2010 was a good year for my business on many levels. Not only did I make more money than I have in any other year, but I ended the year feeling confident about the direction my business is headed in.
But that didn’t happen by accident.
In 2010, I made some key strategic and mental changes to my business that helped me have a successful year. There are three in particular that stand out as the best things I did for my business in 2010:
1. I focused on my core strengths.
In 2009, I tried expanding my product offerings. I added home décor products and the cozy/cuff. As a result, the jewelry took a back seat. And what I learned in 2009 was there was A LOT I didn’t know about how to manufacture, price, and promote home décor products.
So in 2010, I made a commitment to refocus on the jewelry aspect of my business. I discontinued the home décor line. I put the jewelry front and center in my trade show booth. And most importantly, I began to remind myself of the reasons I started making jewelry in the first place.
By renewing my passion for jewelry, I was able to focus on a product line that I feel confident about, that I know how to sell, and that is extremely profitable.
2. I put money into savings.
One of the biggest lessons I learned in 2010 was that it’s really difficult to run a creative business if your personal finances are a mess.
Up until August of this year, I never had a true savings account. Instead, I was always living paycheck to paycheck. (Or paycheck to “I really hope my business makes some money this month.”) One financial setback (like gum surgery) was enough to stress me out, and set me back, for months.
But in August, I made a commitment to putting money into savings every month. And not just a little money. I decided to put all the money from one entire revenue stream from my business into savings every month.
By making this commitment, I don’t have to think about whether I should put money into savings or use it on something else. As soon as money comes in from that particular source, it goes straight into my savings account.
And by finally having a savings account, I’ve found I can breath much easier. Which has made running my business that much easier.
3. I made a commitment to running THIS business.
Like many creative entrepreneurs, I often think I have business ADD. At times while running my business, I am struck by a serious case of doubt. I wonder, “Do I really want to do this the rest of my life?” “Am I really in the right business?”
And when that would happen, I’d start to get distracted. I’d take on other projects and commitments. And as a result, my core business would suffer.
There’s an episode of Friends where Chandler is concerned that Monica will leave him because she’s just met her soul mate. When Chandler asks her about it, Monica replies that she doesn’t believe in soul mates. “I think you make a choice to be with someone, and you work at it,” she says. “Some days you work really hard at it.”
I believe this is also true when it comes to making a business work. Do I sometimes hear the siren call of other possible careers or businesses? Of course. But the difference this year is that now, I’ve made a commitment to my business. I’m in it for the long haul.
And when you make that kind of commitment, good things happen.
Your #2 resonates with me. I spent all my savings when I moved to the UK, and found myself living on a temp job and wondering whether I should start saving up baked beans tins “just in case”. I have now a direct payment from my account to my savings, and slowly but surely, it’s growing, and I can afford to pay for courses that will make my business earn money.
Business ADD – that’s great! Describes me to a T. I don’t know how many times I’ve gotten some great idea for a creative business and had to make myself FOCUS. I mean, I talk out loud to myself and say, “FOCUS, FOCUS!” I’ve done better lately and can see the difference, but it’s still a struggle sometimes.
This post really has hit me today. I’ve been feeling a sort of lack of direction, a bit of a mess when it comes to saving money for taxes, etc. and wondering what to do from here with my business. I have a plan as far as the finances go, but I’m feeling burned out with my business – probably just the whole crafty ADD thing. So glad you wrote this. It’s inspiring me to get focused and move on with my business!
Thanks so much for this! It totally sums up how I’ve been for the last few months and has instantly realigned my attitude!
Brilliant 😀
Congrats on your business having such a great year! Also, thanks for this blog, because I always find fantastic advice here.
I’ve never had much of a problem with #2, but I definitely find myself falling into the whole ADD thing, both regarding my own business and my overall career path. I definitely plan on bringing more focus into my business this year. By focusing on the styles of jewelry that sold well this year I can both simplify my inventory/bookkeeping (my office AND my spreadsheets are a mess right now!) and (hopefully) increase my sales. I’m very excited to see what 2011 will bring!
Thanks for this thoughtful and inspiring post. Number 3 is so important, I’m considering it my new mantra for 2011!
Wow, thank you for being so honest! #3 is literally me right now…I get small panics if I’ve chosen to be in the right business. Thank you for reminding me to really commit to the choice I’ve made. Congrats on all your success!
Thanks for your honesty when it comes to #2 and having savings. I think people can assume that because you have a successful business (especially if you are self employed) that you don’t have money problems. Of course just because the money comes in, doesn’t mean it stays in. There are all sorts of things a business has to pay for, and I’m really bad about paying for all of those things no matter what and leaving for myself what is left (if anything). I can relate so strongly to living week-by-week. If I have a craft fair, good week- no fair, bad week. I have made a commitment to myself this year to pay myself an actual paycheck from my business. Then I can budget my personal finances a bit better. I love the idea of saving too though, and I’m going to make that part of my goals now too more than before.
