Episode 61: From Fear to Strategy: Navigating the Entrepreneurial Roadmap with Katie Hunt of Proof to Product
Katie Hunt shares her path from a creative entrepreneur launching a stationery line on Etsy in 2008. Fueled by a desire for growth, she transitioned to wholesale, even exhibiting at the National Stationery Show. Balancing a demanding corporate job with her entrepreneurial venture, she found fellow creative entrepreneurs on Twitter that helped one another out in their businesses. Katie founded Proofed Product in 2011, initially hosting teleconference calls and eventually evolving into a thriving platform that just celebrated its 42nd round of Paper Camp, a wholesale program.
Moving From Fear to Strategy
There will always be challenges that small business owners face and Katie has had a front row seat to the reactions that have come with change. Katie explains that there are two distinctive paths taken by business owners in response to fear: those who bravely move forward with imperfect but proactive measures, and those who become paralyzed by fear and unable to make decisions. She emphasizes the importance of addressing these fears and highlights the advantages of taking action, even if it involves small, messy steps. As business owners, it is important to move away from fear and panic and focus on strategy.
Decision Making Framework
Katie introduces her four-factor decision-making framework, offering a well-rounded approach to assess choices.
The first factor is time, where the consideration revolves around how much time a decision will consume and whether it will be a source of stress or ease. The second factor is money, evaluating whether a decision aligns with revenue generation and its financial impact. The third component is "heart," addressing the emotional aspect of decisions. Entrepreneurs are urged to gauge how excited and passionate they feel about a project, as this emotional connection is vital. Lastly, Katie underscores the importance of evaluating the potential impact of a decision, both personally and on a broader scale, including its influence on family, business, team, clients, industry, and the world.
Katie stresses the individuality of decision-making, as everyone's priorities and circumstances differ. The key is to strike a balance between strategy, data, and the intuitive "gut" feeling.
Knowing Your Road Map
Katie stresses the significance of understanding what you want for your business and life and how it evolves over time. Priorities change, whether due to personal life developments like having children or shifts in business goals. Keeping a clear vision of where you want to go is essential, as it allows you to build a roadmap and ensure that each decision aligns with your desired destination.
For those who may have neglected this aspect of their journey and feel overwhelmed, Katie suggests the importance of self-reflection. Taking time to identify pain points, sources of friction, and areas that feel out of alignment can be a valuable first step in creating a clearer path forward. This reflection doesn't require immediate solutions but serves as a way to understand what's not working and pave the way for future decisions that better align with your goals.
Numbers are Neutral
A common fear and anxiety many artists have are around numbers, particularly when they are related to finances. However, numbers are neutral data points, devoid of emotion, and should be viewed as tools to make informed decisions. Two key points are highlighted:
Production Costs: It is essential for business owners to have a clear understanding of their production costs for every product they offer. This knowledge ensures that they are making a profit on each item they sell, which is fundamental for business sustainability. Without this clarity, all other business activities become irrelevant because profitability on individual products is the foundation of a successful business.
Perspective on Numbers: The conversation points out the importance of looking at numbers from a positive and celebratory perspective. It suggests reframing the mindset around reviewing financial data. Instead of seeing it as a daunting task, approach it as an opportunity to celebrate accomplishments and wins from the previous month. By listing all the achievements before delving into the numbers, business owners can maintain a positive outlook and recognize the value of their efforts, even in months with slower revenue.
It is also to consider business cycles, recognizing that there will be both busy and slow seasons. Evaluating financial performance year over year provides a more accurate assessment of the overall health of a business. It concludes with the idea that taking a step back, looking at the broader picture, and understanding the natural ebbs and flows of a business can relieve anxiety and provide a more balanced perspective.
Key Takeaways
Fear isn't always negative; a healthy dose of fear can lead to creative solutions and progress. It's essential to recognize when fear hinders progress and balance it with excitement and purpose.
To make informed decisions, you must have a clear vision of your goals. Recognize that your life and business goals can evolve over time, and it's crucial to regularly revisit and reassess them.
Identifying areas in your business that cause friction, stress, or discomfort is essential. Understanding what doesn't work well and finding ways to eliminate or manage those friction points can lead to a more successful and fulfilling business.
Celebrating wins and successes, even small ones, can build your confidence and help to overcome fear.
Numbers are neutral. Numbers are not something to fear or be emotional about; they are data points that help us make informed decisions.
Evaluate your business from a macro and micro perspective. Looking at the bigger picture, such as year-over-year numbers, can provide a more accurate assessment of your business's health and performance.
Katie Hunt is the founder of Proof to Product® (formerly Tradeshow Bootcamp), a business strategist, and mentor to creative entrepreneurs. She is a firm believer in professional development, surrounding yourself with community and pushing ‘go’ even when you might not feel 100% ready.
Wholesale Audio Series: www.prooftoproduct.com/privatepodPodcast: www.prooftoproduct.com/podcast
Paper Camp: www.prooftoproduct.com/papercamp
Instagram: www.instagram.com/prooftoproduct
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