Here’s a list of ways that I’ve almost killed FreshBooks over the years:
Thinking we had to move faster than we did - I remember back in 2005 feeling that if we did not blow our lights out and spend every penny we had on marketing immediately someone would obliterate us. I had this impending sense of doom for years based on our speed. Turns out I was wrong.
Placing my faith in a spreadsheet - I’m a firm believer in rocking a spreadsheet. It gets you thinking about your business. But trust me: Whatever numbers come out of your Excel jockeying are wrong.
It’s easy to stare at a spreadsheet and say, “that’s it! I totally get this business… I understand how it all works and look at that year 5 revenue!” The reality, though, is that it will take 10 years to get there, cost you twice as much as you thought, and you’ll probably be running a totally different business by the time you get there. There’s nothing wrong with that – as long as you don’t fool yourself into believing what the spreadsheet tells you.
Thinking we had to spend more than we did - There is something about the act of spending money that breeds confidence. However, just because you’re spending doesn’t mean things will work out like you modeled them. Nor does it means you are learning a lot or being efficient. But all of these things are crucial when you are building your business.
We like to try things and look for “signs of life” with our marketing before we increase our spend in any medium. It’s always the right approach because, no matter how much you might want it to be true, there are no silver bullets.
Placing my faith in consultants -Nobody cares about your business as much as you do. This includes exceptionally smart consultants, who come armed with fancy words and glowing references. You are in business because of the way you see your opportunity – and no one will ever possess your unique perspective.
So don’t kid yourself into thinking a consultant knows your business better than you. At the same time, stay open to their advice and take it into consideration as you make decisions - just don’t bet the farm on what they think you should do.
Underestimating word of mouth - This one is sort of tied to my first item. It takes *years* to generate word of mouth – it’s a slow build, but slow burning fires burn the hottest. So be patient and do your best to take care of your customers/users even if you can’t find a way to measure the ROI.
Believing we could not get this far without doing “x” - I remember talking with people in 2004 who believed we could not get anywhere without signing a “deal” with a “partner” or taking “VC money”. Here’s my advice: sign the right deals with the right partners at the right time for the right reasons. You can build a business without being forced to work with the wrong people at the wrong time for the wrong reasons.
Opportunities will present themselves if you keep your feet moving and you string together a series of small successes. You need to decide what the right deals are for your business and when they are right for your business. I’ve learned to spend 80 percent of my time thinking about what not to do, instead of all of my time thinking about what we can do.
Doubting ourselves too much - Over the years I’ve met a lot of smart people and I’ve invited them to tell me what they think. For years people did not “see it” and that exacted a toll on my confidence.
Doubt is born out of fatigue and loneliness, and there is a lot of both when you are running a start up. Hang in there and keep your feet moving – there’s still a lot of time for you to change the world.
Now don’t get me wrong – there’s still plenty of time for me to kill FreshBooks. This is a list of what I’ve learned so far and if you ask me, we’re still just getting started.
Image by Tammra McCauley via Flickr.
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