Episode Transcript
Nina (00:08.976)
Welcome everybody. In today's episode, I would like to share with you how to avoid the most common.
Nina (00:32.936)
Hello everyone, in today's episode, I would like to share with you how to avoid the five most common and costly mistakes most product-based business owners make when they start off, which could lead to failure if you are not correcting them and what to do instead.
Nina (01:18.428)
Mistake number one.
Mistake number one, what I see most often, or, mistake number one, so what I see most often, and talk about most often with our tribe strategists about is that, whether it's tribe members, is,
Nina (01:45.812)
Okay, mistake number one. Most business owners do not design their business with their dream life in mind and then end up being a slave to their business.
Now what do I mean by that?
Most business owners start their business because they either don't like their job anymore and they're just trying to find something different and are having this dream of endless flexibility, not much work, all this money is coming in and amazingness going on. Or they come from a place of, I have this amazing product and I want to sell it and I want to give it to the world.
And something amazing again is going to come out of that for me. Now here's the challenge with that.
Nina (02:48.108)
If we are not stepping back and thinking about, what is my purpose in life? What do I want to create and give to this planet? What is my gift to other humans? What is my gift to my family? What is my gift to myself? And what do I want to experience? What do I want to get out of being here on this planet?
What is the life that I want to live? What is the, what are the things that I want to do? What are the stuff that I actually want to own or not own? What, what does ideal life look like for me? Because to me, in all honesty,
Why are we working? Most people do work, show up to work, show up for creation so that they have a bigger purpose behind that and see whatever they are dedicating their life and their time to.
as a vehicle to create, to experience, to make, to gift. It is therefore something, the work that we are doing today, the creation that we are putting out today is supposed to serve something bigger tomorrow.
Nina (04:23.08)
but how many people actually think that way? And question for you, have you thought about it this way or have you maybe just stepped into building and running this business and maybe sometimes asking yourself, especially when things are not going to plan or we are not reaping the rewards or we are not seeing the results that we're looking to see, we are asking ourselves, why am I doing this?
then you are making mistake number one because you don't have a why. And that's trouble. Because a strong why, if we know, all right, me building this business now, me right now shoveling this shit, doing the hard things, doing the work that is not sexy, that nobody's gonna praise you for.
That could also sometimes be the wrong stuff. And then you feel like, God, it's me. I just wasted a bunch of time and walked up the wrong mountain. All those steps, all those lessons, all that sometimes feel like grind, but it's a journey, of course, is not going to lead you to anything if you haven't defined what it's for. But here's the flip side.
Here's how you flip this mistake. If you take the time now and ask yourself, all right, where do I want to get to in my life? What do I want to experience? What do I want to create? What would I be really proud of to be remembered for? What is the thing that if I was to make that type of change,
Or was to give that type of health gift or support or just call it magic to a human, to two humans, to an animal. Or let it be a thousand, a million, it doesn't matter. But what is one thing that would feel like, man, if I could just give that to them, I'd feel like life well lived.
Nina (06:46.82)
And if you anchor your business, your steps, your showing up, your goals, your targets, you're pushing yourself out of your comfort zone and eating the frogs and shoveling this shit and paddling frantically and not knowing where you're even going. If that's your anchor point, number one, I can guarantee you much higher chance you will figure it out.
I'm going there even though it's really dark and cold and uncomfortable right now but that's where I'm going because then our mind can help us find a path and you can kind of see in the distance that north star and number two you can then much more strategically design your business as a vehicle so it can fast track you to live that life to create that thing to solve that
problem to make whatever it is that you want to make happen in your life happen
Nina (07:55.544)
again on the flip side if you don't do that you might be creating a business that makes you a bunch of money but you might not be going really anywhere and you might just be busy and working hard and working hard and doing the thing and at the end of the day yes you might be maybe making a little bit more money than in a job but you're still tied to the thing and the thing the business
might not be enabling or allowing you or letting you actually live the life of your dreams. So first mistake and that's also the very first step that I would share with anyone thinking about creating a business, having started a business or busy building a business, to think that through and step back and take the time to map out what is your big goal.
your really big goal, your big creation goal, and then working backwards and making sure that whatever you're investing your time into today is allowing you to get there. And in all honesty, if it doesn't, ask yourself the hard question today.
Should I keep going then?
Or maybe I should get off that horse and think about that my time is really finite. Because if you really want to get to that goal, the time is now my friend to realign yourself.
Nina (09:35.12)
Mistake number two.
