As 2023 draws to a close, I find myself reflecting on the year it was. Like any other year, it had its share of highs and lows. I choose to focus on the positive moments and learn from the negative ones.
Before I share my business lessons for 2023, I want to take a moment to highlight some of the memorable experiences I had this year. Since I started my entrepreneurial journey, it has always been a dream of mine to be recognized as one of the Mail & Guardian 200 Young South Africans. This year, that dream came true. It was made possible by the incredible work we did with the 2nd Annual Top 16 Youth-Owned Brands Awards.
This event was preceded by the inaugural Festival of Youth-Owned Brands, which took place at the prestigious Sandton Convention centre in June. The event was a spectacular display of Youth Excellence held at the richest square mile in Africa. It was a spectacular showcase of youth excellence. More than 70 brands presented their products and services, and the platform itself created over 100 direct and indirect job opportunities. This project stands as the highlight of my career by far.
These are my top 5 business lessons for 2023:
1. Don’t take their word for it.
The truth behind the adage “actions speak louder than words” becomes evident in this case. Whether its new recruits or sponsors. People make promises that often they don’t keep. When it comes to recruiting, it’s crucial to go the extra mile by contacting references and conducting thorough background checks. Many individuals tend to over sell their capabilities and never deliver. Imagine having a PR account manager that cannot write a press release?
When it comes to sponsorship, if they haven’t signed a contract or sent an email confirming their participation, you don’t have the sponsorship. It doesn’t matter what they say in meetings or calls.
2. Not all clients are good for your business
I know it sounds counterintuitive to say not all clients are good clients. I’ve been in this business long enough to recognise that some clients can derail your business from growing. These are clients who ALWAYS scope creep, ask for discount, question your pricing and never seem to be satisfied with the results. Sadly, dealing with such clients rarely yields positive results.
3. Don’t bank on future earnings
If the money hasn’t been deposited into your bank account, don’t rely on it. I’ve learned from my own errors of making critical financial choices based on money that was owed to me. This approach proved to be detrimental when clients failed to pay on time or as promised. To avoid unnecessary stress, it’s best to make decisions based on the cash you currently have available.
4. Business is not fair
As a business owner you need to be comfortable with the fact that you will not always be treated fairly. We invested many hours and resources to develop a proposal that a potential client requested and never received feedback even after multiple attempts of solicitation. Some clients took our ideas from the proposals we shared with them and implemented the ideas with other agencies. We’ve had big corporates asking for discounts when our prices are already way lower than the major agencies. Our emerging business is placed on 60 days payment terms when they know that cash flow is the number one reason why many businesses fail. It’s unfair but that’s business.
5. Rejection is your friend
When you run a business, you need to be comfortable with rejection. This year, we sent out more than 500 proposals and less than 10% of them were successful. Despite our efforts to retain employees, we’ve witnessed some leaving for different reasons. The ability to stomach rejection is key to continue to pursue the grand vision.
In conclusion, business setbacks are valuable lessons, not failures. Successful business owners can attest to this. It’s not about how you start, but how you navigate challenges and reach the finish line. I can confidently say that I have emerged triumphant in 2023 and am eagerly looking forward to starting the new year on a positive note. What was your biggest lesson in business this year?
