Common Mistakes New Business Owners Make…And What To Do Instead

I’ve worked with a lot of new business owners. And I usually see common mistakes they make that stop them from moving forward as quickly as they could. These are the things I most observe that stop forward momentum and keep them stuck and unable to grow.  

1.       They go it alone. Instead of finding a coach or mentor who has been where they are, they try to do everything themselves. They read and research and try to figure it all out. The problem with this is that it takes time. And that time spent researching instead of hiring a coach or mentor slows them down and delays them getting traction in their business.  

Instead, find a coach or mentor to work with who will help you keep moving, provide their guidance and expertise and hold you accountable for making progress. You’ll avoid burnout and cut the time down to start getting traction in your business.  

2.       They think they have to have a perfect website all set up before they can go out and start looking for clients. The number one priority of a new business owner should be getting your name out there.  

Start networking first and tell everyone what you’re doing. Otherwise, you waste time getting in front of clients. A website is important but can come later. If you feel you must have something set up, put together a one-page landing page. You can go back later to set up a full website.  

3.       They don’t open a business bank account. They use their personal account for business and comingle everything. This causes a headache at tax time trying to separate everything out for the tax accountant. Valuable deductions can also be lost when things aren’t tracked. Not to mention, you’ll have no idea how much money your business is making and what your expenses are.

Avoid the headache. Go to the IRS website and request an employer identification number for your business (commonly referred to as FEIN). Take this number with you and open a business checking account. Use this account for all business transactions. Your tax preparer will love you.

4.       They don’t track their financial transactions for their business. Even getting started with a spreadsheet to record business income and expenses is better than not keeping track at all. You might think you don’t have enough going on to keep track of your business transactions. But it can quickly get out of hand once things start picking up. 

Take the time now to put a process in place to sit down and regularly record your business financial transactions. Whether you’re using bookkeeping software or a spreadsheet, taking 10 minutes a day to record transactions will keep you from getting overwhelmed and putting it off completely. Growing your business depends on knowing where it stands financially. You can’t grow if you don’t have a clear picture of how much money you’re making.  

5.       They try to be on all social media doing all the things. They’re on LinkedIn, Instagram, Facebook, and TikTok. They’re exhausted from writing blogs, and recording reels and videos so they end up skipping posting because they’re spread too thin. Before you know it, they disappear for a while and come back and no one knows who they are because they’re not consistent.  

Instead of trying to be all over every social media platform, pick one or two social media sites to focus on. And then put all your effort into showing up on those platforms. Figure out what you like to do. Do you like to write? Start a blog and share written content. Enjoy recording video? Start a YouTube channel, do lives or record short videos. 

The key is to find something you’ll keep up with consistently so people see you all the time and get to know you and your brand.  

6.       They offer something no one wants. Creating an offer in a silo without knowing who you’re selling to and what they need help with will make you waste a lot of time only to launch your program or offer and realize you’ve got no one signing up.  

Instead of creating a service or offer and then going out trying to find people to buy it, research your market. Get to know your buyer and what they’re having trouble with. Then design a product that will address their issues. By doing this, you’ll save time and know that you have an offer that people are waiting to buy.  

7.       They don’t set long-term goals. They focus on what’s happening right now but they neglect to sit down and set goals for the long term. They may skip taking the time to put together a business plan and just jump in without having fully thought out what they want their business to be.

Take time to write a business plan. There are many free templates online that you can use. It doesn’t have to be a long, fancy business plan.

But documenting your vision and mission, who you plan to serve, and how you’ll do that will help you have a cohesive brand and offer for your clients. You’ll have a central mission to keep you focused as you grow your business.

Have you done any of these things? Is there anything you’ll change going forward? Let me know!