• Skip to main content
  • Skip to secondary menu
  • Skip to primary sidebar
  • Skip to footer
  • HOME
  • ABOUT

The Fortunate Investor

Investing, Business, Saving, Debt, Money, Retirement

  • Business
  • Invest Your Money
  • Save Money
  • Get Out of Debt
  • Make Money
  • Family & Money
  • Taxes
  • Retirement
    • Retirement Calculator
You are here: Home / Business / 4 Mistakes New Small Business Owners Make

4 Mistakes New Small Business Owners Make

March 23, 2021 By Bobby | This article may contain affiliate links. For more information visit our Disclosure

4 Mistakes New Small Business Owners MakeThe journey of entrepreneurship is not an easy one; starting a business is risky and involves a lot of pressure. Taking the wrong decision or not having your priorities in order can cause grave consequences. In America, about 20% of small businesses fail in their first year. This percentage, although minute, is troubling and a perfect reflection of the mistakes many first-time business owners make. Here are a few mistakes you should avoid to put your business on the path to success.

Not having a business plan

You would think this is one thing a business should not skip. However, many business owners go into business without creating a clear plan. Although time-consuming to put together, a business plan goes a long way to giving the company a sense of direction and purpose. The business plan gives you the chance to evaluate your target market and competition. It also gives you a fair idea of your budget, expected profit margins, marketing plan, financial plan, etc. Without a business plan, the business would fail within a short time.

Not protecting intellectual property

New business owners often overlook the importance of protecting your intellectual property. The assumption is, it is a legal component that would only matter when the business expands. This mistake has often put small businesses in dire situations. New businesses need to protect their intellectual property, such as their patents, copyrights, and trademarks. Law firms such as WyoLaw Law Firm are available to offer advice on securing your intellectual property and avoiding harming your business.

Overspending

There are a lot of things to do and think about when you launch your business. You may want or need retail or office space, employees, resources, equipment, and so on. However, most business owners’ mistakes include spending more than they can afford on these components, causing them to lose money faster than they make it. It is crucial to be conservative in your spending. Create a budget to help identify necessary costs from those that can be put on hold until a later stage in the business and stick to it to prevent overspending.

Undervaluing and underpricing products and services

Usually, new business owners undervalue and underprice their products to gain more customers by offering lower prices, in turn, undercutting their competitors. On the other hand, some businesses are not aware that they are undervaluing their products and services because they did not conduct enough research to determine the market price. Quite often, these low prices give customers the idea that the business owners do not have faith in what they offer, and instead of attracting customers, it sends them away. For a business to last the one year mark, know the market price. Instead of underpricing your business, find a unique twist to stand out from your competitors to attract more customers.

There are several mistakes small business owners make, causing them to fail. Knowing these mistakes would help you prevent them from doing the same and put you on the right path to success. 

Primary Sidebar

Popular Articles

How to Financially Prepare When a Loved One Needs Bail

How to Financially Prepare When a Loved One Needs Bail

No one talks about how financially draining it can be to help someone you love get out of jail. It’s … Read More about How to Financially Prepare When a Loved One Needs Bail

What To Think About When Starting A Law Firm

What To Think About When Starting A Law Firm

Getting your law degree is a big accomplishment. What’s even more ambitious and rewarding is wanting … Read More about What To Think About When Starting A Law Firm

Mastering Work-Life Balance in a High-Speed Office World

Mastering Work-Life Balance in a High-Speed Office World

Work Life Balance Overview In today’s fast-paced world, achieving a balance between work and … Read More about Mastering Work-Life Balance in a High-Speed Office World

Beyond Allowance Teaching Teens to Manage and Grow Their Money

Beyond Allowance: Teaching Teens to Manage and Grow Their Money

Teenagers get a tough time of it in many circles these days, accused of any number of moral … Read More about Beyond Allowance: Teaching Teens to Manage and Grow Their Money

Tree Care Tips All Homeowners Need to Know

Tree Care Tips All Homeowners Need to Know

Homeowners with trees on their property will understand the importance of ensuring they're healthy … Read More about Tree Care Tips All Homeowners Need to Know

Footer

TOPICS

SAVE MONEY
INVEST MONEY
REDUCE DEBT
MAKE MONEY
FAMILY & MONEY
TAXES
START A BUSINESS
RETIREMENT

THE FORTUNATE INVESTOR

ABOUT US
ADVERTISE
CONTACT US

The Fortunate Investor focuses on personal finance topics to build wealth. Topics include saving money, investing, managing debt, family and money, taxes, making money, college planning, starting a business, coupons and retirement.

SOCIAL MEDIA

FACEBOOK
TWITTER
PINTEREST
YOUTUBE

Copyright © 2025 Fortunate Investor. All Rights Reserved. | Disclaimer & Disclosure | Privacy Policy | Terms of Service