📈 7 MUST-READ Startup Lessons

2023 was a HUGE learning year for my startup. We made some detrimental mistakes which will lead to MASSIVE progress. We have a $1.5m revenue goal in 2024.

Here are the top 7 lessons we've learned:

1. More Revenue ≠ More Profit

When we were smaller, it was easy grow incrementally and maintain profit margin. But then we made a leap from $270k (2022) to $518k (2023) and our margins shrunk in half. We were more focused on revenue than profit. Never again.

2. Good vs. Bad Markets

We expanded to a lot of markets with little demand for our service. For example, Towson University. Towson has 89% in-state students and 26% of students living on campus. Not a good market for a college summer storage business. Be sure to do market research before starting / expanding your business.

3. Good Hires vs. Bad Hires

In 2023, we wanted to grow so badly that we made some questionable hires. We paid for it in stress and reduced profits. In an upcoming newsletter, I will share my new hiring process, from start to finish.

4. The Importance of Tech

To scale (and scale profitably) you need to put systems in place that automate your business. You cannot simply hire more people and expect to maintain margins. Tech is essential.

5. The Importance of Delegation

As recently as 2022, I was doing almost all the backend billing and management myself. As we’ve grown, it’s become impossible to do all these tasks. I've had to transition from my role as "Player" to a new role, "Player / Coach". Now, I’m attempting to make the transition to “Coach”, and completely remove myself from the Day-to-Day operations.

6. Vetting Vendors

We had a mishap that cost us tens of thousands of dollars. Our vendor made a mistake that effected our company dearly. Find the right vendors and stick with them.

7. Spend Money on Things That Move The Needle

In 2023, we decided to improve our offering by providing free packing materials. We spent ~$30,000 designing, manufacturing, shipping, and storing custom boxes. Unfortunately we did not make this money back. It didn't move the needle!

Keep these lessons in mind as you run your business. Hopefully they will save you money, time, and stress during your entrepreneurial journey!

Whenever you’re ready, there are 3 ways I can help you:

1. The Startup Toolkit: This comprehensive course provides you step-by-step directions for how to launch and grow your startup. Through trial and error, I’ve developed these methods to grow my startup to $518,201 annual revenue.

2. 1-on-1 Startup Consulting: Serious about launching / growing your startup? Get the personalized help you need.

3. Promote your business to 1,250+ subscribers by sponsoring my newsletter.

Cheers,

Collin Rutherford

PS. When you’ve had a headache for 5 mins.