Jasmine Birtles
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7 most common business mistakes new entrepreneurs make
Razwana Wahid
24th Jun 2023
Updated 24th June 2024
What is it many new businesses have in common? They tend to make the same mistakes when they start out. But if you’re thinking of starting a business, don’t panic! We’ve come up with this handy guide of common mistakes and how to avoid them, so you can set yourself up for success.
My experience as an entrepreneur
My Experience as an Entrepreneur
Ask any entrepreneur why they left their corporate life behind and they’ll normally tell you one of three things:
- To do what they love full time.
- They want to be their own boss.
- To live the dream.
They wanted to be free from the shackles of their 9-5 job. Focusing on doing what they really enjoy. Something that gives them back just as much as they put in.
And that’s exactly how I felt when I left my corporate position in early 2015.
Starry-eyed with a head full of dreams, I started on my entrepreneurial journey with expectations of how this new life would be:
- Clients would flow to me when I wanted
- I’d work hard and be rewarded for every risky move I made
- Every day would be uplifting
Only it wasn’t quite the case.
I was working more hours than I had in my previous job for a start. I was also trying many new things, only to see them fail. I also was seeing my bank balance dwindle with every passing week.
So I spoke to other business owners to see if they could relate. As I started to scratch beneath the surface, I saw that they felt the same. In fact, we had all made the same seven business mistakes.
Business mistakes that were severely hindering our ambitions.
MISTAKE 1: EXPECTING SUCCESS TOO SOON
No matter the foundations you start off with, nothing ever goes to plan. And expecting your business to be an overnight success is tempting disappointment on a grand scale.
While success in business may take months rather than years, it helps to keep a monthly log of everything you tried, what worked and what didn’t.
At least then, when you assess your progress in six months, you have a clear idea of exactly where you’ve been.
Make sure your business plan covers a realistic first three years. Assume you won’t make any profit in the first year – this will help you ride out the ups and downs of a tough set up year while you find clients and spend on marketing.
MISTAKE 2: CONSTANT COMPETITION COMPARISON
Keeping one eye on your competitors is smart for deciding how you’ll stand out in a crowded market.
However, this becomes toxic when all you do is compare yourself to them, especially if you feel dejected when you read their success stories.
Alleviate this by cutting off comparison altogether. Unsubscribe from their email lists, stop following them on social media and block updates from the Facebook groups that constantly scream about success stories.
This means you decide when you want to update yourself on their progress, rather than having the information pushed in your face all day.
Think about what you don’t see behind the scenes. They might have a partner with a high income, which lets them take more risks than you could afford in your first year. Or, they might have more experience in the industry than you – and that means starting with more contacts.
It’s easy to take what we see as ‘success’ at face value. But remember that what you see on social media or in webinars and networking events is only what people choose to show you. They might be financially better than you – but have other problems that you don’t.
MISTAKE 3: IGNORING THE STATS
Measuring statistics isn’t reserved for those making more than six figure incomes.
Even if you have a small email list and aren’t hitting your monthly income goals, measuring what works and what doesn’t is a strong way to start as you mean to go on.
Look at email open rates for different subject lines, identify which activities get the most traffic or make the most money, and keep a monthly log of them. Do the same with your social media analytics, too.
Then plan to do more of those activities to build your business. As you grow, consider investing in business intelligence software to help you make better informed decisions, improve efficiencies, track goals and growth.
MISTAKE 4: GETTING TOO SOCIAL
Social media’s expertly tailored to speak to one of the most basic of human needs – connection. This is why so many people spend so much time browsing their X feed, scouring Facebook or double-tapping Instagram.
And most entrepreneurs assume time on social media’s time well spent.
The truth is, while social media does help build your brand, it’s an investment for the long term. Currently, if the time you spend on social media sites doesn’t bring a return, then your time isn’t an investment – it’s a waste.
To help structure your day better, spend an hour on social media in total, and stick to the sites where your customers are more likely to be.
MISTAKE 5: SUFFERING FROM SHINY OBJECT SYNDROME
Shiny object syndrome for entrepreneurs is centred on buying courses.
With a shiny, new course being released by your favourite teacher, it’s easy to get sucked in and assume it’ll have the golden bullet to skyrocket your business (especially when the sales copy’s so convincing).
To decide if it does, take a look at what courses or tools you’ve purchased in the last 12 months. How many of them have genuinely moved your business forward? How many of them have helped you achieve your goals?
