Optimism Killed My Small Business

You hear all the time, 'Be positive' and 'Believe in your dreams.' And, full disclosure, I'm usually right there with you saying the same thing!
 

But what if that relentless optimism is the very thing that leads to your business’s downfall?

I love a positive mindset. I believe in visualising success. But I've learned the hard way that unwavering optimism can really mess things up.

Ignoring red flags, skipping planning, expecting miracles? You're basically setting yourself up for a major headache. Simply wishing for the best without taking concrete steps is like trying to build a house with only blueprints and no materials. You need action, not just good intentions.

Hope Is Not A Business Strategy

Hi, I’m Shelley Cox, founder of Your Business Compass, and I need to tell you something that’s tough to admit: in many ways, optimism killed my small business.

It’s a confession that might surprise you, especially since my work is all about empowering small business and regional entrepreneurs, but it’s a truth I need to share. This is my story of optimism gone wild, two businesses flatlining, and how I managed to pick myself back up. Oh, and let’s throw in a pandemic and a surprise third pregnancy, just for kicks, right?
 

The Dream //

Okay, so after two decades as a winemaker, I had this idea in 2019 for two things I thought our regional community really needed. First was Workspace Barossa – imagine a big, friendly space where people running businesses or just wanting to do cool stuff could hang out, share ideas, and actually ‘do good things’ together. It wasn’t just about desks; it was about creating a vibrant, collaborative space.

Then there was Makers & Merchants Barossa. This was my way of showing off all the amazing creative people around our region. It was an online e-commerce store and a physical bricks and mortar store where our regional makers could tell their stories, and I’d handle the marketing and online selling. It was all about making it easy for people to buy awesome local stuff directly from the creators. Both of these were built on a lot of hope for our region, and I still believe in their potential for bringing people together.

My mission has always been to provide “small business owners with real tools and practical strategies for real-life success.” Yet, I started with a really naive optimism.

I honestly thought that if I just worked hard enough and wanted it badly enough - and the idea was good enough - everything would fall into place.

I envisioned a thriving community, instant success, and effortless growth. It was a beautiful dream, but it wasn’t based in reality. Yes, we were navigating ‘unprecedented times,’ thanks to Covid but still…

Ignoring the Signs // 

Because I was so set on being positive, I totally ignored the warning signs.

• Declining customer engagement? "It'll pick up."
• Cash flow problems? "I'll find a way."
• Declining sales? "It's just a temporary dip."
• Unhappy customers? "They're probably just having a bad day."

I dismissed the red flags, convinced my optimism and ‘can-do’ attitude would save me. This blind faith led to financial decisions I really regret and am still dealing with.

It wasn’t a complete lack of planning //

I had plans, I had structures, but somewhere along the way, optimism made me think I didn’t need to check in and adjust the plan. I thought I could just “go with the flow.” I underestimated the complexities of running a business, especially in a regional area during Covid. I lacked real contingency plans, thinking nothing could go wrong if I stayed positive. This left me vulnerable when challenges popped up.

• Financial Recklessness: Blind optimism can lead to bad financial decisions. Overspending, underestimating expenses, ignoring cash flow – been there. "It'll all work out" is not a strategy.
• Burnout and Disappointment: When your optimism crashes against reality, it hurts. You pour your heart into your business, only to be met with disappointment and burnout. You start questioning yourself.
• Then 2020 Happened: Cue the drama. COVID-19 hit, and my rose-colored glasses shattered. Plans? What plans? The world was changing fast. My optimistic bubble deflated fast.
• 2021: Baby and Business Chaos: If 2020 wasn’t enough, 2021 threw in a curveball: a surprise pregnancy as I was about to turn 40. Suddenly, I was juggling zoom meetings, morning sickness, and a baby on the way. My optimism was running on fumes.
• Ignoring the Signs (Because Babies Are Distracting): With a newborn and a business trying to navigate the post-pandemic world, I missed a lot of warning signs. I was running on adrenaline and too much coffee.

