4 Mistakes I’ve Made As A Small Business Owner

kids fashion

Photo by Tanya Radoff

One of the questions I’m asked most is “what mistakes did you make when you first started your business?” It’s a very good question; it’s one that I wish I’d asked more times before I launched cuteheads. At the time when I launched, Instagram was just a glimmer in Kevin Systrom’s eye. There was no community of handmade shops where I lived (at least not that I was aware of). I did reach out to a few people like Rishi Narayan of Underground Printing and Houston-based designer Chloe Dao (one of my first inspirations, who continues to inspire me today), and they were very helpful. But hard as I tried not to make mistakes, I still made them. I continue to make them to this day, but thankfully, I make them on a smaller, much less expensive scale.

I’m going to share a couple of my biggest mistakes, along with the mistakes from shops who have also “been there, done that.”

  1. I was too nice and too trusting. I’d like to share a story with you. In the research phase of my line, I learned that I’d need to hire a pattern maker to make proprietary patterns, mark them, and grade them. Finding such a person was difficult, but I found someone in LA who had reviews, a website, and seemed completely credible. I paid her half upfront to do this job. Several months into the project, she promised me she was working, that everything was going well, that they’d be ready on time, even though we had already passed the agreed-upon deadline by weeks. I booked a trip to LA to pick up the patterns in person and deliver them to the factory in LA where I’d be having everything made. Airfare, a hotel in Downtown LA (BY MYSELF… if you’ve ever been to downtown LA, you know that’s not a pleasant experience), and time away from other work. When I arrived in LA, I called her and asked her when I should come by. “Not quite ready,” she tells me. What was I going to find when I got to her studio? You can imagine my dismay when I discovered not one. single. thing had been done. Not one. Furious doesn’t quite describe what I was feeling. Even then, in my anger, I didn’t outwardly get angry enough, which I still regret to this day. I left with no patterns and headed to the factory anyway, where luckily, they had an in-house pattern maker who  was able to create very workable patterns for me. I was out months of time, a lot of money, and had a pretty deep-seated disappointment in myself for letting this happen. Never again, I promised myself. I was completely and wholly trusting with not just her, but everyone who said they could help me launch my business. I became giddy over every opportunity. I naively thought that whatever people said they were going to do, they would do, because that’s how I operate. If you don’t stand up for your business, who will? Now, I try to make my goals and intentions clear to everyone I work with, and only choose to team up with others who share my business values.
  2. Biting off more than I could chew. One of the biggest mistakes I made early on was assuming I could sell everything I made, even with no end buyer in mind. I worked with a factory in the beginning, and they require minimums. Now I’d be able to meet their minimums, but when I first launched, it was very difficult. I should have worked with a smaller operation to make less and sell what I knew I could sell.
  3. Thinking “I” and “The Company” are the same thing. It can be difficult to separate yourself from a project you’re passionate about and realize our failures in business do not mean we ourselves are failures. I would even suggest that if you’ve ever even tried to start a business and failed, you should consider yourself successful. Some failures are simply beyond our control. I’ve had plenty of them. At the end of the day, my family and friends are most important, and they love me whether my business is successful or not. Sometimes we have to remind ourselves of that.
  4. Not valuing my work and my time enough. Pricing products isn’t just a simple formula, there are marketing implications. I confess that in the beginning, I undervalued my line because I was afraid to charge what it was worth. I didn’t give myself enough credit. As the business grew, I realized I was not only losing money, but undervaluing my products had an adverse effect on sales. I also work extremely hard; after awhile I realized it was okay to factor time into the price equation.

I enlisted the wisdom of several other shop owners I admire, and here are some of the mistakes they’ve made:

“My favorite business quote is “work smarter, not harder.” I think at some point, most of us small business owners get caught up in the madness of trying to stay relevant especially with social media playing such a pertinent role now. You can accomplish so much more by staying focused.” — Sahnda, Sahnda Marie Kids

“One mistake I made early on was not asking for help as much as I should have. I tried to do everything myself and there simply isn’t enough time in the day to be a mother, wife, business owner and everything else we are in life. If I could go back I would create a solid team of people to help.” — Melissa, Subsidy Shades