Wow, congratulations on your successes this year! I have the same sort of ADD, and I’ve just lately been able to break through the fog for some focus. It’s like everything else, you have to commit to working on it….training the brain. I’m always terrified of missing something though! Isn’t it funny that we fear we’re missing out on so much that we actually miss out on what’s right in front of us? Props for the Friends’ quote. Love that episode! 😉
Thanks for another great post! Since I started reading DailyWorth over a year ago, I’ve increased my savings quite a bit, and I do feel committed to running my busines. So number 1 is what catches my attention for this new year. Focus on core strengths, yes. I need to find out what is specific about promoting home decor products.
I wish you continued prosperity in 2011!
I love how you took the time to figure out what worked and made your year so successful. Your first point really resonated with me. It’s so much easier when you do what comes naturally to you. Also, what a great idea to dedicate one entire revenue stream into savings AND to make it automatic!
Great stuff. I’ve been really focused on helping low-income artists and artisans work on goal #2 through my nonprofit “Assets for Artists” program, which provides a 1:1 savings match (free money, up to $2,000) to accompany financial & business training so the artist can have future “working capital” for key investments. I think it’s a useful model. Many of the artists in my program say a lot of the same things you’ve said about saving. Right now Assets for Artists is only available in parts of Massachusetts, but your readers could research IDAs (matched savings accounts) in their own community at http://www.cfed.org. Eligibility is typically income-based, but many artists and artisans will qualify. Thanks again for all the great posts.
This post reminds me of Mindset by Carol Dweck. It is easy to lose focus with the self-doubt (I do it too often until my husband reins me in) and then clutter your core business with all of the extraneous fluff. It is like finally cleaning out my sock drawer and removing the ones that no longer make a pair.
I love this post – great tips and learnings!
I made a few major changes in 2010 and they have helped me, but I know I need to make a few more in order to get where I want to be.
I love #3 the most. I have business ADD and one of my main goals is to curb that into focus. {I also love the Friends reference :)}
Good read. I just posted on my blog the other day about FOCUS being a goal for this year – that and organization. Thanks for sharing your experience and direction.
Thanks for this post. It’s great to hear that you’re having such success and nice to have hear some concrete steps that that got you there. I feel like I need to re-commit to all 3 of those things. Thanks for the kick in the pants:)
Not sure how you define your business. Is it one business or 2 businesses? Plus don’t you teach too? I think it is easy to save money when you have many different areas/people in your life that help support your livelihood, some which seem to be steady…
Julie – I define everything I do as one business, because it is all related to the field of craft and design.
In the past, I’ve been seduced by many different business ideas and activities that have had nothing to do with crafts or jewelry. In #3, I mean that I’m focusing on this field and not diving into total other tangents. (Like bicycle education.)
And yes, I do teach. I’ve taught off and on the entire time I’ve been running my business, for reasons beyond the money I get paid as a part-time instructor. (You can check out this post for more on my thoughts on teaching – http://www.craftmba.com/2010/06/22/why-im-not-quitting-my-day-job/ )
And I do agree with you that it’s easier to save money when you’ve got many different areas where money comes in, which is why I think it’s so important to have multiple streams of income.
But just because you have multiple streams of income doesn’t mean you’ll necessarily save money. It wasn’t until I made a conscious effort that I went from spender to saver.
This is spot-on. The whole business ADD thing…I call it “Making Boxes,” because when my Grandma would come to visit, and she would go home with more than she came with, she would spend at least 4 days “making a box” to fit exactly what she was packing! Or we’d bring home 10 boxes for her to try out! Like, literally! Whenever, I feel myself losing focus, I have to say out loud “STOP making boxes!” Just put it in, and move on! It helps… 🙂
Pingback:Sunday Afternoon Housewife » Blog Archive » Monday Link Love Roundup
All so familiar. After 10 years being in the creative business, I still have the ADD approach to many days. I try to remember when I made my very first handbag — took me all day, and as I lie in bed at the end of that day, I thought, “what makes me think I can make enough to make a living at this?” The answer came, “I just have to make the next one.”
I love your website, and your voice.
Sandra
Pingback:Fresh Money Studio bookkeeping and taxes for artists, crafters and creative businesses
It’s good to know I dont THINK by myself. Your honesty and realness really helps me to deal with doubt and anxiety jitters-lol! I think I can, I think I can…
Thanks!
Pingback:the 3 best things I did for my business in 2011