Biggest Small Business Mistakes

There are some mistakes that small businesses often make, so, we have looked to the fantastic CarolRoth.com contributor network of business owners, experts, advisors and entrepreneurs to find out what they think are the biggest small business mistakes. Hopefully, this list can help you avoid similar pitfalls in your own small business. Their responses are presented below, in no particular order.

You may notice some similar ideas listed below, but I kept them separate, as something in the way one is framed may resonate differently with you.

*Please note that all information listed below was submitted by our community members as a courtesy. Intercap Merchant Partners, LLC, Carol Roth and our affiliates neither endorse nor recommend any of the following and should you purchase from or hire anyone, please ask for references and do your due diligence first.

1. Poor Business Financial Health

One of the biggest mistakes small business owners make is not prioritizing the financial health of their business. Financial management and cash flow are key. Poor bookkeeping, mixing personal and business finances, or failing to monitor expenses can lead to financial instability. Cash flow is the lifeblood of any business—without it, operations can grind to a halt. By prioritizing financial health, business owners can ensure their business remains sustainable and resilient.

Thanks to: Deltrease Hart-Anderson of D Hart Accounting Practitioner, LLC.

2. Confusing Busy With Success

A mistake I often see small businesses make? Confusing activity with progress. They hustle hard by posting daily, attending every event—but without a clear strategy, it’s just noise. Being busy doesn’t equal productivity. The fix is to take a step back. Define specific, measurable goals, then align daily actions to them. Clarity beats chaos every time, and you will find you are less stressed, and are focused on the right things that will progress your business.

Thanks to: Steven Mitts of Stevenmitts.com.

3. Delegation Makes You Smarter

The biggest mistake I see small businesses make? Trying to do everything themselves. It’s understandable—your business is your baby, and you want full control. But here’s the thing: wearing every hat can hold you back.

When you’re stuck juggling bookkeeping, social media, customer support, and other tasks, you're taking time away from what really matters—growing your business. It’s easy to burn out, and when that happens, so does your momentum.

Thanks to: Lisa Sicard of Small Biz Tipster.

4. Not Planning for Contingencies

Not planning for contingencies is a major mistake (even today) small businesses are making. Unexpected challenges, like supply chain disruptions or economic shifts, can hurt operations if you’re unprepared. To fix it, businesses should create a contingency plan that includes anticipating potential risks and outlining steps to mitigate them. When building a financial cushion, diversifying suppliers, and staying flexible, businesses can weather unexpected storms without losing momentum.

Thanks to: Douglas Johnston of Bell Fire and Security.

5. Retain & Re-acquire Customers

A common mistake small businesses make is focusing only on getting new customers while neglecting retention and re-acquisition. Repeat customers are easier to sell to, spend more, and refer others, yet many businesses fail to nurture them. Past customers who left can often be won back with a simple check-in or special offer. Sustainable growth comes from keeping and re-engaging customers, not just constantly chasing new ones.

Thanks to: Cory Collins of Ample Opportunity, Inc.

6. Too Small to Matter

Sometimes, small business owners believe they're too small to matter to journalists and those they want to woo, but that's simply not the case. Journalists will be interested in relevant, timely, interesting stories with a good hook that appeals to their readership. The size of the business is a separate thing! Work on growing that network and honing your pitch and then, just do it! You won't have a 100% success rate but that doesn't matter. Go go go!

Thanks to: Rhea Freeman of Rhea Freeman PR.

7. Underusing Business Insights

Small businesses often overlook data capture and analysis. This hinders their growth and profitability, as they can't identify the most cost-effective client acquisition channels or calculate margins for different service or product types.

Setting up a lean data capture, processing, and summarizing system builds a feedback loop to oversee and improve business activities.

Thanks to: Michael Sena of Senacea Ltd.

8. A Mistake that Costs Millions

One of the biggest mistakes small businesses make when trying to scale is treating marketing like a checklist of tactics rather than a unified strategy. They run ads, post on social or invest in SEO without connecting the dots. Without alignment, results are inconsistent, messaging is diluted and budgets are wasted. Real business growth happens when every channel supports the others and decisions are made with shared data and strategy.

Thanks to: Natalie Le of https://ormi-media.com/.

