Navigating Business Advice: Lessons Learned from My Father-in-Law
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Chapter 1: The Cost of Blind Trust
In hindsight, I wish I had approached my father-in-law's advice with more skepticism. Instead, I uncritically accepted his business guidance, which ultimately led to financial hardship.
I have been running my business for over a decade now, and while that may reveal my age, it has also exposed me to a myriad of advice—some beneficial, and much of it detrimental. As I embarked on my journey as a freelance web designer, I was bombarded with unsolicited recommendations from those around me.
"Do this."
"Don't do that."
"Improve your approach."
"Try something different."
It's as if having business experience gives people the authority to critique those who are just starting out. Spoiler alert: it doesn’t. One piece of guidance, however, still lingers in my mind, stemming from my father-in-law while I was enhancing his business website. I recall the day he unexpectedly called to discuss my invoicing method. He had received my invoice and deemed my two-week payment term inadequate.
With over two decades in his own business, he insisted, "All invoices should have a one-month payment term." He didn't merely suggest this change; he insisted I implement it for his benefit.
A year later, this advice plunged me into a cash flow crisis. I found myself short on funds, anxiously awaiting the end of the month for payments that were delayed due to my extended terms. His counsel had driven me to financial ruin.
The reality is, the advice was flawed, and I should have disregarded it. Here’s what I wish I had done before following his recommendations without question.
Testing the Basics
I regret not conducting the simplest of tests before adopting my father-in-law's advice. I didn't even pause to consider his suggestion; I simply changed my invoicing system to align with his month-long payment term.
Testing wouldn't have been complicated. I was aware of my business's previous payment timelines and the frequency of invoices. I could have easily set up a testing framework: implementing a one-month term for a few clients, a two-week term for others, and an even shorter one for the rest. Such a straightforward approach could have provided valuable insights.
I had the ability to track changes in cash flow, payment timelines, and month-to-month variations. Yet, I failed to take those steps.
What frustrates me most is that my father-in-law's advice was indeed testable. I could have tried it out in my business and assessed the outcomes without a complete overhaul of my operations. The only cost would have been my time.
Just Test It
When time is available, it's often better to invest it rather than money you may lack. Testing can be tedious, especially when it comes from someone you respect. However, short-term frustration can prevent long-term problems, as I learned the hard way.
Testing is not a long-term commitment; you don't need to do it indefinitely to see whether it's a viable strategy. Since then, I have tested every piece of advice I've received and have never regretted applying this quality control. My only regret remains the times I didn’t test before acting.
Seeking Other Opinions
I have a deep respect for my father-in-law's business insights, both then and now. However, I wish I hadn't viewed his wisdom as the ultimate authority. There were countless others I could have consulted to corroborate his suggestion or provide an alternative viewpoint.
Given another chance, I would have:
- Sought opinions on Reddit from fellow entrepreneurs.
- Engaged with Facebook groups filled with like-minded business owners.
- Discussed my invoicing policy with my business contacts.
- Inquired with my customers about their preferences in my situation.
Even though these sources may not be as prestigious as a panel of CEOs, seeking out diverse perspectives can be invaluable.
Recognizing Recycled Advice
It's crucial to remember that much of the business guidance offered isn’t original. Rarely is the advice you receive groundbreaking or untested. When you're new to entrepreneurship, every suggestion can feel monumental.
There is likely someone within your network or an online entrepreneur who can validate or challenge the advice you receive. Since my experience with my father-in-law, I always research the advice given to me, utilizing forums and social media groups to gain clarity.
I no longer act on advice without seeking additional opinions. While others' insights can help clarify the advice's validity, it doesn't mean you must implement it. It merely guides you in deciding whether it's worth testing.
Don’t Fear Looking Naive
Many may hesitate to seek second opinions for fear of appearing inexperienced or ungrateful. I felt that way too, but I've learned that making a mistake out of pride is far more embarrassing. When your poor decisions become public knowledge, the fallout can be severe.
Most people won't notice if you ask a few straightforward questions.
Researching the Source
I regret not doing more research about my father-in-law before accepting his advice. While I was familiar with his business background, I didn't follow my usual practice of verifying the credentials of anyone who offers me guidance.
The moment I encountered advice that seemed too good to be true, I began investigating the advisers' backgrounds. I scrutinized their experience and credibility in the industry. For instance, I once looked into a self-proclaimed social media expert who boasted about gaining a thousand followers, only to find that they had barely over five hundred.
I wish I had challenged my father-in-law's credibility. It doesn’t take much to determine whether someone is genuinely knowledgeable about what they're suggesting. He lacked the relevant expertise for my particular situation as a freelancer.
Good Intentions, Bad Advice
It's essential to recognize that even credible individuals can provide misguided advice. CEOs and industry veterans can mislead you, offering strategies that worked for them but may not suit your business.
Thus, credibility checks should not be your sole method of filtering advice. You must also consider the other factors I’ve mentioned.
Understanding Bias
When someone offers advice, it’s important to ask: "What’s their motive?"
- What do they hope to gain from providing this guidance?
- What are the potential benefits for them if you follow their advice?
- What underlying biases do they have?
No one offers advice purely out of altruism. In business, it’s crucial to recognize that nothing comes without a price.
I wish I had been more mindful of what my father-in-law stood to gain. In retrospect, I see that he wanted to align my invoice payment terms with his accounting practices, not necessarily for my benefit.
The Importance of Realizations
Not everyone is out to harm you with their advice. However, it's vital to acknowledge that some may not have your best interests in mind. Their intentions might not be malicious, but they could still benefit from your compliance.
Advice can serve various purposes, from generating sales for their products to building a loyal following. Recognizing these motivations can help you discern who is genuinely trying to assist you.
Peer Pressure
I regret not acknowledging the influence of peer pressure in this situation. My father-in-law's insistence made me feel as though something was fundamentally wrong with my business, compelling me to change my approach.
Had I viewed his input through a more personal lens, I might have recognized the manipulation sooner.
Embracing Caution with Advice
Perhaps my greatest regret is not approaching his advice with a healthy dose of skepticism. I wish I had taken a more cautious stance, considering it alongside other life lessons.
From my experience, the most prudent way to handle business advice is with a critical yet open mindset. It’s wise to pause, evaluate, and reflect on the recommendations you receive.
It’s impossible to know whether every piece of advice will benefit or hinder your business. Strategies that work for one company may not yield the same results for another. The one constant I can rely on is the practice of caution.
Treat every suggestion as just that: advice. It’s not a guaranteed solution to your business challenges. Remembering this will make you a better business owner.
Chapter 2: The Value of Perspective
In "Father-in-Law Is Giving Me the Business... Maybe," the speaker reflects on the implications of unsolicited business advice from trusted sources, emphasizing the importance of discernment.
In "I'm Nervous to Take Over My Father-in-Law's Company," the individual discusses the anxiety and challenges of stepping into a family business, highlighting the need for careful navigation of inherited expectations and responsibilities.