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Every business owner knows that the first few years in business are far from … glamorous. (Read: caffeinated running, instant noodles and weird sleep.)
However, amidst all the unpredictability of running a business, one thing is certain: you will succeed mistakes.
But this is nothing to be afraid of – mistakes are actually golden opportunities for you to learn something new and win valuable experience. Plus, if you don't make mistakes and try new things, how will you ever know what works and what doesn't?
The most successful business owners are not the ones who AVOID making mistakes; they are the ones who know how to learn from them and come out stronger.
I'd like to say I made it to seven-figure entrepreneur status without a single bump along the way, but… I'd be lying. So if you were to ask me the biggest lessons I've learned from starting a business (that I wish I had known from the start), these would be my top picks.
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Lesson #1: Know your numbers (and be realistic about them)
The sooner you know which numbers matter, the sooner you can track them and understand what they mean for your business. Many entrepreneurs focus on the surface level metric such as social media “likes” or the number of subscribers to their list. But if it doesn't translate into sales, it doesn't do much to support your business.
Once you know what numbers to examine, it's essential to be realistic about them. For example, expecting a 50% purchase rate from 100 subscribers may be unrealistic if the typical conversion rate in your industry is between one and four percent.
Of course, your numbers will be specific to you, so you need to see where you are and what numbers you can adjust to start increasing those percentages.
To stay on top of these fixes and their results, you should watch everything of your measurements, and you should look at them regularly. One of the biggest (and most expensive) lessons I've learned is that checking my numbers on a monthly basis just isn't enough.
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After hearing from my ad agency how amazing my cost per lead was, I gave them the green light to grow. But without keeping a close eye on my numbers, we ended up overspending by $40,000 with zero sales to show for it. If I had checked my numbers every week, I would have noticed the problem sooner and adjusted our strategy before the losses piled up.
Yes, it was a painful lesson to learn – especially at a time when the business was seeing excellent growth – but it was necessary to improve my processes. Now, I check the numbers every week and my operations manager comes in every day to catch any problems with the ads or landing pages.
Lesson #2: Hire before you can afford to hire
Many of us are guilty of thinking we need to generate revenue first before hiring a new team member. And I can totally understand why – in the average consumer's lifestyle, it's very normal to save up for something and then buy it.
However, as a business owner, you must approve one ENTREPRENEURS mind set. You need that person arrive future income level. You must hire at scale; you are not on the scale to hire.
It's very easy for our plates to become overloaded and before you know it, it becomes very difficult consider going through the hiring process. Thinking of taking a test, writing the job description and sifting through applicants… on top of your already growing to-do list? No chance.
Leaving hiring until it's too late—until you need help—you'll inevitably end up saying, “I'll do it myself.” But this is not a wise move for the long-term success of your business. You need space to be able to think and work on things that only YOU can do. You should be looking to outsource anything that doesn't belong to a CEO sooner than you think.
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Lesson #3. Hire for the role, not the person
In the hiring note, don't forget to select your team members carefully, as they can make or break your business. People often say, “Don't hire for the role; hire the person.” When you get the right person, they can do almost any job, right? But, as I found out, it is not completely so.
With a more creative mind, I knew I wasn't the best person to handle the systems and processes in my business. However, when I started looking for an operations manager to ensure the business ran efficiently and effectively, I wasn't specific enough in what I was looking for.
You have to really understand the traits that a person should have forward bringing them to your team. Creating (paid!) tests before you hire someone (or even within the first trial period) can help ensure that your new team member has the qualities you're looking for.
Because I didn't nail it JUST what I was looking for, I had to go through the (quite painful) process of letting that employee go, which is never easy.
Now that the team has strengthened it pre-employment processwe have an effective system to understand how someone's mind works before we hire them, so we know they will be right for the role.
The longer you are in business, the more you realize that mistakes are a natural part of the process.
Building a successful business doesn't happen overnight. It takes time, lessons learned, and most importantly, great growth as a business owner.
But with a stable sales system and reliable team members, you can build a strong foundation to navigate challenges more effectively and achieve lasting success.