Being a business owner is all about trial and error— but I’m here to share 5 of my mistakes so that you can avoid them! Keep in mind that all circumstances are different, so take these with a grain of salt
1. Not setting up my business right away, properly.
I started Skylar Grace Co. during covid as a hobby business, and didn’t put much thought into it. Later down the road I decided to create an LLC and open my business bank account. This was super easy to do but I wish I had done this sooner, as it was overwhelming doing it for the first time in the midst of running things. It was especially annoying not having a business bank account to organize my business’s money! If you have a business and haven’t done these things yet— do it! It’s really easy and it makes things way more organized
2. Ordering too much inventory—just because a previous launch went well.
This can severely impact your business. Figuring out your product quantities can be very hard as you don’t want to miss out on sales by not having enough quantity, but you don’t want to overshoot and be left with product on your shelves. I had a super successful TikTok blow up in 2020 and when I restocked, I got more product than the original order- today, in 2023, I still have some of those items. If you overshoot, you are out of that cash needed to order new product!
3. Sending out product to creators without an agreement.
I still haven’t made one which is why I’ve slowed down and only send products to trustworthy creators that I’ve worked with before. So many people are doing UGC and want to become a micro influencers— but beware that not all follow through and you may miss out on a collaboration if you don’t have a contract signed.
4. Not keeping track of my expenses throughout the year.
Keeping track of your expenses is crucial when doing your taxes. All of the money you've spent running your business should get deducted from the amount you've made from your business. Your profit will be totally different if you forget to deduct all of your expenses, and you don't want taxed on incorrect profit! I highly recommend tracking your expenses every month or every quarter, rather than waiting until the end of the year to get it done- it'll take forever if you do that! I just use google sheets and look through my business's bank account to track.
5. Creating products that are 'eh' to me.
Creating products that you know will sell well, and creating products that you truly love, don't always fit into the same bucket, unfortunately. One of my best selling products is a tee that says 'It's Spooky Season, Baby' but truthfully, I kind of hate holiday themed products. In 2022 I really sat down and rethought my whole business 'look' and meaning & am moving in the right direction when it comes to creating product for ME. I know other people like me will find those items, so instead of trying to create things that everyone else is creating, I'm just going with my gut; even if the sales aren't as high. I'd rather create cohesive items to my brand than push out products that don't make sense for my brand. It's really hard to get pulled into trends and copy the industry, but try to be true to you when creating product!
Comment below which mistake of mine was the most interesting, and if you've made mistakes as a business owner! If you're an aspiring business owner, please leave questions below!