From Naiveté to Clarity: Lessons from My First Business (and How You Can Avoid My Mistakes)
Save time, money, and headaches by learning from what I did wrong the first time
When I started my first business in 2014, I was excited, motivated, and, frankly, pretty naive. It probably didn't help that I quickly started making more than my previous corporate salary. Don't get me wrong, early success is exhilarating, but I relied heavily on referrals and my existing network to generate clients. This meant I didn't see the immediate need for marketing, building robust systems, or even creating my own website until more than two years into the business.
By then, it was too late. I hadn't built a strong foundation. When my referrals ran dry and my network had been tapped, my sales pipeline vanished. I had to scramble to ramp up marketing from scratch as revenue plummeted month-to-month. I hastily built a basic website. I pinged my network again, but to no avail. While I had a few long-term projects, all my one-off work dried up.
Revenue was down 50% year-over-year. I had no fresh leads, no real clue how to generate new business, and insufficient income to invest in advertising to fill the pipeline. I didn't see any of this coming because I simply wasn't looking. I got a lot of new business right away and never imagined it would eventually slow down or stop.
I struggled to stay motivated and excited, now scrambling just to find new clients. I watched my income fall steadily, and my options dwindled. I could double down, figure out sales, take a loan and invest in advertising, refresh my website, or I could just call it a day. In the end, I decided to close shop and took another full-time agency job. My last client stayed with me for another six months while I worked my regular job, and then I quietly shut down my business. I went out with a whimper, not a bang.
What You'll Learn: Your Blueprint for Sustainable Growth
In this article, you'll learn from my missteps so you can avoid similar pitfalls. My aim is to save you time, money, and stress as you build or grow your own business. Invest the next few minutes reading this, and you might just bypass years of hard-earned lessons.
We'll cover:
The critical importance of focus and strategic planning from day one.
Why you should never take early success for granted and always diversify your lead sources.
The power of value-based pricing over hourly rates.
The smart investments that truly pay off in the long run.
How I'm applying these lessons to Epicurean Consultant for sustainable success.
Main Lessons Learned: Building a Resilient Business
My journey taught me several invaluable lessons, often the hard way. These insights are crucial for any solopreneur or SMB owner aiming for long-term stability and growth.
Lesson 1: Focus and Strategic Planning are Non-Negotiable
When I started my first business, I lacked a clear vision. My background was in digital marketing, so I offered everything under the sun. I wouldn't say no to any request, and if I didn't know how to do something, I'd learn it on the fly. My service list, though only in my head, was exhaustive. I also didn't define a specific niche; I was simply hungry for clients, saying yes to everyone and everything. My sole focus was generating quick income, not building a sustainable enterprise.
This broad approach meant I did many things at an average level. In today's competitive landscape, especially with AI leveling the playing field, average isn't enough. You need to excel. Back then, I needed to deliver outstanding value consistently, and I didn't. My initial success, fueled by my network, also meant I neglected foundational elements like a business website or a marketing plan for over two years. There was no core belief guiding my actions, just short-term thinking.
Key Takeaways:
Niche Down: Don't try to be everything to everybody. Start with a smaller set of services or products where you can deliver exceptional value. You can always expand later.
Define Your Mission & Values: Create a clear mission statement and a set of values. These will guide your day-to-day decisions and ensure your actions align with your long-term vision.
Market from Day One: Even if you start strong, invest time and resources in a solid marketing foundation immediately. Organic traffic and social media take time to build. Your sales pipeline won't fill itself; create lead magnets, network, ask for referrals and testimonials, and build compelling content from the outset. You'll thank yourself later when things get busy.
Lesson 2: Never Take Early Success for Granted
My first business took off quickly. I had a strong network and good relationships from my previous roles, allowing me to land clients and match my corporate salary almost instantly. It felt easy, and I assumed the referrals would keep flowing as long as I had capacity. I had built trust over years, and leveraging that felt like a natural, effortless path to new business.
What I didn't anticipate was that the referrals would eventually dry up. When my work quality wasn't consistently outstanding because I was spread too thin across too many services, those recommendations slowed. After two years, longer-term projects concluded, and I had nothing to replace them. The easy days were over.
Key Takeaways:
Constant Effort: Sustainable business requires continuous effort. Don't just focus on delivering value; dedicate time to the boring backend stuff, too. Don't rely on just one source for new business.
Diversify Lead Sources: Even if you have a strong referral network, actively build other lead generation channels like content marketing, social media, and paid advertising. A diversified pipeline provides stability.
No Victory Laps: Early success is not a guarantee of future performance. Continuously work at nurturing client relationships, refining your offerings, and adapting to market changes.
