My 4 Biggest Mistakes in Business: Lessons Learned the Hard Way

I'm diving into some of the mistakes I’ve made in business over the years. Mistakes are great for learning, but let's aim to avoid the big ones, shall we? Here are a few blunders that stand out and the lessons learned from them.

1.    Ignoring the Financials

In the early days, I was all about the things I loved—marketing, meeting clients, building the team. But when it came to finances, I stuck my head in the sand. I had a bookkeeper, but I didn’t check their work as thoroughly as I should have. Guess what? The books weren’t as good as they should be.

Lesson Learned: Even if you don’t enjoy certain tasks, like managing finances, you need to understand them enough to ensure they’re done correctly. It’s crucial to keep an eye on every aspect of your business, even the ones you find dull.

2. Overestimating Growth and Overcommitting

There were three of us when I decided to rent a space for 13 consultants. I thought we’d grow quickly. Spoiler alert: we didn’t. I ended up having to sublet the space, which took my focus away from growing the business.

Lesson Learned: Be realistic about growth. Don’t overcommit to large expenses like office space or advanced tech that you don’t need yet. Grow your resources in line with your business needs, not ahead of them.

3. Not Empowering My Team

In the beginning, I didn’t give my team enough space to step up and be leaders. I was too quick to solve their problems instead of letting them figure things out.

Lesson Learned: Allow your team to take on leadership roles, even if it’s just in their tasks. By letting them handle challenges, you empower them to grow and become more self-sufficient. It’s okay to step back and let them make decisions.

4. Managing Mediocrity

I struggled with managing those middle performers—the ones who weren’t top performers but weren’t failing either. I spent too much time on them and not enough on my top performers, which wasn’t fair to anyone.

Lesson Learned: Focus on your top performers as much as, if not more than, your middle performers. Don’t hesitate to make decisions about underperformers. Identify if they lack skills, clarity, or enjoyment in their role, and act quickly to address the issues or let them go if necessary.

Final Thoughts

So, to recap:

1. Stay involved in all areas of your business, even the boring ones.

2. Grow your resources as your business grows.

3. Empower your team to take on leadership roles.

4. Manage your team effectively, prioritizing top performers and making swift decisions about underperformers.

I hope these insights help you avoid some of the pitfalls I’ve encountered. Until next time, keep learning and growing!