9. Focus on Customers>Collateral

Don't waste money on fancy brochures/letterhead/business cards. Until your business is launched, put your budget into things that help fill your pipeline with customers. Getting your URL/website up and running is key. Create online stationery for proposals/invoices/order cards online/make downloadable materials as leave behinds for people looking for more information to help find clients quickly. Find reference customers, use them to get testimonials/referrals. Dress things up more later!

Thanks to: Paige Arnof-Fenn of Mavens & Moguls.

10. Trust and Verify

The biggest mistake, and sadly I did this more than once, is taking a vendor's word for it without checking their references. You should always, without a doubt, check people's references before paying for anything. There are so many people out there that exaggerate their experience or capabilities; it is now a requirement of ours to check three references from any new vendor we do business with. The same goes for new clients, we make them pay upfront before we even start on new work.

Thanks to: Ben Walker of Ditto Transcripts.

11. Social Media is Mt. Everest

Gurus sell '10 Steps to $10k on IG' and they are excellent at sales! The testimonials! The No Risk guarantees! The hope of consistent sales!

As small businesses, we need to take a hard look at our resources, time and ABILITY. And we need to test.

If your clients aren't looking for you on SM, you aren't a 10/10 with charisma and time to spare, social media is your Everest. And which of us seek out a herculean challenge to add to our lives?

Thanks to: Cathy Mitchell of WPBarista.

12. Two $10,000 Mistakes

When we started our business, my partner and I divided the receivables and the payables functions. We each made a $10,000 error in our first year--one we could not afford! BIG MISTAKE. The fix? We hired our first bookkeeper. Spoiler alert: she cost us less than our mistakes.

Thanks to: Barry Cohen of AdLab Media Communications, LLC.

13. Delegation is Critical

One thing that I have noticed is that entrepreneurs seem to wait too long to delegate responsibilities or tasks. This hinders their ability to grow and scale their companies in the way that they envisioned. Not letting go of enough means that they are focused on items that slow down the process of growth.

Thanks to: Brad Burns of Burns Holding Corp.

14. Legally Protect Your Business

As a business lawyer and entrepreneur, the biggest mistake I see small businesses make is not legally protecting their business from the start. Skipping this step often results in serious issues down the line, from liability risks to intellectual property violations. Taking the time to set up proper legal protections early on can save a lot of headaches and expenses in the future.

Thanks to: Amira Irfan of A Self Guru.

15. Execution is About People

From my coaching experience, the biggest mistake small business owners make is obsessing over strategy and action steps while completely overlooking the mindset of their team. The execution isn’t just about tasks. It’s about people. When your team doesn’t feel ownership, even the best strategy falls apart. The real success comes when leaders prioritize not just what needs to be done, but how their team thinks, collaborates, and feels about the mission.

Thanks to: Tetiana Artemova of Capslook Magazine.

16. Clarity Converts

One of the small businesses' biggest mistakes is trying to appeal to everyone instead of clearly defining their niche. Marketing becomes diluted without a focused message and audience, and conversions suffer. I always say that clarity converts. The more specific your offer and positioning, the easier it is to attract aligned clients, build trust, and grow sustainably.

Thanks to: Kristin Marquet of Femfounder.

17. Get to the Point!

A muddled, unclear value proposition/marketing message. This is actually a cardinal sin of businesses large and small. If you can't plant a vivid and brief "picture" of the core of your business in someone's mind in under 45 seconds, or if you're just plain confusing, you lose.

Thanks to: Steve Woodruff of Clarity Fuel.

18. Business BeLIEf Blunder

Biggest business blunder was beLIEving I had met an awesome partner who knew the industry, loved business, and would contribute to its growth. I beLIEved this was a great decision. Fat farce friends. Quickly, I was taking phone calls at all hours, awaiting any contribution, leaving notes to do chores, and ended up giving the silent treatment! Partnership is a relationship. Prepare wisely. Legally, my beLIEf gave the partner 50% of my business! My grace, it was quick, and my fabulous attorney.

Thanks to: Andrea L. Wehlann of Ganga Moon Yoga & Reiki Skool.

19. Don't Rest on Your Laurels

The biggest mistake a small business can make is assuming that, because you have clients, you will continue to have clients. You need to be continually marketing your products or services. There should always be clients in your sales pipeline. And if you don't know how to market yourself, hire someone who does!

Thanks to: Deborah Laurel of Laurel and Associates, Ltd.

20. Unstoppable... Almost!

Passion? Belief? Courage? Small business entrepreneurs have infinite passion, belief, and courage. "Change" is our middle name.

