Three Lessons from My First Three Years in Business

After starting my own business three years ago, I've experienced a lot that has changed how I think about being a business owner. Each win and loss (of which there have been plenty of both) has taught me something important that has shaped how I do business and how I see things. Now, as I reflect on the last three years and what has been achieved, I thought it would be a great exercise to share three lessons that have really shaped the journey so far.

1. The Importance of Surrounding Yourself with the Right People

A key lesson from my business journey is understanding the power of connections, the importance of the right team, and the people you surround yourself with. When I started, I was hyper-focused on the business and the unique services we aimed to offer. What became clear over time is that success isn't just about what you do, it's also about who you work with and who you know.

Building a strong team with shared goals and a passion for what we want to achieve has been crucial. Your staff can make or break your business, and I've been fortunate to work with dedicated, motivated people who've contributed immensely to the success that we have had.

Creating a solid network of business contacts, mentors, and peers has also been invaluable. This network has opened doors to new opportunities, provided insightful advice, and offered support during challenging times. No business owner can make it on their own, and having a great team and a bunch of supportive contacts are important for helping your business grow and stay strong.

2. Cashflow: The Lifeblood of Any Business

As an accountant, I always knew that cash flow was important. But it wasn't until I had my own cash on the line that I truly felt its significance. The old saying "Cash is King" took on a whole new meaning. I quickly realised that having a steady flow of money wasn't just nice to have - it was essential to keeping a business alive. You've got to keep a keen eye on your finances and always have a plan B for any surprises.

In early 2020, as I was in the preliminary planning stages, Bianca and I took the step of selling two properties to free up the cash needed to fully commit to starting Wakefield Pacific. Some friends and family may have thought we were crazy, but for us, the opportunity cost was worth it. The cash allowed me to invest what was necessary into the business from the start as opposed to trying to cut corners. It probably also allowed me to sleep a little easier during those early days.

And when it comes to a growing business, managing cash flow becomes even more critical. Rapid growth can often hide cash flow problems until they become serious issues, so staying on top of it is crucial. No matter how great a business idea is, it won't get far without the cash to back it up.

3. No Regrets: Seize the Opportunity

Without this lesson, I wouldn’t be sitting here today writing this. One of the biggest lessons I've learned over the years (both pre and post business ownership) is how regret can weigh you down. It's this deep sense of 'what if' that can stay with you and eat away at you over time. My opinion is that if you ever find yourself in a situation where you think you might regret not taking a shot at something, that's your cue to take action.

This feeling of regret, especially when it comes to opportunities we didn't seize, can really mess with your head. It's funny, but most of us tend to feel more upset about the things we didn't do, the chances we didn't take, than the things we actually did. This might be because the outcome of the actions we didn't take remains a mystery, while the results of the actions we did take are a known fact, for better or worse.

When you're running a business, understanding this aspect of regret is crucial. It taught me that it's super important to jump on opportunities when they present themselves, and not to shy away from taking calculated risks. Yes, risks can be scary, but the reality is, doing nothing because you're scared to take a risk can often be the riskiest move of all.

This isn't to say you should dive headfirst into every single opportunity without thinking it through. But if there's something that aligns with your business goals and values, and you find yourself hesitating purely out of fear, remember: it's often the chances we don't take that we end up regretting the most. So, take a deep breath, trust your gut, and go for it. You'll either end up with success or a lesson. And that's a win-win situation.

As I wrap up this post, I take a step back and realise that these three lessons are key to the foundations upon which Wakefield Pacific stands today. But this is not the end; it is simply a moment to pause as we continue to move forwards. The reality of business ownership is that the learning never stops, and every day brings its own new set of challenges and opportunities.

Onward and upward!

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