How We Transformed a Part-Time Startup into a $90,000 Venture
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Chapter 1: Our Journey Begins
On February 8, 2021, we officially registered our business, Red Steel Creative. This milestone marked a significant leap towards our shared aspiration for financial freedom. Yet, it was also a daunting step into the unknown, with no assurance of success in launching something from the ground up.
We were determined not to merely join the ranks of web development and marketing agencies but to create a venture that would fulfill our personal objectives of financial autonomy and flexibility while providing meaningful services to our clients.
In the 18 months that followed, through relentless effort and commitment, we managed to elevate our revenue to nearly $90,000—all while juggling full-time jobs. While this may seem modest to some, it has enabled us to eliminate debt, save for the future, and invest in additional business ventures currently in progress.
We believe that anyone with a passion for pursuing their dreams should take action. Hence, we wish to share the insights we've gained and the strategies we've implemented, hoping to motivate you to embark on your entrepreneurial path and avoid the pitfalls we encountered.
We initially lacked direction when we launched our business. Red Steel Creative was an idea birthed amidst the pandemic. Frustrated with unappreciated efforts in low-wage jobs, we made the bold decision to start our own company in December 2020 after nearly eight months of pandemic-induced uncertainty.
Chapter 2: What Worked for Us
Initially, our first steps included brainstorming a name, securing a domain, and creating a basic website. Utilizing our graphic design expertise, we crafted our branding, which later garnered a Hermes Gold Award the following year. We also articulated our company's elevator pitch, established social media profiles, and began marketing ourselves.
At this stage, we had no clients and were largely inexperienced, but we were driven by a desire to assist businesses like ours in thriving online by delivering high-quality web development and marketing services.
Through trial and error, we learned what strategies worked for us and what didn’t. Below are some key takeaways from our experience:
Section 2.1: Identify Your Niche
One of the early lessons we wished we had embraced was the importance of identifying our niche. Initially, we attempted to cater to everyone, offering a broad range of services. This approach quickly proved to be neither viable nor profitable.
Ultimately, we refined our focus to web development and marketing, specializing in graphic design for small enterprises and nonprofits. This specialization allowed us to become experts in our field, enhancing the quality of service we provided and attracting clients we genuinely enjoyed working with.
If you are just starting, we strongly suggest identifying your niche and striving to become a leader in that area.
Section 2.2: Establish Efficient Systems
To facilitate growth, we implemented systems and processes that streamlined our operations. Tools like Notion and Slack have been invaluable for project management, enabling us to stay organized.
Creating templates and standard operating procedures for recurring tasks has saved us considerable time and allowed us to delegate effectively, letting us focus on crucial business areas. If you are not already utilizing systematic processes, we highly recommend doing so to enhance productivity.
Section 2.3: Prioritize Sales and Marketing
At the outset, we dedicated excessive time to non-revenue-generating tasks, becoming too engrossed in perfecting our website and design without focusing on sales.
We soon recognized the necessity of prioritizing sales and marketing to foster growth. We committed at least 30% of our time to these efforts, which included writing blog posts, creating social media content, and networking.
This shift proved transformative, allowing us to connect with more potential clients and increase sales. We encourage you to devote sufficient attention to sales and marketing as a foundation for your business growth.
Section 2.4: Invest in Continuous Learning
Investing in our education has been one of the most beneficial decisions we've made. We enrolled in courses, attended workshops, and absorbed knowledge from books on sales, marketing, web development, and business expansion.
This education has equipped us with new skills and insights, helping us to avoid costly errors and understand what clients seek in a successful business. If you haven’t invested in your education yet, we highly encourage you to start; it will yield long-term benefits.
Section 2.5: Maintain Focus and Consistency
A critical lesson we learned is the importance of maintaining focus and consistency. New opportunities can be enticing, but staying aligned with your goals is paramount.
Engaging in discussions about potential opportunities ensures alignment with our objectives. My co-founder and I have frequently deliberated over whether to pursue certain avenues and have concluded that it's often wiser to reject pursuits that don't align with our vision.
Equally vital is consistency. While immediate results may not be apparent, persistence in communication and effort aligned with your mission will eventually yield results.
Section 2.6: Foster Open Communication
Open communication has been pivotal in our growth. We prioritize regular updates with our clients about their projects, as many past clients have reported poor experiences due to a lack of communication.
Internally, we maintain a dedicated Slack channel for ongoing discussions about business matters, which has fostered trust and transparency among our team and clients. Regular communication helps prevent misunderstandings and keeps everyone aligned with project timelines and expectations.
Section 2.7: Automate and Outsource Tasks
To focus on sales and marketing, we've automated and outsourced as much as possible. We utilize MailChimp for email marketing automation and collaborate with agencies for social media posting, along with outsourcing content development and design tasks.
Adopting the Tim Ferriss approach from The 4-Hour Work Week has allowed us to concentrate on the key elements of business growth while saving time.
Section 2.8: Monitor Finances Closely
Tracking our finances meticulously and discussing them openly has been essential. We maintain a close watch on our income and expenses to make informed decisions regarding business growth and compensation.
Regular discussions with our financial advisor and CPA ensure we're making sound financial choices. Sharing financial insights with our team fosters a shared understanding of our business's financial health and aligns our collective efforts.
Section 2.9: Explore Additional Revenue Streams
To further our growth, we actively pursued additional revenue streams. While our core services in web design and marketing have been successful, we recognized the need to diversify as the industry evolves.
We initiated a separate company specializing in content and SEO development and established a holding company to streamline our administrative, legal, and financial services under one organizational umbrella.
Section 2.10: Dedicate Yourself to Hard Work
Finally, we learned that success stems from hard work and humility. Despite our skills and experience, progress hinges on our willingness to put in the necessary effort.
In a small team, every individual's contribution is vital; neglecting responsibilities stalls progress. We've embraced hard work, sacrificing time and comfort, which has led to our remarkable achievement of earning $90,000 in just over a year.
Final Thoughts
While our success is partly influenced by privilege, we recognize the unique circumstances that allow for entrepreneurial endeavors. If you have the opportunity to invest hard work into a business that can provide financial independence, we wholeheartedly encourage you to pursue it. The rewards can be tremendously fulfilling.
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