Remedy this by either setting yourself an income goal, after which you can buy something else, or take a 12-month purchasing fast. Then focus your energy on using the courses and tools you already have to meet your goals (before you go on a buying spree again).
Shiny new object syndrome can also be about getting ahead of yourself. Maybe you have a great idea for a new product, or grand plans for a launch that you can’t really afford. Take time to consider whether you have the resources (mental, physical, financial) to pull off the new idea. If not, build it into your future plans.
It is better to stick with a small launch and bespoke service as you grow from the ground up than overwhelm yourself early on.
MISTAKE 6: WORKING ALONE
Working from home, especially after you spent years working in a busy office, can be the most difficult adjustment to make as a new business owner.
The silence in the room, the lack of water-cooler conversation, the voices in your head. It all takes a toll. Humans are social creatures after all!
While you may not replace old colleagues with new ones, you can explore where you live for viable co-working spaces and café’s to work from a few times a week.
Take this a step further and ask friends who they know that’s also a solo-preneur. Then make plans to meet with these people weekly so you can co-work together. Solidarity!
There are lots of co-working spaces in towns and cities. You can hire by the month but, importantly, often by the day. It will expand your network as you meet other local business owners, and give you that office feel to keep you focused.
MISTAKE 7: CONSTANT FREELANCE MODE
When you’re a service provider and first start out, it’s easy to get sucked into the 1-1 client relationships and still exchanging time for money.
Although this can be fruitful when landing a client that pays higher fees, it can limit financial and creative growth if working with clients is all you do.
Be brave and take half a day a week (or every fortnight if weekly is too much of a stretch) to think of the bigger picture.
How can you turn your services into a revenue-generating product? What joint venture opportunities can you identify? Can you create a course or write a book that teaches your expertise?
We’ve all been there; stuck in our own heads and wondering when the day will come when business becomes fun. We went solo to enjoy what we do!
Know that it may take longer than you planned, and the course of events will change more than you care to admit, but keep at it and you’ll be one step closer to living the dream.
Razwana Wahid is the founder of Relentless Movement. A copywriting service for coaches who want to write bold and sell big. She’s the author of the definitive game plan for coaches to brand your business, market your services, and run your coaching practice like a pro.
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Great advices and encouragement. I read them all. I want to start my own business here in the Philippines but competition is tough. And I want to have my own website but don’t have the knowledge to create one. Please help. More power to the MoneyMagpie staff! Thanks!
Good idea If you use a site like Weebly or Wix it’s easy to create your own site. Take a look at those. keep going!
I’m thinking of starting a small business selling unique sweet cones for both adults and children. I plan to start small in my local area (maybe start a Facebook page) and then build up. I just wondered what legal obligations there are? Also would I need to inform my landlord and declare this to the tax office?
Some tips of how to get started would also be appreciated.
Many thanks
That sounds like a really good idea Vicki. If you are making the sweets yourself then there is a certificate you need to get. Take a look at our article here https://www.moneymagpie.com/make-money/make-money-selling-cakes which has a lot of info on that. If you are having lots of people coming and going, maybe setting up extra ovens or similar in your home then yes, you should let your landlord know. If it’s just something you are running from home in terms of doing the admin, phoning etc then it’s probably not necessary. You will need to contact HMRC when you start, or… Read more »
Excellent advice here from Jasmine, as always. Looks like the legal side is covered! Since you’re starting local, I advise you to not invest your time in Facebook or other social media just yet. Ensure you have a market of hungry customers first (sell at local markets, sell to stores that will sell the cones with other things they already sell) and build from there. Once you have a basic monthly income from it, you can then move some of the marketing onto social media. This does two things: 1. Validates that there’s a market for what you’re selling 2.… Read more »
Hi Abdul – there’s a positive in your experience with seeing someone doing the same thing as your idea, or your invention. It means a market already exists – which means there’s room for more than 1 player.
There are so many marketing agencies, or copywriters in the world. I’m one of them, and the pool is big enough for all the fish!
In terms of money and family support – everything won’t be in place to start your business the right way, or at the right time. The secret is simply to start. Start small and build from there.
I have had many ideas but as soon as i research more on the internet I find someone somewhere is doing exactly the same. Or that the great invention idea already exists. Another thing that knocks me down is the fact I haven’t got money to start with or people to support me in starting.
Hi Abdul. Often when the idea already exists, it means there’s a market for it and you’re on the right track!
When you come across this, ask yourself: what can I create that buyers of this product will also want? Think about when you buy shoes and you’re offered accessories like brushes and creams to keep the shoes in good condition – these are supportive products that the market is interested in.