can’t make it happen alone. Even if I had enough CUSTOMERS and SALES to make that financial goal, I could not possibly MAKE that much jewelry (thousands of piece of jewelry a year), along with the photographing, bookkeeping, marketing, shipping, admin, customer service, etc.
It’s been a harsh reality for me to know that I truly have limitations if my business stays a one-woman show…I thought that if I could set my mind to it, I can make it happen. But I am tempered by the fact that there are only 24 hours in one day.
Thanks for confirming what what really starting to become my reality. Your website is fantastic.
So timely and very well thought out. Thank you for this post. I like to refer to the statement Organic Growth.
TOTALLY. What Sara/Shy Siren said. Also: “Have you ever stopped to think about how many $20 pairs of earrings you need to sell to make $50,000 dollars this year?” This is a harsh fact I tried to ignore, but once you come to that realization, lots of things change.
Wonderful insight! Thanks a bunch for sharing. I’ve been thinking a lot on these points lately, and it was great to read what other people have to say via the comments on this post. My main “job” is being a full-time mommy, and I have come to realize that that will limit my business growth and I’m okay with that… for now 🙂
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