Red Light, Green Light: Spotting the Flags in Your Business

Do you remember being a kid and playing Red Light, Green Light? The fun of sprinting as fast as you could to the finish line before someone yelled “red light”? Or the “oops!” moment when you were still moving after they called it?

Sometimes when I’m working with business owners, that memory comes back to me. We end up talking about red flags and green flags in their business practices—and just as often, in the way they interact with clients.

Here are some of the most common flags I see come up:

🚩 Not reviewing your overhead costs twice a year This is a red flag. Business owners are constantly surrounded by “the next shiny thing”—a new tool, service, or software promising to make life easier. It’s so easy to get caught up in buying without stopping to check if it’s still worth it. If you’re not evaluating your bottom line regularly, you could end up spending more than you budgeted—or worse, more than you’re bringing in during slow seasons.

✅ Spotting opportunities for collaboration Now this is a green flag. You know I love a good connection and collab. Collaborations build your business, strengthen relationships, and often create natural referral pipelines. If you approach business with a “what’s in it for me?” mindset, this might feel uncomfortable. But if you’re excited by the possibilities, this is exactly where to focus your energy.

⚠️ Chasing the next sale This one’s a yellow flag—it depends on the situation. Running a promotion and a client wants to know more? Go for it. But if you’re chasing a specific new client, pause and ask: Are they really my target audience? Do they have the budget? Do they need what I offer? And most importantly—are they ready for me? Sometimes a client looks like a dream come true, but a little analysis will tell you if it’s the right move.

🚩 Living by “fake it ‘til you make it” Hear me out. Trying something new? Of course you won’t know everything right away. That’s where “fake it ‘til you make it” can be helpful—it gives you the confidence to take the leap. But where it goes wrong is when someone has the attitude without the intention or the work behind it. That’s when things get messy (and yes, I’ve seen some business owners get a little…delusional). A mindset alone won’t cut it—you need action to back it up.

⚠️ Hiring coaches and strategists when no money is coming in Another yellow flag. If your business is a side gig and you have other income, investing in a coach or strategist can help you move forward. But if you’re not generating revenue yet and you’re spending on multiple programs, it’s time to check your ROI. Coaches and strategists are amazing guides, but they’re not in the trenches doing the work for you. That’s on you. I’ve seen business owners stuck in an endless cycle of “next program, next coach” without sticking long enough to see results. It’s a dangerous financial loop.

Sometimes the flags aren’t obvious. That’s why reflecting on your motivation, intention, and process is so important for growth.

So let’s leave Red Light, Green Light to the kids at recess—and play the more strategic game in our businesses.