3 mistakes I made when I started my company that I'll never make again

What I did first: As my crafts business, grew, I pulled money from my retirement savings to pay for equipment and raw materials. I had a gambler's confidence that, any day now, my art would start selling like hotcakes.

It wasn't until I had been in business several years that I took business classes at an incubator called Women's Initiative and learned to track my income and expenses. Within a few years, I was able to predict my business income and plan big purchases at the right time in my cash flow. I saved money from my high-earning months to pay myself in my off-season.

What I did the second time: I didn't make much money in my first year as a freelance writer. That year was my apprenticeship: I freelanced for a local online newspaper that couldn't pay much but gave me a chance to build my portfolio and learn the business. But I had saved up enough from several years of working an office job to get me through my startup phase without dipping into my retirement account.

Most importantly, I started this business with a spreadsheet to track and predict my cash flow. I took charge of my business financials from Day One. When you start a business, understanding the numbers is every bit as important as following your passion.

What I did the first time: When I started the business, I believed that being an entrepreneur meant working until I was worn down. During the holiday season, when I made a large chunk of my money in my craft business, I rarely got more than five hours of sleep at night.

It's a miracle that I didn't get into a car accident due to drowsy driving. This overwork was terrible for sales, too — I showed up to craft fairs so exhausted that I could barely talk to customers.

What I did the second time: The belief that you have to work long hours in a startup seems even more prevalent now than it was when I started my first business.

But I know that down time is fertile for creativity, and I get more accomplished by working shorter hours and recharging my batteries.

Most weeks, I work 36 hours or less. I have to prioritize fiercely and do only the most important tasks on my list. And I get to have two things I want very much: a successful business and a balanced life. You can start a successful business without running yourself into the ground.