Most business owners are not considering what they don't like doing.
what they don't like doing, and then they end up burning out.
Nina (09:55.092)
So what do you want me by that?
When we start a business, there are a lot of tasks that we need to get going, or need to do, that any business owner need to do for the rest of their life, so for the rest of their business journey. And it is very important, before we start on that journey, that we get really clear on what are my passions, what are my interests, what are my skills.
and what are the things that I maybe don't like so much right now but I could see myself falling in love with if I tried and practiced and what is the stuff that you would rather just paint your house from the outside than touching it.
and then be very conscious about whether you, number one, want to go into business and somehow manage. Number two, maybe not go into business. Or number three, find a partner from the get-go who takes on the stuff that you do not want to touch, but have to get done, so you can play in your arena, in your sweet spot.
and can really go all out and make your magic happen in your space. Because the things that you love doing, but they have to get done, let's call them. It is marketing and sales and accounting because you are a product maker and a real geek when it comes to say making candles. But you do not want to talk to customers or do any of that stuff.
Nina (11:44.872)
Well, if you stay by yourself, you'll be the best kept secret and you'll have your warehouse full of candles or your rooms, but nobody will buy and nobody will see it. Because if you don't like doing it and you are not doing it or doing a horrible job at it, this stuff will always stay in your cupboard. What is that point? You will burn yourself up. You will feel so disappointed with yourself.
because nobody knows about your product. And that's solvable, because if we're real honest with ourselves from the get-go and play to our strengths and our passions, then we can go out and kind of be like a kick-off. I need to find someone who loves marketing and selling candles. They love that. They could not imagine doing anything better. And how could I find that partner and come together?
and work side by side, whether that is in a company partnership or on a contractual basis, there are many different options to choose from, but to just do it together and play to your strengths because if two people come together that love what they do and play in their arena to their strengths, I can guarantee you, you will get this business off the ground
Nina (13:12.5)
energy zapping, life depleting.
tasks that you do not want to do. And if you're doing a shit job, and you know you will because it's just not in your DNA, you don't speak the language, yeah? No sales, no marketing language there, if that's your case.
Allow yourself to find a partner and do it together. Because then together you guys can thrive, you can celebrate, you can manage, you can hype each other up and you can find the solutions. Because one of the biggest things in business that we all face as business owners, we are in the business of problem solving. The problems will come at you left, right and center all the freaking time. And if you're not a complete all-rounder,
much easier my friends finding someone who can be the missing slice to that pie. Yeah but don't have the illusion of like it'll be fine you know once it's ready they'll come. Things no it's important to be a little bit realistic about it in my opinion and make sure you can play to your strengths from the get-go because
This business will never end. Marketing and sales will never stop, will never go away, will never be done. So if you know from the start, I can't even create beautiful candles if this sits on my shoulder and kind of breathing down my neck.
Nina (14:56.412)
then the shit in, shit out principle applies, meaning, you bring, your energy gets depleted, it gets shittier and shittier and stinkier and stinkier, you will be more and more grumpy and angry and frustrated, maybe you procrastinate, all of that stuff, it becomes a stinky, terrible mush. And with that energy, do you believe there will be a prosperous business? No.
And then two years later, you'll be one of those posting on Facebook with sad, with the lot of sadness. I will, I have to close down my business. What? Completely avoidable. Okay. And I give you full permission. Find your tribe, find your people. By the way, that was one of the big reasons why I created the Makers Business Tribe, because I'm also not a do it all by myself person.
In my first business, I did it all by myself and I kind of managed and then I hired a bunch of people and they finally helped me out. But it was big grind and I could only do it because I didn't have a baby and I had a very supportive partner. But now being a mom, I think it would be the most stupid thing for me to attempt and for me having built
my own tribe with awesome partners that work on my level and can help our tribe members on many levels and having all of our tribe members who have amazing brains and are on the journey of building the business together, their businesses together. Oh my goodness has changed my life, my friends. Okay. So can highly recommend. Mistake number three.
Business owners have not taken the time to know who they want to serve.
Nina (16:53.584)
and make a product for them that they love.
So what I mean by that.
Nina (17:06.18)
Most business owners, when they start creating a product, they create it for themselves. And they hope people will come and love it. That can work out, but it might not work out.
and you might attract all sorts of random people in that process because we haven't thought about who am I building this product for? Who is it for? Whose problem am I really solving? Who would I love to serve? And who do I also want to continuously bring into my energetic field?
that number one, I want to nurture and give my energy to, but also their energy, I would like to receive their energy.
very important question to ask.
