Why creatives fail at building businesses

Hey there. Happy Saturday! Today, I want to share some thoughts on building business as creatives.

As a creative person, I have been hustling on different side businesses for a long time. Over the years, I have learned that most creatives who want to build a business end up failing because they focus on the wrong things.

Many think they have to be the best designer, writer, or animator to succeed, but the truth is, “selling” and other skills they lack are what's actually holding them back. It took me quite a while to learn this lesson too.

Here are some of the other reasons I've learned people fail at building creative businesses, and I hope this can bring some light to other creatives.

Reason #1: They focus too much on the projects

Many creatives spend most of their time perfecting their work. While quality is important, spending too much time on projects means they neglect other crucial parts of the business, like marketing and networking.

When I first started my studio, I was so happy to get some recurring clients who were willing to stay on a monthly plan with me. I thought I could just focus on serving those clients well.

For a whole month, I stopped selling and focused on studio operations, which I don't recommend any founder do. The main reason is that I was building it as a side business and also had two young kids to take care of. I was afraid that when there were too many clients, I would get overwhelmed.

I was too naive to think that every call would lead to a signed contract. No, they don’t. Even if I have 10 calls lined up, they won’t all end up converting, nor will they be ready to roll at the exact same time. I have to keep reminding myself that my role as a founder is to sell at any time.

As a creative who makes a living creating, either collaborate with others who can take care of the channel problem for you, or build the muscle to be a salesperson at all times.

Reason #2: They are too fixed on their rate and refuse to do free work

Some people think that accepting lower pay or doing work for free undermines their value. However, doing a few free projects can help build a portfolio, gain experience, and attract paying clients in the future.

I initially didn’t understand this and also stuck to my industry rate and passed on many opportunities. Of course, if you are doing it part-time and don’t care if you get the project or not, that’s another story.

The way many creatives start is by building a portfolio through free work. It works, and I have realized this from both sides of the business.

When I offered free or affordable design to clients I had never met: 1) I built potential opportunities for future work; 2) I built a portfolio to showcase my studio’s capabilities.

The same applies to designers who approached me to collaborate. If they were willing to help out when I earned no money, it’s likely I would keep working with them when I earned more money.

If you want to attract the right opportunities, investing early on can give you an unfair advantage.

Reason #3: They are all over the place and do not appear to be the expert

It’s common for creatives to try and do a bit of everything. However, not having a clear focus can make it hard for potential clients to see them as experts.

Even in design, whether you are a logo designer, brand designer, or product designer, finding an even more niche area can help you stand out. For example, hand-lettering logos, facilitating design sprints, or branding for crypto companies.

Imagine an artist who says they are good at realistic, abstract, and surrealism styles. Would you purchase your favorite art from an artist who only does abstract or a generalist who does it all?

Specializing in a specific niche can help establish authority and attract the right clients. Since I am based in Silicon Valley, choosing to focus mainly on the tech industry is out of the same consideration too.

Reason #4: They are too invested in a unscalable model, or stuck on it for too long

There’s a reason why many entrepreneurs want to sell courses or build software. Those models are easily scalable and can generate revenue as you sleep.

I don’t suggest creating products or courses from the beginning since you also need strong channels to sell them. Doing unscalable things initially helps a founder to deeply empathize with and understand their target audience, and it’s totally okay.

But, as time goes on, would the system a founder sets up run automatically and scale 100X with ease? That’s the question we as creatives have to ask ourselves all the time.

As much as I enjoyed mentoring small groups of designers who want to advance their design careers, I had to take a pause to reflect on whether the model can scale and multiply the value I provide without me being there. Instead of only six people per group, I decided to open up my mentorship group to more designers who are interested (currently not taking any new mentees just yet).

Thinking outside the box and figuring out a system that works on its own is a challenge we creatives all face. What part of the business can be delegated and what cannot?

Summary

That’s it! Creatives often fail in business because they focus too much on perfecting their projects, stick rigidly to their rates, lack a clear focus, and get stuck in unscalable models. I hope you learned something through this newsletter and let me know what topics I can cover next!

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