The Biggest Mistakes New Entrepreneurs Make (and How to Avoid Them)
The Biggest Mistakes New Entrepreneurs Make (and How to Avoid Them)
What I Wish I Knew Before Starting My Business
FREE Download: How to Start a Business Checklist
This guide includes:
How to plan your business
How to set up your marketing
How to build your website
And more!
All in a simple goal-oriented format.
* Disclaimer * Some of the posted links are affiliate programs. By clicking these links, I may receive monetary compensation. This will not alter the price or change the buyer's experience.
When I first launched my business, I had no clue what I didn’t know. And honestly, that was half the problem.
I was full of passion, big ideas, and late-night Google searches. I thought that if I just worked hard enough, everything else would fall into place. But like so many new entrepreneurs, I ran headfirst into mistakes that could’ve been avoided with a little more planning and a lot more clarity.
If you’re a first-time entrepreneur, this post is for you. Because truthfully? The biggest mistakes new entrepreneurs make aren’t about bad products or even lack of funding. They’re often the quiet, behind-the-scenes decisions, or lack of decisions, that slowly eat away at your momentum.
In this post, we’re breaking down the top mistakes new entrepreneurs make in their first year. Plus, we’ll break down real strategies for how to avoid common pitfalls in business before they derail your progress. Whether you're dreaming up your first offer or knee-deep in startup chaos, this list will help you get clear on what not to do so you can build something that actually lasts.
Mistake #1: Skipping the Business Planning Phase
I get it when inspiration hits, the last thing you want to do is slow down and map everything out. You just want to build the thing, launch the website, post on social media, and go. But skipping the planning stage is one of the most common startup mistakes, and it’s a big reason why so many small businesses fail early on.
Here’s the thing: planning doesn’t have to mean writing a 40-page business plan with charts and spreadsheets (unless you’re into that. I love a good spreadsheet. No judgment here). But you do need clarity on the basics.
Who are you helping?
What problem are you solving?
How will you make money?
What does success even look like for you?
Too many new entrepreneurs skip this step because it feels overwhelming or unnecessary. But without a roadmap, you’re just guessing. And guessing is exhausting and expensive.
If you want to start your business the right way, begin with a solid, flexible plan that actually fits your vision and lifestyle. You don’t need to have it all figured out. But you do need to know where you’re headed.
Pro Tip:
If the idea of planning stresses you out, grab my free Business Planner Checklist. It breaks everything down into small, actionable steps so you don’t miss anything important.
Mistake #2: Trying to Do Everything Alone
When you’re just starting out, it’s easy to fall into the “I’ll do it all myself” trap. You’re trying to save money, learn everything, and prove you can handle it. But trying to wear every hat, from CEO to social media manager, to customer service rep, leads to one thing: burnout.
This is one of the most overlooked but deadly mistakes new entrepreneurs make. You think you’re saving time or money. But really, what you're doing is stretching yourself so thin that nothing gets your full attention, including the parts of your business that really matter.
The truth? You don't have to do this alone. There are so many ways to get support that don’t require hiring a full-time team. Whether it’s joining a mastermind group, outsourcing small tasks, asking a mentor for advice, or using tools to automate your workflow, support is out there, and it can change everything.
If you’re serious about avoiding startup failure, learning how to ask for help is non-negotiable.
Pro Tip:
Start small. Even just outsourcing one task that drains your energy can free up your time to focus on your zone of genius. Try using Fiverr to outsource the tasks that you consistently avoid or overlook for as little as $5.
Mistake #3: Not Understanding the Target Market
You can have the best product or service in the world, but if you’re not crystal clear on who it’s for, it won’t sell.
This is one of the most common startup mistakes I see. It’s easy to skip over deep market research in favor of your own assumptions. Maybe you’re solving a problem you personally had, or you’re creating something you think people want. But until you’ve actually listened to your audience, surveyed them, and really understood their pain points, desires, and buying habits, you’re flying blind.
A vague target audience leads to vague messaging, which leads to... crickets.
If you want to know how to avoid common pitfalls in business, start by getting obsessed with your ideal customer. Know what keeps them up at night. Know what words they use. Know what they’ve already tried that didn’t work.
Pro Tip:
You don’t need a massive budget to do market research. Ask your audience questions on social media, send out a simple survey, or talk to a few people who fit your ideal client profile.