Who do you really want to serve? Who is the favorite human, as they call it, that you would love to gift your product to, that you invest your time for, that you hold in the highest regard? Who is the human that you want to serve, create a better life for, solve a problem?
Nina (18:39.32)
and guide to a better place or animal no matter what. And I have three sub questions here. Number one.
Nina (18:51.892)
Have you walked in their shoes and can relate? Big one, because if we're trying to serve a human but have never really been in the spot, there can be many blind spots that we don't even understand. If we have been there, much, much better place to serve those that are still on the journey. And you have created a product that you know those over there will love.
But you're serving those over there who are still having the pain, the anxiety, the need, the want, whatever that is. This is you already being in this state of harmony and ease, or whatever your state is.
Number two, do you, can you say hand to heart, love and appreciate those humans over there still going through the challenge, dearly and want to hang out with.
And question number three, if those are the only humans that you get to serve in your lifetime, do you feel like your life is well lived?
Nina (20:20.944)
If you cannot answer this question, and you're just really busy on making your product and you're trying to sell it, and now you're thinking about, or who has bought my product, can highly recommend take a day out, step back, and really craft who is that ideal human that you want to do this for, and commit to that human.
and make that human tangible. Let's call that human Nina. Let's call it me. And craft out her demographics and her psychographics. There are many questions. If you just go on the internet, or I can, yes, I will put a link to a really great document that I personally use and have created. And, but then I've been using many times with my tribe members because I just love doing this work. This is so important.
If you, I put, so, sorry, I will put a link, the document of.
Nina (21:26.732)
I will put a link of the document that I personally use in the show notes for you.
Nina (21:43.08)
Mistake number three, most business owners have not taken the time to get clear on who specifically they want to serve. They want to dedicate their time to. They want to solve a problem for.
Nina (22:09.904)
and they start just making a product and hoping someone is gonna buy it and they can't seem to sell it. Because here's the challenge with it. If we skip the step of deciding first, who are we serving? Who is the human that I want to connect with every single day that I want to share newsletters with?
social media with, want to meet at a market, want to meet at a shop, want to answer, respond to customer queries too, want to pick up the phone again and call the post office and see where the parcel is, want to try and get the very best ingredients for, will make the product bigger, better, faster, stronger, whatever that is.
to help them live their best life and serve a problem. If we don't know that, we can get stuck and stubborn about a particular product that we want because we've designed it for ourselves in the absence of the other person. And once we put it out there, we might not really get first number one, the response that we were expecting because it's not selling like hotcakes. Number two,
really muddled responses and a big pool of random people who are kind of interested.
So what to do instead?
Nina (23:49.076)
First thing I'd like for you to do a little test and see, number one, right now, are you serving someone that you've once been, so you have gone through their journey and come out the other side, so you know exactly what they are needing at their part of the journey? Number one. Number two, do you love, can you wholeheartedly say, I can see,
the exact human that I'm serving, and they're all kind of the same persona, and I love them dearly, and I could not imagine doing it for any other human, and whenever I connect with them, it gives me energy and I thrive on this pool of humans that I'm attracting. And number three, this pool of humans that I'm attracting, if those are the only humans that I get to serve in this lifetime,
I feel like my life is well lived. If that's the case, you're on the right track. If that's not the case, get back to the drawing board right now. Because again, the humans are never going away. If the humans that you're serving don't feel like the humans that you want to hang out with, it'll create a massive challenge and hurdle for you to get your business off the ground.
Because there is no energetic magnetism. We need to create that energetic magnetism. Number one, because if you want to hang out with those humans and you're everything that you do feels easy to serve them and constantly you just feel like you're keep coming together naturally, your business will thrive. If it feels really awkward, like a really awkward dance and you actually don't want to dance with those humans and they're all like a bunch of hotch
saying this in the kindest way possible, we are in trouble.
Nina (25:52.124)
But also, what if the needs and wants of the people that you do serve right now change? But you have never asked yourself who are the people that I'm actually going into my personal battle with, that I want to serve no matter what, that I will get frustrated when I don't do a good job because I've dedicated my life to these humans.
If their needs and wants change, but you haven't thought about those humans, you get stuck with your product that nobody wants.
But if you design your business humans first, favorite humans first, it will be fine for you to shift and change because you'll be constantly just designing and creating and making and marketing for them, for the people that you dedicated your life to, like me right now. I am doing this podcast for my favorite human. Her name is Sarah and I can see her.
in my mind's eye every single day and I have written many pages about her and I'm doing this for her and I'm doing this for past Nina who's been over there a few years ago for now I'm here but I'm doing it for myself past Nina and it's now Sarah I have that persona but I'm building the Makers Business Tribe and this podcast and everything for her because I want her.