But what would you do when you are facing a hard truth? Unbridled passion blinded me. It was so easy to lean on one major client for our main source of cashflow... until, with no notice, this client turned off the tap for all small business vendors!

Protect your passion by keeping your vision clear, especially when things are going well. Numbers don't lie.

Thanks to: Jean Chow of MsBizWiz.

21. Save Now, Pay Later

One of the biggest mistakes small businesses make in hiring a marketing agency is NOT ensuring the agency has experience in their industry. Too often, small businesses focus on price rather than experience—understandably. Getting locked into a contract with an agency that has stellar case studies (but not in their industry) can result in long-term headaches and will end up costing more money than working with an agency that is better aligned to meet their needs in the first place.

Thanks to: Bernard May of National Positions.

22. Reach the Right People

One of the biggest mistakes small businesses make is trying to speak to everyone. Without a clear audience, messaging gets muddy—and that means low engagement and wasted spend. At Pelicoin, knowing who uses our crypto ATMs has shaped everything from content to local ads. The more specific you are, the more effective (and efficient) your marketing becomes.

Thanks to: Jordan Figuerdo of Pelicoin Bitcoin ATMs.

23. Scaling Too Quickly

The biggest mistake small businesses are making, especially in 2025, is scaling too quickly without proper planning. Rapid expansion can strain resources, overwhelm staff, and lead to customer dissatisfaction. It's crucial to establish a solid foundation before pursuing growth. This involves perfecting core operations, testing new markets cautiously, and ensuring that cash flow, team capabilities, and processes are all scaling in harmony. Premature scaling often results in issues throughout.

Thanks to: Mike Kocsis of Balance My Hormones.

24. Neglecting Authenticity

Neglecting the power of authentic storytelling is something I have noted to be an issue. In the travel industry especially, personal narratives and genuine experiences resonate deeply with audiences. Small businesses often focus solely on promotions and services, overlooking the importance of sharing their unique stories and the stories of their customers. Embracing authentic storytelling helps businesses to build stronger connections, foster trust, and differentiate themselves.

Thanks to: James Thai of James Travel.

25. Not Delegating Enough

The answer to this question is definitely attempting to handle every aspect of the business alone. Delegating tasks to skilled professionals not only enhances efficiency but also allows business owners to focus on strategic growth. By building a competent team and trusting them with responsibilities, businesses can achieve better results and avoid the pitfalls of burnout and limited expertise. It might not be easy at first, but doing so can lift a heavy weight from business owners.

Thanks to: Tony Nutley of UK College of Personal Development.

26. Staying In Their Comfort Zone

Running a business demands personal & professional growth. If you stay just as you were when you launched throughout the business lifecycle, your success will be limited, & your company will stagnate. I learned this firsthand. As an introvert, I struggle with networking. However, I quickly realized I needed to get comfortable with & conquer that anxiety. I didn't become the life of the party. But I can confidently talk to people & forge new relationships that drive my business forward.

Thanks to: Laura Gariepy of Every Day by the Lake, LLC.

27. Neglecting Cybersecurity

I would have to say, neglecting cybersecurity. In an era where digital transformation is vital, overlooking robust cybersecurity measures exposes businesses to data breaches, operational disruptions, and reputational damage. Conducting regular cybersecurity assessments and implementing strong security protocols are essential to safeguard assets and maintain customer trust. Also, create policies and protocols so all team members are aware of things like scams and important tech updates.

Thanks to: James Bandy of TriVista Digital and Technology.

28. You Can't Do it All

One major mistake I’ve seen small businesses make is waiting too long to delegate or outsource key responsibilities—especially in HR and compliance. Trying to juggle payroll, hiring, and regulations alone can lead to burnout or costly errors.

At Canal HR, many clients come to us after realizing the hard way that one missed deadline or filing mistake can lead to serious penalties. You can’t—and shouldn’t—do it all.

Thanks to: Mitch Chailland of Canal HR.

29. Give 'Em A Nudge

The biggest mistake is not asking customers to help spread the word about your product or service. Tell them flat out that you want them to tell a friend or associate about you. Have a little card you can hand out that says: "PLEASE TELL A FRIEND ABOUT US!" Put the same thing on your website. Make sure to include it when responding to email orders or inquiries. End with: "PLEASE HELP US SPREAD THE WORD-- THANK YOU!!"