Mistake #4: Underpricing or Overvaluing Time
This one hits hard. Especially if you’re a service provider or freelancer just starting out. A lot of new entrepreneurs set their prices based on what feels “affordable” or what they think people will pay. But here’s the truth: pricing out of fear is a fast track to burnout and resentment.
One of the top mistakes new entrepreneurs make in their first year is undercharging for their services or not factoring in the real cost of their time. You’re not just charging for the hour you spend doing the work. You’re charging for the years of learning, the prep time, the revisions, the admin work, and the taxes.
On the flip side, some new entrepreneurs overvalue their time in the wrong areas. Spending hours fiddling with a logo or writing and rewriting their bio while avoiding the actual work of selling or serving clients.
If you're serious about how to start a business the right way, you need to know your worth, do the math, and price based on value, not emotion.
Pro Tip:
Track your time for one week to see where it’s really going. It’s eye-opening! And it’ll help you price smarter.
Mistake #5: Chasing Trends Instead of Solving Real Problems
It’s tempting to jump on the latest business trend you saw on TikTok or try to recreate someone else’s “six-figure launch” formula. But building a business around what’s hot instead of what’s helpful is a short-lived strategy.
One of the biggest reasons why small businesses fail comes down to this: chasing hype instead of creating real solutions. Trends come and go, but solving real, everyday problems for real people? That’s timeless, and profitable.
When you focus on serving your audience instead of impressing them, you build something sustainable. You create trust, loyalty, and a business that actually matters.
Yes, trends can be fun to play with in your content or marketing. But your foundation? That has to be built on substance, not sparkle.
Pro Tip:
Ask yourself, “Would this offer still be relevant a year from now?” If the answer is no, it might be a distraction in disguise.
Mistake #6: Ignoring Finances and Cash Flow
Money stuff can feel intimidating and embarrassing. But ignoring your finances is like driving with your eyes closed. You might make it a little way down the road, but eventually you're going to crash.
One of the most common startup mistakes is not keeping track of income, expenses, taxes, or cash flow. I’ve seen too many brilliant entrepreneurs run out of money. Not because they didn’t have a great product, but because they had no idea where their money was going.
Understanding your numbers doesn’t mean you have to become an accountant. It just means building a simple system for checking in regularly. When you know what’s coming in and what’s going out, you can make smarter decisions, set goals, and avoid those terrifying “uh-oh, do I have enough to pay for this?” moments.
If you’re serious about avoiding startup failure, you have to get cozy with your numbers. No matter how much you want to avoid them.
Pro Tip:
Use simple tools like a spreadsheet or QuickBooks to track your cash flow from day one. Your future self will thank you.
Mistake #7: Not Thinking Long-Term
When you're caught up in the daily chaos of launching, promoting, and trying to keep your head above water, it’s easy to focus only on short-term wins. But here’s the problem: if you never pause to think long-term, you risk building a business that traps you instead of freeing you.
This is one of those business planning mistakes that sneaks up on you. You wake up one day, realizing you’ve created a job for yourself instead of a scalable, sustainable business. You’re busy, but not necessarily building toward the life you want.
One of the best pieces of business advice for first-time entrepreneurs is this: begin with the end in mind. What kind of schedule do you want in five years? Do you want to grow a team? Sell your business? Automate parts of it? Your answers don’t have to be perfect, but they do need to exist.
If you want to know how to start a business the right way, don’t just plan for today. Plan for the kind of future you’re working toward.
Pro Tip:
Schedule a 30-minute CEO session with yourself every month to zoom out and look at the big picture. Your vision matters just as much as your to-do list.
Starting a business is one of the most exciting (and honestly, scariest) things you’ll ever do. And while mistakes are part of the journey, they don’t have to derail your entire vision.
From skipping the planning phase to undercharging, ignoring your audience, or trying to do it all alone, these are the kinds of mistakes that so many new entrepreneurs make. Not because they’re careless, but because they don’t know any better yet.
Now you do.
If you’ve recognized yourself in any of these pitfalls, take a deep breath. You’re not behind. In fact, you’re ahead of the game just by being here, learning, and preparing to do things differently.
Want to make sure your business starts on solid ground? Grab my free Business Planner Checklist to get organized, stay focused, and build with intention right from the start.
You’ve got this. And I’m cheering for you every step of the way!
I want to be transparent so that there are no misunderstandings. As an affiliate, I may earn a small commission from any products linked in this post. This is not a sponsored post, and I was not asked to recommend these products. These are products that I genuinely love and wanted to share with my audience.