366 | Is It Harder to Start or Scale a Business with Katie Hunt
Is it harder to start a business or scale a business? This was a question that someone posed over on Threads recently, and it got my wheels turning.
In 2024, scaling is harder. It is easy to start a business these days. However, most don't have the grit to keep going long-term and scale the business.
During this episode, I dive into why it’s easier to start a business in 2024 but harder to scale a business. I touch on how different marketing is these days, the differences between finding manufacturing partners now vs in the past, changes in technology, decision fatigue, and more.
Today’s episode is brought to you by our Proof to Product LABS coaching program. This is a coaching program specifically built for product-based business owners, with members from across industries and across the globe. We have member-only events inside of LABS, so request your invitation to join below!
What It Was Like Starting a Business in the Past
When I started my product brand in 2008 it was difficult and expensive. Not only was it hard to find the manufacturing partners, but most required that you do product runs that were several hundred or even thousands of units.
It was a big risk to run a new product that you didn't know would sell, and it was also financially taxing.
There were a lot of logistical and financial challenges, and then not to mention, I needed multiple SKUs, but I had to order thousands of one SKU, not knowing how well it would sell.
In the past, for those selling wholesale, the best way to reach new accounts and connect with existing wholesale accounts was through trade shows or sales reps. Face-to-face sales reigned supreme, and, frankly, I think they still do.
But sales reps were tough to find. A lot of them didn't have websites, and trade shows were and still are expensive. We didn't have the access to different accounts and buyers that we have now through online or email marketing channels.
When I started Proof to Product in 2011, social media was still in its infancy, and the two main options were Twitter and Facebook, both of which operate very differently today than they did back then.
My first set of Proof to Product classes filled up through word-of-mouth marketing. I was asking friends and families to share my class with their network. Zoom didn’t exist at the time so I used GoToWebinar, which was geared toward corporations with an expensive price tag to match.
We didn't have access to a lot of the tools that we have now. Starting a business required a lot more capital in the past.
What It Is Like Starting a Business Now
It is infinitely easier to start a business today. Information and technology are abundant.
If you wanted to sell candles, a quick Google search now would help you find suppliers, materials, or vendors that could white-label the product for you. You could be up within a few hours what kind of products you want to create.
If you want to sell greeting cards today, you can digitally print a minimum quantity of 25 per SKU rather than committing to 250 per SKU, which used to be the minimum when I started my business in 2008.
Small batch options for producing products are becoming more readily available now, which makes that cash flow crunch easier.
In the past, the hurdles to get into business were bigger. But once you figure things out, in my opinion, it was easier to ramp up marketing sales and production.
Today, it feels easier for people to start a product-based business, but harder to scale. You'll design your product, manufacture the product, and sell your product.
The process is still the same as it's always been. But the access we all have to information, tech tools, and online resources, makes the process faster, cheaper, and easier, which is awesome, but it also creates a new set of challenges, which leads me to why scaling a business today is more difficult.
Why It’s Harder to Scale a Product-Based Business Now
Technology is more accessible and more robust, but that also makes it more complex because we now need to put in more time to research the different tech pieces. The decision-making process of which tech to use can feel complex and cumbersome to people.
Information is shared more freely now than it used to be, but that also means that you may get conflicting advice about how to build your business. I know social media is flooded with people sharing their own experiences, which is wonderful because we can learn a lot from people. But at the same time, you're also going to get conflicting information about what the right method of growing your business is for you.We're consuming a lot more content, which can also lead to conflicts in our brains about how to move forward in the best possible way.
Decision fatigue. People are overwhelmed with the number of choices that they have. Things like vendors, suppliers, tech tools, marketing methods, and even our sales channels. There are a lot of things we're having to make decisions on as business owners.
Social media has provided an incredible outlet for people to connect with each other and also share their products with customers. But it has also led to distractions and wasted time scrolling during the day or at night.
Five Things To Remember While You’re Scaling Your Business
Starting and scaling a business has never been easy. The challenges just change over time. Certain aspects have gotten easier over time while other pieces have become more difficult. There are a lot of challenges that we probably still haven't come across that we will experience as we continue to grow.
Starting and scaling a business takes time. There is no such thing as an overnight success. All of your favorite brands are working hard behind the scenes day in and day out, making decisions and intentional choices. Even if it may look like things are scaling with ease, there is a lot of hard work going on behind the scenes that you might not be aware of. Be patient.
You are doing incredible work. It's amazing to have so many options, it's also really important that we stay focused on growing an intentional business. Try to avoid the shiny objects that surround you, like new product trends or fancy tech tools that you may not need, and team members you might not be ready for. Get clear on what your business should look like and what you want it to look like, and then continue working towards that goal.
Surround yourself with incredible people who lift you up and push you towards your goals. Not everyone has your best interest at heart. It's critical that you find people who are fierce supporters of you and the way that you choose to grow your business. Everyone is going to grow their business in a different way. There are a million ways to grow a profitable, sustainable business. Choosing the right path for you can be difficult, but if you have the right people surrounding you, then you will grow faster, stronger, better, and with more support.
Stay gritty. I am not a fan of hustle culture, but building a profitable, sustainable business does require grit, dedication, and the ability to shift plans when needed. Thinking critically is important, and making decisions confidently will take you far. Use critical thinking, good judgment, and agility to continue pushing your business forward.
If you’re looking for a community of like-minded product business owners, consider joining us in LABS.
LABS is a coaching program specifically built for product-based business owners, with members from across industries and across the globe. We have member-only events inside of LABS, so request your invitation to join below!
Connect with Katie Hunt
Katie Hunt is a business strategist, podcaster, mentor and mama to four. She helps product based businesses build profitable, sustainable companies through her conferences, courses and coaching programs.
Website: prooftoproduct.com | Instagram: @prooftoproduct
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