8 harsh truths about running a business

Starting and growing a business is an exciting and rewarding journey, but let's be honest - it's not always easy! I recently started to mentor some brilliant small business owners who are all at completely different stages of their journeys. It's made me realise some harsh truths about running a business I knew from many years of entrepreneurship myself and running Martha Brook, but that might be hard to admit. These are all things that can be tough to hear, but facing these truths head-on is essential if you want to build a thriving, sustainable business.

1. If you don't have a plan, you'll end up somewhere different to where you intended

Do you have a business plan? Do you know what you are striving for over the next three years and your ultimate goals? Do you know your strategies to achieve these goals? One of the biggest mistakes that entrepreneurs make is failing to create a clear and detailed plan for their business. Without a plan, it's easy to get sidetracked by distractions, lose focus, and end up somewhere different to where you originally intended. 

For me, having an annual business plan is one of the most rewarding parts of running a business. It gives me a sense of purpose and direction, unites my team and helps us all know our goals, strategies, and tactics. It also means we can have regular check-in sessions to keep us on track and tackle any curveballs!

If you are unsure where to start with pulling together a business plan or anything in this blog post, find out about mentoring with me here.

2. You can have the best product in the world, but that won't make people come to buy it

Haven't we all been guilty of this? Whoop, I have a brilliant product! It will fly off the shelves! Only to find that you barely sell any at all. The harsh truth is that running a business is much more than having a great product or service.

If you run an e-commerce brand, this is even starker. There are millions of websites in the UK. What is going to make someone come and find you? It is essential to have a solid marketing strategy in place that allows you to reach your target audience and persuade them to buy your product.

In addition, you should know that the decision to purchase is based on much more than people hearing about your product. Are you connecting authentically with your customers, showing them what you stand for, building a relationship with them and giving them a reason to want to buy from you?

3. Running a business well does not mean you have to do everything yourself

Of all of the harsh truths about running a business, this one might be the hardest for you if you are a perfectionist like me! Repeat after me: if you want to grow, you have to let go.

In your business, you should do what you do best and outsource the rest. Yes, if money is tight, you will need to take on more yourself, and certainly, at the start of your business, you might be juggling all the plates! But, as you grow, you need to work out where you add the most value and be willing to delegate tasks to others; otherwise you will only be holding yourself back. This doesn't necessarily mean taking on a whole team! It could be external service providers, freelancers, or whatever else you need to free up your time.

4. Turnover does not equal profit or cash flow

Hands up, who found this a bitter pill to swallow? Sadly, turning over more revenue does not always mean you will make more profit, as a larger turnover often means taking on more costs. And having a healthy turnover does not mean you will have the cash in any particular month to buy what you need!

To run a successful business, you must focus on generating sustainable profits and managing your cash flow effectively. This means regular reviews of your margins and costs and forecasting your cash flow by month. I know it's not fun, but ignore it at your peril!

5. Investing money is not always proportional to sales growth

It's easy to fall into the trap of thinking that investing more money into your business will automatically increase sales growth. However, this is not always the case. I have seen many brands throw money at launches and sales channels, not to make any money at all!

To achieve sustainable sales growth, you need to invest your money strategically. Ask yourself, where is our growth currently coming from? What are my customers telling me? Look at what activities and products are currently profitable and scale these. Invest wisely and focus on activities that are most likely to drive results.

6. Marketing is not a single activity, it is showing up regularly and consistently

It is not enough to send a single email, write a social post or run one advert. You may have heard of the marketing 'rule of seven', which is that a customer needs to hear your message at least seven times before they will finally take action and buy from you.

The good news is that modern marketing channels make this a hell of a lot easier than it used to be. Through digital marketing, such as social media, you can get your messages across and build a connection with your customers, leading to sales. But, and here is the harsh truth, you have to show up regularly and consistently for this to work. It's not enough to do one post every few weeks and then disappear!

If you need help with an engaging content strategy, book an hour with me, and we can plan the next month together!

7. If you aren't clear about your point of difference, then neither will your customers be

Can you tell me in a nutshell what your most significant point of difference is? Is this clear on your website, in your social bios, and anywhere else that represents your brand?

One of the key challenges of running a successful business is standing out in a crowded market. Unfortunately, too many entrepreneurs have not articulated clearly the 'why' someone should buy and how they can provide value to customers that other businesses can't. If you aren't clear on this, then neither will your customers be.

8. Moaning about declining sales channels will not make them turn around, only action will

I know, we all love to have a moan! And it is particularly frustrating when you sell on external sales channels you have no control over. BUT moaning just creates a load of negative energy that won't help your sales!

There are always things you can do, even in a tough market, to get business growth. Whether that is doing something different on the sales channel in question or finding totally new ways to generate revenue and reach your target audience. It's nice to think that someone else will come up with a solution or that sales channel will turn around, but ultimately the best thing you can do is take action yourself.

It’s fair to say that building and running a successful business is a challenging journey, filled with harsh truths that can be tough to accept! But by acknowledging these truths and using them to your advantage, you can absolutely increase your chances of success and build a business you can be proud of.

I'd love to know in the comments which of these truths hit home to you. Are there any that are particularly hard to hear?!

P.S. If you'd like 1:1 help with anything discussed in this blog post, discover mentoring with me here.