Lesson 3: The Pitfalls of Hourly Pricing – Value Over Time
In my early days, chasing revenue meant I felt good about my hourly pricing model. Making $75, $90, or even $100 an hour felt fantastic, far more than I had ever earned before. However, I failed to consider how this model would ultimately cap my potential and keep me tethered to my desk.
There are only so many hours in a day. By pricing hourly, I imposed an artificial ceiling on my income. While I eventually brought on a couple of subcontractors to handle overflow, they also had full-time jobs, and I wasn't keen on becoming a manager again. The complexities of running the business were already enough without adding that potential headache.
My short-term thinking meant I felt locked into the hourly model after the first few clients. I didn't step back to research better pricing strategies for consultants. I was only familiar with salaried work, hourly rates, and agency models based on a percentage of spend.
Key Takeaways:
Research Pricing Models: Before you start, research and understand various pricing models. Value-based pricing, where you charge for the outcome or solution rather than the time spent, often offers greater potential for growth and better aligns with the value you deliver.
Embrace Recurring Revenue: Aim for steady, monthly recurring revenue through subscription or retainer services. This helps smooth out the inevitable ups and downs of project-based work, providing financial stability.
Value Your Expertise: Don't undervalue your work from the outset. Stand firm on your pricing. Your expertise is valuable, and your rates should reflect that.
Lesson 4: Smart Investments and Leveraging Your Network
Despite my missteps, I did get a few things right, and these practices continue to serve me well today.
Reinvesting Wisely: I reinvested in the business when appropriate. Hiring a CPA for quarterly taxes and using them as a financial and business consultant allowed me to focus on client work rather than worrying about taxes or balance sheets. While I still monitored my numbers, I delegated the heavy lifting.
Leveraging My Network: I wasn't afraid to tap into my network and work relationships. I reached out to former colleagues and bosses for coffee meetings to discuss my services. I had invested years in building those relationships, so it made sense to leverage that trust.
Sticking to Expertise: For the most part, I stayed within my lane, focusing on areas where I had genuine expertise. While there were times I should have said no to projects outside my core competencies, generally, this approach helped me deliver my best work and retain clients.
Key Takeaways:
Strategic Reinvestment: Especially when bootstrapping, be discerning about where you spend revenue. Invest in tools, systems, and services that boost efficiency and productivity. These early investments pay dividends later.
Network is Gold: Don't hesitate to leverage the relationships you've built. Your network can be a powerful source of referrals, collaborations, and valuable insights.
Focus on Core Competencies: Particularly when starting, focus on services or products you know well and can deliver consistently. There will be time to learn and expand into new areas once your foundation is solid.
Epicurean Consultant: Applying Lessons Learned for Sustainable Success
With Epicurean Consultant, I'm doing things differently, incorporating every hard-won lesson into a robust game plan for sustainable success:
Long-Term Vision & Planning: I'm thinking longer term and planning meticulously, not as procrastination, but to build a solid foundation, including clear mission and values statements, and a comprehensive marketing plan.
Niche Focus: I've niched down to serve epicurean, experience-driven brands, aligning my business with my passions and expertise.
Value-Based Packages: My services are now priced as packages based on the value they deliver, moving away from the limiting hourly model.
Proactive Marketing: I created extensive content, built a website, developed lead magnets, and set up email automation sequences before officially launching. This ensures a continuous prospect pipeline, independent of referral business.
Smart Technology Investment: I invested early in tools and services that enhance efficiency and productivity. Working with AI from the outset has allowed me to create 10x the assets in half the time.
Strategic Networking: I'm leveraging my network to gain visibility and build my personal brand, rather than just selling directly.
Personal Brand Development: As a solopreneur, my personal brand is intertwined with my business. I'm actively building both in parallel.
Diversified Income Streams: I'm working on diversifying my income by developing digital products, mobile apps, and other side projects.
Conclusion: Your Path to Clarity and Growth
You might see echoes of your own journey in my mistakes, or perhaps you're just starting and want to avoid them entirely. Either way, I hope this rundown has provided new perspectives on building and growing your business. I made a ton of mistakes the first time around, and honestly, I'm glad I did. Those experiences were invaluable, shaping my approach to Epicurean Consultant with greater clarity and a much stronger game plan for sustainable success.
The world of entrepreneurship is challenging, but it doesn't have to be a series of painful lessons. By learning from those who've walked the path before you, you can navigate the complexities with greater confidence and efficiency.
What mistakes have you made as a solopreneur or SMB owner? Have you ventured into other businesses in the past? Share your experiences in the comments below.
If you're currently navigating these challenges and want to bounce ideas off someone who's been there, please reach out. Send me a DM or post a comment. I'm here to help.
—Joe
Thank you for sharing this.
Thanks for sharing the lessen you learned with the rest of us!