Ep 11 | What You Should Know if You’re a New Boutique Owner
If you’re a new boutique owner or maybe you’re thinking about going full time - there will be high’s and low’s and today we talk about three keys in how to navigate that and set yourself up for success through thick and thin. We want this conversation to be an encouragement to you and maybe even a redirection so you don’t make some of the most common mistakes boutique owners make. Most boutique owners are first-time business owners. There's a big learning curve here and we want to set you up for success.
Three things to know:
Go from hobby to legacy.
The IRS treats you like an actual business, so you should act like an actual business. Don't treat it like a hobby. Get serious about the backend and the business side, then you won’t make mistakes and suffer burnout. Something key to think about: If you just have a hobby, you're not building a legacy.
Pay attention to who you listen to.
There's a lot of competing voices out there, with different opinions about different things. Seek professional advice specific to your industry. Have a good filter on what you're taking in and weigh it against what you know to be true, rather than grabbing anything you. It can be an addiction to information and there's always new information coming out and it takes time to implement even the good things, so don't overwhelm yourself. Find a common thread of what works for you, specific to your industry. And find people you trust. Your business as a business affects your whole life so discern the outside voices and apply what works uniquely for you. You can also consult those who are closest to you, because they know your heart - even if they don't know your industry, they know YOU and they want to support your goals and sometimes offer new and different perspectives.
One thing to look out for is shaming "negative thinking" because that's not always the problem and positive thinking isn't always the simple answer. For example, rather than being afraid of your negative thoughts, they may be information on a reality that you have to face - and rather than just going off feelings, you need real data in front of you so you can make logical, strategic business moves, rather than sitting in denial of reality, trapped in negative thoughts - or trapped in positive thinking that isn't actually getting you anywhere fast. Does that make sense.
Don't panic.
Think longterm not short term with everything in your business. By not thinking longterm this is how a lot of people get themselves in a mess with the IRS, not saving money, etc. You also won't be very successful right away - you have to be patient because the average years it takes to be truly profitable is five years. This isn't always the case, but be prepared to not be profitable for a while as you establish your reputation and business. Luke 16:10 tells us, “One who is faithful in a very little is also faithful in much, and one who is dishonest in a very little is also dishonest in much." When we're faithful in the new, smaller version of your business, this will be the solid foundation to build from for your legacy.
You can also look at your personal finances - not just your business finances and being a good steward of that, too because it's all connected. Your personal budgeting and planning will affect your business. Be diligent in both areas of your life - not flying by the seat of your pants! This will help you stay in reality, thinking clearly, planning better, and give you a peace of mind.
Finally, don't compare yourself to the bigger boutiques and think your $1000 or $5000 is nothing compared to the $20,000 or $100,000 a month someone else is making! It all counts and this is the beginning of something beautiful. Honor where you're at.
If you want to dive deeper in all of this join us in Boutique School - a membership training with our boutique bookkeeping experts to equip you in how to run a business.