Starting your own business is exciting. You get to be your own boss, work on something you are passionate about, and possibly change your life forever. But along with the excitement comes challenges, and some of the biggest challenges are the mistakes new entrepreneurs make often without realizing it.
In this article, we will combine advice from experienced business experts and real-world examples to break down the five most common mistakes new entrepreneurs make and share practical tips on how to avoid them.
1. Trying to Do Too Much Alone
What happens:
Many new entrepreneurs think they have to handle every single task themselves including marketing, accounting, customer service, product development, and more. According to Sho Dewan (Forbes, 2024), this is one of the costliest mistakes because you end up stretched too thin, burning out, and thereby slowing the growth of your business.
The VistaPrint team also warns that “trying to do it all alone” keeps you from focusing on the most important parts of your business the areas where your skills and vision are most needed.
Why it is risky:
You cannot be an expert in everything. Spending your energy on tasks outside your strengths means the important things get less attention.
How to avoid it:
Delegate: Hire part-time staff, freelancers, or virtual assistants.
Automate: Use tools for scheduling, accounting, and customer management.
Prioritize: Focus on high-value tasks only you can do.
Example:
If you are great at designing products but struggle with bookkeeping, outsource the accounting so you can spend more time creating and improving products.
2. Taking Advice from the Wrong People
What happens:
Sho Dewan warns about another mistake—listening to the wrong voices. While advice is valuable, not all advice is right for your specific business. Friends and family might mean well but may not have the business knowledge you need.
Why it is risky:
Following poor advice can lead to bad investments, wrong strategies, and wasted time.
How to avoid it:
Choose mentors wisely: Seek guidance from people who have experience in your industry.
Ask for evidence: If someone gives you advice, ask for examples or results to back it up.
Trust your research: Do not ignore data and facts in favor of someone’s opinion.
Example:
If you run an online store and your cousin tells you to “forget social media” because it did not work for them, you need to remember their experience may not apply to your own market.
3. Lack of a Clear Business Plan
What happens:
Aminat Sanni-Kamal (2025) notes that many entrepreneurs start without a solid business plan. They know their idea but have not clearly mapped out how to turn it into a working business.
Why it is risky:
Without a plan, you can easily lose direction, mismanage resources, and miss opportunities.
How to avoid it:
Write it down: Your plan should cover your target market, marketing strategy, pricing, operations, and financial projections.
Set measurable goals: Break big goals into smaller, trackable steps.
Review regularly: Update your plan as your business grows and market conditions change.
Example:
If you are opening a café, your plan should include menu pricing, monthly budget, location strategy, and a marketing timeline.
4. Underestimating Financial Requirements
What happens:
Aminat Sanni-Kamal also warns that many new entrepreneurs underestimate how much money they will need. They focus on startup costs but forget about ongoing expenses like rent, salaries, and marketing, until it is too late.
Why it is risky:
Running out of money is one of the top reasons businesses fail.
How to avoid it:
Plan for at least 6–12 months of expenses: Even if your business is slow at first, you will have a safety net.
Track your cash flow: Keep a close eye on money coming in and going out.
Separate personal and business accounts: This makes budgeting and taxes much easier.
Example:
If you budget only for buying baking equipment but forget to include the cost of utilities, supplies, and marketing for your bakery, you might run out of money before customers discover your shop.
5. Ignoring Customer Feedbacks
What happens:
Aminat Sanni-Kamal emphasizes that ignoring customer feedback is a major mistake. Some entrepreneurs think they know best and do not listen to the people actually buying their product.
Why it is risky:
Customer feedback helps you improve your products, services, and overall experience. Ignoring it can drive customers to competitors.
How to avoid it:
Ask for feedback: Use surveys, reviews, and direct conversations.
Act on it: If customers suggest improvements, take them seriously.
Monitor social media: See what customers are saying about your brand.
Example:
If several customers complain that your website is hard to navigate, making changes quickly could boost sales.
Final Thoughts
Entrepreneurship is a rewarding but challenging journey. Mistakes are inevitable, but learning from experts to avoid the most common pitfalls can and will save you time, money, and stress.
Here is a quick recap of mistakes to avoid:
- Trying to do too much alone
- Taking advice from the wrong people
- Lack of a clear business plan
- Underestimating financial needs
- Ignoring customer feedback
By staying focused, asking for the right help, and listening to others, you can give your business the best chance to succeed.
References
Dewan, S. (2024, December 21). 5 Costly Mistakes New Entrepreneurs Make And How To Avoid Them. Forbes. 5 Costly Mistakes New Entrepreneurs Make And How To Avoid Them
Sanni-Kamal, A. (2025, March 5). Common Mistakes New Entrepreneurs Make. Common Mistakes New Entrepreneurs Make
VistaPrint US. 10 Common Mistakes Made by Brand New Entrepreneurs. 10 Common Mistakes Made by Brand New Entrepreneurs | VistaPrint US
