2013 American Express Company. All rights reserved.

19 Mistakes I Made As A Small-Business Owner

Erika Napoletano
Columnist, American Express OPEN
Ever feel stuck? Erika Napoletano heads a brand strategy and entrepreneurial coa
ching firm that helps people get UNstuck and over those annoying problems that k
eep them from being awesome. TEDx talker, columnist, award-winning author.
Have you ever felt as if you were playing one big game of fling-the-spaghetti-on
-the-fridge-to-see-what-sticks? Business is like that.
There are days (sometimes years) when we wonder if anything is working out as it
should. We'll look at our bank accounts and laugh. (You know, the kind of laugh
that makes people in a coffee shop move their stuff.) We wonder when well be as
successful as those people, you know the ones on the covers of magazines, the keyn
ote speakers, the folks with book deals and the ones who get interviewed here, t
here and everywhere.
Today, I want to help you put down the spaghetti and step away from the fridge.
I want to help you find your version of success as a small-business owner. So I
m sharing with you the screwups I ve made along the way. This way, you can skip
making the same screwups I made, and make your own. You ll learn from them as I
did these, and you ll be that much closer to your own version of success.
Now, isnt that a nice gift to give yourself this holiday season?
All business isnt good business. Not by a long shot. When youre starting out or ti
mes are lean, its easy to take any business that comes your way in the name of ma
king your monthly nut. But, really, that just makes you nuttier, it s business y
ou don t want for a reason, and in the long run it s not helping you move forwar
d.
You can say no. To
nding. You can say
rs vocabulary. It
"squirrel moments"

business you dont want, to that conference that everyone is atte

no to it all. No is the most powerful word in a business owne
keeps your eye on the prize and away from those all-too-common
that distract us from our purpose.

Treat trade just like paid business. Any time money is supposed to change hands,
its business, even if money doesnt actually change hands. Stop hoping to get a fa
ir shake when you engage in trade. Create a contract, get it signed and make sur
e both parties hold up their ends of the bargain.
Get it in writing. Did I mention make a contract and get it signed? A simple agr
eement goes miles to making sure everyone in an arrangement is happy. It doesnt h
ave to be rocket science, but it does have to make both parties feel they re eac
h getting a fair shake.
Learn the difference between cheap and great value. If I added up all the coin Iv
e wasted on quick fixes and cheap solutions in the past five years ... Id be depr
essed. Cheap usually ends up getting replaced sooner rather than later. Valuewhil
e it might cost a bit moreis done well. Done right. And done best for your brand.
Value lasts. Think about that when youre facing cheap in the face. And dont train
your customers to buy on price, either. Or else, theyll never pay you what youre
worth.
You cant make money if you
finances together. You know
I know you also dont want
it. Figure it out. You can

dont know where your money is going. Get your business

theyre a mess and I know you think you can do it all.
to see the reality of your financial situation. But do
save a ton if you know full well where your cash is

going.
Spend just as much time outside your industry as you do in it. Whatever youre rea
ding about your industry, thats fantastic. Splendid, jolly good job! Now, put it
down and get out of your industry, leave the daily grind behind, and learn more
about amazing people who are doing amazing things that have nothing to do with y
our industry. You ll be surprised on how the ideas start flowing.
Stop glamorizing failure. I hate the phrases fail fast and failure is not an option
. You know what? If you keep failing, theres a reason. And failure is always an op
tion. Your job as a small-business owner is to fail differently and less spectac
ularly as time goes on. More successes. There are no annual awards for the bigge
st failure, and if there were, would you really want to be nominated?
Speak English. No, this isnt a call for a nationalized language. Speak English is a
bout using words that your audience understands and make sense. Buzzspeak is for
bees. And while youre at it, speak less about what you do and more about how you
r audience will feel when they experience what you have to offer. Thats what youre
really selling.
There are things I downright suck at. Same for you. What stinks is that those th
ingsthe ones we suck athave to get done or business wont get done. Admit something
is not your cup of tea and then hire someone good at it to do it. Time and money
best spent. This way, you can do things you love doing, and are really good at.
Dont believe the hype of the Internet. Not everyone is as successful as they soun
d on Facebook. Blog subscribers arent the only metric that screams success! I wish
Id spent less time worrying about all the success that everyone else seemed to be
having and more time defining what I would consider to be successful and why. T
hen I would actually know it when I accomplished something. Ohand its okay to be p
roud of what youve accomplished.
Manage your asks. When youre asking others to help build your business, keep thos
e asks in check. If youre not paying, the list should be short and the ask small.
And try to keep those asks from sounding like a part-time job for the person yo
ure asking. Simple, small requests accompanied by a gracious thank you note (mail
ed, please) will go further than your diabolical and complicated plans for world
domination every time.
99 percent of the time, its my fault. Yep. Its not my client or customers fault. Its
not the Internets fault. It certainly wasnt my banks fault my account was in the r
ed. Its all my fault. I wish Id copped to that sooner. Blame is a waste. When thin
gs go wrong, youre generally the one to blame. After all, were the ones who built
the environment and allowed those things to happen.
Strategy is a higher priority than spending. We can buy anything on the Internet
, including a gazillion courses and tools and plug-ins and services that will ta
ke us (instantly) from zero to hero. Naturally, they all come with a cost. Stop
spending and start strategizing. Every dollar you spend should have a goal its cl
early working toward. If it doesnt, then shut the wallet and get back to strategy
. Be more Trojan Horse than Monty Python Trojan Rabbit.
Youre building a community as much as youre building a business. You can build all
you want, but without repeat clients and customers, youre building for naught. G
ive people ways to interact with and share your brand. Theyll do it. And meet you
r customers where they are, instead of asking them to come to where you feel mos
t comfortable.
Other people are the most important people in your business. Without those peopl
e, you dont get to do what you love every day. Clients, employees, vendorsthey are

the reason what you run ... runs. Never forget it, and above all else, start li
ving and breathing this: Running a business is never about you.
Hire people, not paper. Hire people who are just as invested in your brands succe
ss as you are, if not more so. Thats more than education and work experience. Its
attitude, enthusiasm and work ethic. Ask for referrals, check them diligently.
Trust your gut. Its never wrong. Ever. Turn up the volume knob on your heart and
turn down the one on other peoples voices telling you what you should be doing.
Owning a business is supposed to be fun. This is a glorious ride! For all its up
s, downs and sideways, owning a business is an amazing asset to a life well live
d. Just dont forget to live and have fun. When it stops being fun, its time to sta
rt making changes. Remember your gut? Start there and find the fun again. And its
okay to shake things up every now and thenyou ll be left with the pieces worth t
aking, and a much lighter load to carry.