I’m a Self-Made Millionaire: These Are 7 Major Mistakes I Made And Learned From
Self-made millionaire Kraig Kleeman, CEO of Z-Branding, likens starting a million-dollar business and building wealth to baking a cake; “except you’re the chef, the ingredients are unknown and the recipe keeps changing,” he told GOBankingRates.
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Getting to the status of “millionaire” wasn’t an easy journey for Kleeman, and he recognizes that many errors were made along the way. Here, with GOBankingRates, Kleeman discussed the most major mistakes he made in building his wealth, as did fellow self-made millionaire Asif Bux.
I Feared Failure
The prospect of failure is a common and formidable fear, but most successful self-made millionaires will tell you that failing early on, in some capacity, is an essential part of the wealth creation process. Bux suggests that his early fear of failure set him back.
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“I was scared of financial failure and hesitant to engage in activities where I could lose wealth,” Bux said. “This is why I waited almost six years before starting Comfort Union. “I engaged only in endeavors with minimal barriers and never succeeded. It taught me that the faster you fail, the higher the chances of success.”
I Had A Brand Identity Crisis
Kleeman amassed wealth by running a successful business — a process that requires establishing a strong brand identity. In the beginning, Kleeman didn’t have a steady hand here and kept switching things up to the point of confusion.
“I made our brand’s identity change a lot like a chameleon — always adjusting for different situations,” Kleeman said. “That was not good. It was difficult for customers to understand the true values of our company. Experience taught me that having a clear and steady brand identity is essential; it’s like the spine of your business. It’s what makes you recognizable and reliable in the eyes of your customers.”
I Followed My Intuition, Rather Than the Data
We often get the advice to listen to our gut, but our intuition can only carry us so far when it comes to entrepreneurship and wealth building. We have to do our homework, too — as Kleeman learned the hard way.
“I really liked to rely on my intuition before, but then one time, it led me astray in a big way,” Kleeman said. “Not doing thorough market research at the start caused us to not quite grasp our audience and their true desires. Now, I have become a believer in data. Using data to make our decisions has greatly reduced risks and increased the rate of our success.”
I Underinvested in Building an Expert Team Around Me
In the beginning, Kleeman was committed to saving money and opted to not spend much on recruitment for his business.
“Rather than employ experts, I chose the less expensive candidates,” Kleeman said. “Not a good decision. As we began working on harder projects, it was very clear that the knowledge was not enough. Putting money into excellent people at the beginning is essential as they will be the ones to take your dream ahead.”
I Fumbled Financial Planning
“I confess, my skills at handling money were not the greatest from the start,” Kleeman said. “Lacking a good plan often led to us rushing to meet costs, nearly falling into debt. Focusing on financial planning has greatly changed the game. It isn’t only about making it through each month; it’s also about flourishing and preparing for any situation the market might present.”
I Didn’t Hire the Right Lawyers Right Away
Entrepreneurs need proper legal guidance to understand the ins and outs of their ventures. Bux didn’t know this, and such ignorance was a costly mistake.
“I misread many contracts and contractual obligations that came with personal guarantees and financial liability,” Bux said. “I wish I had known there are lawyers who are subject matter experts in specific areas, such as a lawyer with a professional background in construction who is also a practicing lawyer, or one who previously worked for the federal tax department and now has their practice. These lawyers can help you avoid many financial and contractual mistakes, and paying them $500-$1200 doesn’t hurt, considering the mistake could cost hundreds of thousands. I did not recognize the value of the right lawyer early on.”
These days, Bux invests in specialist lawyers to help him be confident and stay in the clear.
I Neglected Networking
When starting along his journey to making millions, Kleeman was focused primarily on the money-amassing tasks at hand and wasn’t doing much in the vein of networking.
“Large error,” Kleeman said. “Networking is not only socializing at party events with drinks; it’s regarding the creation of connections that might open doors to fresh chances, collaborations and ways towards inventive ideas. I’ve since learned to put myself out there, and honestly, it’s paid dividends.”
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This article originally appeared on GOBankingRates.com: I’m a Self-Made Millionaire: These Are 7 Major Mistakes I Made And Learned From
