One of the main things my clients and social media followers discuss is how they feel their businesses are failing. They have tried a million in one things, but they cant seem to stay afloat in their business. It should also be noted that it often takes a business at least a couple years to actually break even, you do not magically become an overnight success with millions coming in. Remember this as you are going along this entrepreneurial journey.
Some people do not give their dream businesses that long before deeming it a failure and moving on to the next big thing. Let’s work on three things that are preventing you from actually succeeding in the creative entrepreneur world.
Consistent With Your Business
This happens to be the biggest misstep of it all. Clients always say the market is crowded–“I will never succeed because so many are doing what I am doing.” “I just need to switch to another style of company.” A future client hit it on the head when she said the fashion boutique market is crowded, but she just needs to niche it down so she can succeed. As mentioned earlier, you will not become a millionaire let alone a billionaire the first year of business. Twitter was not even profitable until October 30, 2013–think about it. Twitter had existed seven years without making profits and this is a company that is known world wide. We must put this stuff in perspective, give your business TIME. Giving three years of full time work and dedication then suddenly deciding you’ve have had enough is not the decision you should probably consider.
Pricing is Inconsistent
I almost want to cover my eyes as I scroll through social media and see what people charge for their products or services. Most creative women- business owners under charge for their products or services. We wonder why their is a pay gap on the corporate ladder but the reality is, there is one in the entrepreneur world too. Men tend to see their value-even if they don’t, they charge what they feel they should be making and they don’t low ball themselves. Men tend to realize easier it is about creating profit and sustaining innovation that keeps their business ahead. The point is, you should not sell yourself short.
As a consumer, you have probably thought when shopping “oh that shirt has a serious mark up at said department store.” There is a perfect reason behind the mark up you are not understanding. Said company needs to get a ROI on the inventory they have purchased. Most clients price too high for low quality items, or they don’t charge enough to break even. I would suggest reading these books on Pricing For Your Business:
- Pricing for Profit
- Pricing for Profit eBook
- Pricing for Profit: How to Develop a Powerful Pricing Strategy for Your Business
- The Pricing and Profit Playbook
Creating a formula for your business pricing is something you need to heavily consider and than execute. Do not simply estimate what you should charge, or dwell on what is necessarily fair for your customers. Create value in your product, if it was up to customers or clients they would want it for FREE, but of course, this isn’t what is practical for your business. You really must stand behind your prices. When you come across products that are priced cheaply, but might easily sell for more, it sends a message the owner does not value their products and as a consumer, you should not either. Your pricing tells people how they should value your business.
Trying to Be Everything You Are Not
Too many young creatives get caught in a web of being overly versatile and wanting to appeal to a mass market, verses being niched down. Seeing boutiques sale hair, clothes, shoes, makeup, waist clinchers and more, loaded in one poorly developed website spreads you thin across all boards. You don’t need to be everything to every customer. One of the biggest and most concerning things I hear from people who don’t know how to run a business is, “You need multiple streams of income.” Yes, this is very true, however, it should be down the line, not as soon as you start. This is exactly why business owners become inconsistent, they are simply focused on too many projects as opposed to creating one funnel at a time.
You’ll need consistent and stable income coming in before you divide your time. There are several millionaires out there that have one funnel of income. Remember, you don’t have to do everything the masses are doing to achieve your dreams.
Are you making any of these mistakes? Have you seen other businesses do these things? What are other factors involved in a business failing?
Photography by Brittanie Reid
This post includes affiliate links to Amazon which I receive a small compensation.