Huh.
Nina (27:30.932)
to succeed in her business. I want her to make a real difference on this planet. I want her to live her best life. And whatever she needs, that's what I'm gonna do. If she doesn't need the Makers Business Tribe anymore, if she doesn't need this podcast, but she needs a book or she needs a, whatever that is, I'll do it for her because my business dedication, I've signed up to serve her.
and puts me in a much more powerful space. Because as long as I keep connecting with her and I keep listening to her and I keep dancing with her energy and her needs and wants, what I've got to offer is what she wants by default, because I'm dancing with her. I'm listening, I'm wanting to listen. And I'm not just cooking my little product over here and then be on stage and talk to my audience and...
Hopefully the audience hears me. No, no, no.
I do it in response, I respond to my human.
Nina (28:42.324)
So start with your human first. And then design your product in response to her, to him, to them. And be really clear on that human. Not just someone in the distance, but be able to draw them. Yeah, you know what they eat for breakfast, lunch, and dinner. You know what shows they watch. You know them deeply and interconnectively. And you can speak their language. And when you speak, they'll listen up. No.
Goodness me, they know what I want. Yeah.
because you've done your homework and you are continuously gifting to them what they need. And that way you're also not selling to them, my friends, but you're gifting to them. And they are either ready to receive what you have to gift or they're not ready. And that's okay too. But you've dedicated yourself to serve them. You've not just dedicated yourself to make a product and push it out and get some money. Yeah?
Very, very different. Mistake number four.
A lot of business owners and new products that come onto the market, especially that are still being sold at a market or like just in small retail shops, they tend to skip on branding and product packaging.
Nina (30:09.168)
so their products do not stand out and cannot be priced for what they are really worth.
and that is stupid. My goodness, if you have created an amazing, let's call them candle, that just when I open that lid and I smell it, and I'm just like, oh my goodness, it transfers my mind into a different sweet. I want it right now. But if the branding, meaning the logo, the font, the...
the material, the packaging is also part of the branding, maybe the logo, the name, and the material wrapping the raw candle. If that doesn't communicate to my selling psyche part in my brain, high value.
I judge the product by the color. And I immediately go, oh, this looks maybe like a $30 candle.
Nina (31:16.956)
But we all know, I assume we've all bought a really nice candle, a really nice candle. That is, and a candle, it's just some wax and some oil, but then it's put into a packaging. And that packaging, the branding is part of the packaging, communicates to me. This is super premium. It doesn't just smell nice, but like the whole shebang, this whole ex-
of that candle. When I touch it, when I smell it, when I look at the packaging, when I see this whole beautiful amazing thing, if that communicates to me, it'll dial up my home, it'll communicate luxury, it'll communicate a certain lifestyle, it just gives me this feeling of, wow!
Nina (32:12.56)
You can easily convince me to pay for the same candle, $65 or $75. Put a crystal in there that gives you another $10 on top.
Nina (32:24.156)
because it's the branding and the packaging, the thing that wraps around the product that presents it, whatever presents your product, can take our value perception to whole new level, to whole different arena, and with that can really help you to...
not just sell and kind like make a few cents profit if that?
but being able to sell it, give your retailers a proper profit margin, give yourself a proper profit margin and ultimately with those profits, being able to grow your business. And it is very, very smart to do it from the start because at the start you don't have much money. Branding and product packaging does not cost the world and if you're working with an expert,
They can smash that out very easily once you've done some detailed work on your favorite human. They will need that information because a good branding and packaging designer will design that in response to your favorite human. There you go, there's another reason why you're gonna need to do go human first.
If you skip that, you end up with a very small profit margin, potentially. That means you have to sell a lot of candles in order to make a little bit of profit because you need that profit to dial up everything else in your business, to hire a second person, to get more, um, more effective with your production, to outsource that, to, um, to be able to
Nina (34:16.316)
buy more ingredients and so forth. You need money. Branding and product packaging done right will get you more returns much, much faster. Plus, if your branding and packaging is designed in direct response to your favorite humans, it will start selling their hotcake a lot quicker. Now with really good margin supply to that, your business will skyrocket so much faster than if you tinkered.
with some average type of packaging for a long time and just a few people buy. Because all you're doing is you're probably burning through your personal cash, you'll feel disappointed that your sales are not where they need to be, but then you're kind of like, ah, I don't wanna spend the money, I don't wanna spend the money. Dude, this is money you wanna spend, because you wanna think about the return and growth possibilities of that.