The Burnout of False Positivity //

Pretending everything was fine was exhausting. I tried to put on a brave face, but inside, I was struggling. The pressure to keep up the facade of positivity led to burnout. My ambition felt like a burden.

The Big Letdown //

When reality hit, it hit hard. The bubble burst, and I faced the consequences of my naivety. Closing both businesses, dealing with debt, feeling the enormous shame that I’d let people down – it was crushing. I questioned everything. My "success story" felt like a failure. It was a low, low point, and it forced me to confront the dangers of unchecked optimism.

The Road Back to Positive-Town //

When things got bad, I’m so grateful I asked for help. I was worried about what people would think, but in a small town, screwing up feels extra exposed. I’m so thankful for my wonderful husband Sam, my family, friends, therapist, Rural Business Support, New Access Mental Health Coaching (Beyond Blue for business owners), and the B2B program of Regional Development Australia Barossa. It’s been a long, long road since 2021 to get my confidence back.

The road back wasn’t easy. I have had to pick myself up, deal with the financial mess, and still be present for my family. There were days of doubt and moments of wanting to give up, but I was determined to learn and rebuild something stronger.

While I remember the past and the lessons, I’m now focused on the positive (see, I just can’t help myself!). I see our mentoring and courses making a difference, and that’s where my focus is.

Working with collaborators to deliver coaching to small business owners via our Compass Guides, like Laura Mudge (Smudge Digital), Kat Crane (Crane Creative), Angela Pickett (Angela Pickett Copywriter), Johan Czanik (Your Number Man), Bec Retz (Bec Alison Marketing) and Penelope Dodd (Penelope Dodd + Co) - keeps my spirits high! I'm on the Committee for Mainstreet SA, which fuels my passion for empowering main street traders and communitites.

The Way Forward //

This isn’t a story of complete failure. Your Business Compass exists because I learned from those mistakes. 

I learned that optimism without strategy is dangerous.

That hope without action is pointless.

That blind faith can lead you astray.

I had to let go of false positivity to find true resilience.

Optimism is valuable, but it needs to be grounded in reality. Balance your hope with planning and skepticism. Be optimistic and prepared.

Are you being blindly optimistic, or are you building a solid foundation for your business?

Why Cover Six Topics with Your Business Compass? //

I teach these six core topics because I wish someone had taught them to me earlier.

I learned these lessons the hard way, and my goal is to help you avoid the same pitfalls and build a sustainable business with confidence.

It’s about community, connection, and helping you reach your goals.

• Brand Identity: Rebuilding taught me the importance of a clear brand message. ‘Know your Why’ is the foundation of everything.
• Financial Savvy: Learning financial management the hard way made me passionate about helping others gain financial clarity.
• Marketing Strategies: I learned how crucial it is to ‘know your Customer’ and use targeted marketing.
• Leadership & Teams: Business isn’t a solo journey. Build relationships and a team.
• The Way We Work: Good systems are essential, not just bells and whistles.
• Reflect, Evolve & Scale: Continuous growth and adaptation are vital.

Now, I focus on balanced optimism: acknowledging challenges, planning, and celebrating small wins. And with a three-nager, you need to be prepared for anything!

I embrace "realistic optimism.”

I believe in my dreams, but I also have spreadsheets and contingency plans. And I’ve learned that even when things go wrong, there's always a silver lining.

I hope sharing this helps others avoid the same mistakes.

Let’s be honest about the struggles and build a community based on reality, not just wishful thinking.

Set your business for success // Learn more about Your Business Compass online course

Interested in sharing my journey or featuring this story? For media inquiries, please reach out to Shelley Cox at [email protected].

Disclaimer: This reflects my experiences. It’s not meant to discourage optimism, but to highlight the importance of balance and planning. Your experiences may vary. There are many resources out there, Your Business Compass is one - please reach out if you need help! xx Shelley