“Not having enough faith in myself is a mistake I made early on. I let fear control me and didn’t open my shop when I wanted. I was scared of the competition, if people wouldn’t like my product and that I would fail. Once I finally took the leap, I wished I had done it sooner. You can’t excel if you don’t take the first step.” — Stacy, Poppy Lane & Co

“One mistake that I continue to make with Little Adi + Co, is not knowing the right amount of goods to order. One season I overbought and another season I couldn’t keep things in stock. I think it’s especially hard in the first year as a small business. Funds are typically tight, so each transaction that goes on your books is scrutinized. There is so much to pay for in the beginning that it makes it difficult to navigate the ebbs & flows of your first year in business and know exactly what the needs are. Now, I’m dealing with the growing pains and figuring it out as our business expands. It’s a constant struggle that I wish I had more of a handle on.” – Adrianne, Little Adi + Co.

“If I could do anything differently, I would have allowed myself to take on less and hired help. As a small business, all you want is growth, and  it’s difficult to say “no,” but at times I think I spread myself too thin. I try to be more mindful of what I take on myself.” — Keri, Little Big Dreamers

“If I could go back and change anything I would have started my IG myself. I hired someone to start my IG account for me and she did everything wrong!! She took pictures from people and didn’t give them credit and it was a huge mess. So if I can give anyone advice it would be to approve all things before posting. Not just on IG but on all Social Media outlets.” — Gina, Candy Couture Shop

“When you first start, you can be tempted to be everything to everyone. Now, a few years in, we have learned that it is most important to figure out what you do best and perfect that product or service. The same goes for distribution – try to stick with one channel of distribution when you are first starting out. When you are small, the temptation is to sell through every channel possible. Looking back, the best way to go is to focus on one, dominate it and then consider expanding into other channels next.” — Chloe, Paris Texas Apparel Co. 

“I think one of the biggest mistake people make when starting their business is to not do branding for their business from the get-go. Just because a business is a small start up does not mean it doesn’t need good branding- a good logo, website design, packaging, etc. I think it’s what really separates “hobby” and “homemade” business from true handmade businesses. It’s important to have a vision for your store and the story it will tell before it opens. Having a cohesive look and brand when it starts up creates interest and shows people that it is a serious business that has a story to tell with their products. Logo design, branding and website design is an investment that pays off! It doesn’t matter if it’s done by yourself and is super simple, or if it’s done by a designer. The important part is that it is aesthetically pleasing, cohesive and  makes your brand look professional!” – Jessica, Mint & Birch

“When someone looks at your feed they need to be able to tell what you’re selling in a glance. Don’t fill your page with clutter.” – Chandra, Posh Pax Designs

“I think mistakes are a way of life. When it comes to running a business,  they’re inevitable. I’m such a “giver” (I definitely think that’s my love language) and am always giving what I can. Unfortunately my generosity has led to me being taken advantage of numerous times; Customers, friends, you name it. Everyone’s trying to save a buck or get something for free. Us small businesses and handmade shops are often taken advantage more than others because we are only 1 or 2 people. In the end, we have feelings, and stand behind our products and company and will do anything to make a customer happy. It can be a blessing and a curse.” – Jennifer, Livie Loo’s Bowtique

Wha mistakes have YOU made in your entrepreneurial journey? Leave them + a link to your business in the comments below.

 

 

4 thoughts on “4 Mistakes I’ve Made As A Small Business Owner

  1. I love all of your advice and guidance, Esther. You are such a great entrepreneur not only because you’ve created such an amazing (and utterly cute) business, but because you’ve been human like the rest of us and you’re willing to share your experiences to help others grow. I TOTALLY get it about the experience with the pattern company in LA. I have been in similar situations and am learning how to express myself in them instead of act like nothing is wrong. I’m so proud of you and excited for all of the great things to come from you and Cuteheads, on top of what already has. You rock, sister!

    xoxo

    Laura Max

    1. YOU rock! Thank you so much for the kind words, my friend. Same to you, you are going to accomplish big, amazing things. You already have. xo

  2. Esther,
    Awesome read some great advice!! Thank you for allowing me to be part of this amazing group of women.

    Love it ♡
    Xo
    Gina

Comments are closed.

About Esther

The Cuteness: sharing daily inspiration, kids fashion, work/life balance + small business how to's from mom & business owner Esther Freedman