And if you truly believe in your product, then wrap it in a way so it freaking pops and not dowels down the magic that's really inside. Because there are only very few people out there who pay a high price for a product that looks low price.
Nina (35:37.732)
And unless you're super lucky in finding these people, you're really skipping.
at the, your work at the wrong end. Because if you're serious, put your money into this and it'll help so much in getting your business out and create raving fans and for you to generate the cash flow that you need in order to grow your business. And mistake number five, let's talk money. Mistake number five. Most business owners avoid.
setting their budgets for their monthly and non-monthly expenses. Don't do their cost of goods and they kind of use their finger in the air pricing.
Most of the time, underpriced, most of the time, do not realize how much money they're spending and how high their costs are and then end up, no matter how hard they work, not having any profit, can't pay themselves, struggling months to months and have no idea what their breakeven point is, how much product they need to sell so they can start paying themselves, whether they're ever going to make a profit, nothing.
And again, if you are trying to get serious about it and want to turn your side hustle into a business.
Nina (37:10.312)
This is work that can change your whole business so quickly. Because number one, when we take the time, and yes, it might not be fun, okay? Eat the broccoli, god damn it, my friend, because it's good for you. If we take the time and break down what are my monthly costs and what are my costs that are kinda like coming up every quarter, every year, every six months and so forth in my business.
and have a full understanding of these costs. Well, first of all, I know, well, how much does my product need to pay back so that we can cover these costs because that's your money machine. Your product is your money machine. Yeah. Number two, you can look at all of those costs and really ask yourself, can any of these items do better? Have a subscribe for a tech tool that doesn't do anything. Am I spending money on something I'm not even using?
and do all of these items that I'm giving money to, do they work as hard as they can to help my business grow? And I can guarantee you, there might be some stuff where you're like, why the fuck am I paying for this? Remove it, yeah? And become more hard ass. If you're not, but that is only possible once you break this down and you start looking at those numbers.
If it just kind of like keep coming out of your bank account, it just keeps coming out and you feel like you got no control. It just like gets taken from you. But once you have a budget, the power lays in your hands, whether you're going to pay that or exit. That's number one. Number two, in order for you to calculate what is the cost, the real cost of making this product, you need to know your material costs. You need to define your labor costs. You need to know your overall expenses. If you have your budget.
You can apply percentage in your expenses and you can actually really calculate what does it cost me. I will put a link to a cost of goods calculator in the show notes so you can play with that. Same with the budget sheet.
Nina (39:17.616)
And then it'll be much easier for you to go further and scientifically calculate what pricing for wholesale and retail do you need to set in order for you to cover your costs and have a profit applied. Very easy. You can calculate that forward. I put a link in the show, not my friends, to calculator. Super fun and easy.
Because then you can also see, well, how many of these candles do I need to sell at that price in order to, first of all, get to a full-time income, get to a certain profit that I want to make, so I can make this next big investment, and so forth. It will be easy. Because then you can decide, okay, should I keep selling at markets? Maybe should I tap into wholesale? Should I start selling online? Should I create a referral system? Should I be...
going all in on social media, whatever that is. Any business strategist can then sit down and help you much, much easier to find a strategy that's right for you based on where you want to get to. If you do not calculate that, I have seen so many businesses having no clue about where their money is going, how much they're making and any of that stuff and say, oh, this is too hard because I'm a maker, but you're broke. They're broke.
and they're burnt out because they're working really hard and they got nothing to show for it. That sucks.
Excuse my language, but stupid man. Like if you have a big goal, if you've done number one, you've mapped out what you want to create, you know who you want to serve, but you also know your life that you want to create, you owe it to yourself. Spend a day to get this right. And you, the trajectory of your business will massively change. I can guarantee you this. Yeah. Otherwise you call me. You challenge me.
Nina (41:21.636)
Okay, with that my friends, those are the five mixed mistakes that I really hope you are not making. If you feel like you are on this right now and you don't know how to get out, I will also put my Calendly link into the show notes. I'm gifting everyone who's listening to the end a 15-minute free strategy conversation with myself and we can see maybe we can quickly get you unstuck.
Thank you so much for listening. I hope this was valuable. Please share it far and wide. Click on all the show notes, download all the tools, do the things, avoid the mistakes, and build the business of your dream. Bye.
