In my last note, I talked about growth markers – and promised to go over what needs to be worked on in the business when you start delegating (Growth Marker #1).

But… I want to share a little bit more of my story and how I got to that point first.

I call this chapter of the story: “I’m a real business!” 

I am what you would call the “accidental business owner.” I never thought in a million years that I would have my own operation. In fact, when I got started in this industry in the Hamptons, my intent was to scale to the top of the company and run the 3 locations. Long story short, after feeling under appreciated, underpaid, and undervalued I left and leapt into self employment… via Google.

Yes, I Googled a company to open the business and ended up hiring Bloomberg Associates. I had no idea what I was filling out. I didn’t know the difference between an LLC, S Corp, C Corp. I just bought a domain and went for it.

To start, I used a free invoicing site that required me to print and keep a paper trail of invoices. I made it work. An accountant friend of mine told me that he’d keep an eye on the bank account. He said if I started making “real money,” he would let me know and how me how to use Quickbooks…

Fast forward three months, I was operating through Quickbooks and had already made an entire year’s salary from my previous position.

I said to myself: “I am a REAL and PROFITABLE business!”

This is what the next year in business looked like for me:

1. I closed any and every job, at any price point (as I explained in my last note)
2. I created a social media page for my business
3. I joined a weekly networking group

I profited 6 figures that first year. I didn’t hire anyone to do anything that I could do myself. I even installed my own drapery to increase my profits and put more money to my 2 annual vacations fund.

The truth is, I wasn’t a “real” business just yet. I was self-employed, and very successful at it!

Reflecting back on that year, I don’t think I would change much. There are only a couple mistakes that I could have avoided by taking the time to create a solid foundation for my business.

1. I should’ve consulted with an accounted prior to setting up the business. I ended up paying an extra $13K in taxes that year that I could’ve avoided by filing as an S Corp. This required my accountant to go back and change the corporate structure with the IRS later.

2. I started taking on work from another company prior to having an EIN, so I filled out the W9 with my social security number. This REALLY bit me in the butt later, when the IRS came after me for $360K in taxes… They thought the $900K in annual revenue from that client was personal income, because I hadn’t filled out the paperwork correctly. Eventually my accountant resolved this, but as the IRS moves like snails this one definitely took about 5 years off my life.

3. I should’ve used a contract, clearly stating my terms of service and including protection clauses! I dove into this in my last note. Looking back, I do feel like I jumped into some bad deals and got taken advantage of at times. But because I was making over 2x the amount of money I was used to, and had very little overhead, I didn’t really care. That changed quickly as I approached my first growth marker!

If you can relate to this chapter of my story, you are likely on the brink of your own first growth marker!

Whether you just “fell” into the business owner journey, or if you have always known you wanted to own your own company – make sure to prioritize the foundation. You will thank yourself as you approach the point of maxing out your own capacity and needing to put a team around you. THAT is growth marker #1, and I really will dive into that in my next note. I promise this time. 🙂