Thanks to: Mark Armstrong of Mark Armstrong Illustration.

30. Neglecting Self & Intuition

One of the main things I see small business owners do time and time again is neglect their own internal voice, their intuition. This can manifest in many ways for small business owners but often in de-prioritizing self-health, living in a dis-regulated state and ignoring internal guidance. Not only does this often cause dis-ease, it also impacts decision making for business and life success.

Thanks to: Stephanie Riel of Spiritually Real Co.

31. Identifying Target Clients

A lot of businesses don't identify their target clients earlier enough, or sometimes at all! This is one of the most important pieces of information when growing a businesses, especially if you plan on doing any kind of marketing. You can waste a lot of money writing unprofitable business material if you don't know who your target clients/customers are. It's definitely something you want to identify sooner than later.

Thanks to: Michael Cohen of Bering Insurance Partners.

32. Delegate Your Tasks

A big mistake I see small business owners make—and one I made myself—is trying to handle everything alone for too long. In the beginning, it might feel necessary, but over time it leads to burnout and missed growth.

Wearing every hat slows you down and pulls focus from your strengths. For me, that meant less time with customers and on quality service. Once I built a solid team and outsourced where needed, the business finally had room to grow.

Thanks to: Craig Ricks Jr. of Acadian Windows.

33. Hire the Best Early

I wish I had hired the best people to take over roles that I had done half-a$$ed. It took me a few years of working 18-20 hours a week before I finally hired quality people to take on a task 100% where I was doing it 10%-20%. Hire quality fast.

Thanks to: Christopher Carter of Approyo.

34. Stick to a Budget...

One of the biggest mistakes I’ve seen small businesses make—one that I’ve learned from personally—is failing to stick to a budget. It sounds simple, but it’s astonishing how many entrepreneurs either don’t create a clear budget in the first place or abandon it once things start to feel uncertain or exciting.

When you’re building a business, especially in the early stages, it’s tempting to overspend in the name of growth. Don't do it. Stick to your plan.

Thanks to: Steve Walton of SDIRA Guide.

35. Embrace Social Media Fully

Too many small businesses don't have a presence on social media, or if they do, they don't regularly post to/update their accounts. People spend an incredible amount of time on sites like Facebook, X, and Instagram, and as such, you should have an active presence on there as well.

Thanks to: Sujeet Patel of Guys Gab.

36. Not Knowing Your Customers

The biggest mistake is not knowing your customer and not trying to understand what they truly need. No matter the size of your business, you must focus on the people who pay you. First, walk hand in hand with your first client. Then, start custdev interviews. Then, hire people to talk to users. But never stop watching what they need, why they buy, and why they stay. Build a system around that; this is the real backbone of any business.

Thanks to: Asia Solnyshkina of ProSense.

37. Renounce Debt & Keep Control

Some of the biggest companies in the world borrowed money & brought in investors to get started. Maybe if you are Coca-Cola or Apple it can work. But taking on excessive debt & giving up too much of your equity can also backfire. You lose your creative freedom to determine the fate of your baby and you could easily get bogged down in excessive overhead that ends up destroying your company. Stay lean and mean and keep control. The financial and emotional freedom will be worth it!!

Thanks to: Craig Wolfe of Celebriducks.

38. Missing Cash Flow Planning

If a business isn’t completely flush with cash -at least has three months of operating cash on hand- then small businesses have significant risk if they don't have a good cash forecast. Having a proper cash flow forecast sets you up for success by adding a layer of predictability to your business. Although the cash forecast isn’t always going to be perfect, it gives you an idea of when you could potentially run out of cash. The last thing any business owner wants to do is miss payroll.

Thanks to: Jennifer Barnes of Optima Office.

39. Stick to the Script

A lady selling doll clothes at weekend fairs had a complete business plan. However, she decided to sell holiday decorations during the season, which was not part of the plan. As a result, she ended up paying too much. She didn't realize that the shipping costs almost doubled her price. This cost her money instead of adding to the bottom line, and it confused customers. Don't try to please everyone.
Stick to the Script.

Thanks to: Tom Scarda of The Franchise Academy.

40. Don't Overspend

Don't fall for people who want big multi-thousand dollar checks from you when you are starting out. Grow your biz organically and within your means. Start small and increase your business services and marketing efforts incrementally.

Thanks to: Randy Peyser of Author One Stop, Inc.

41. Thinking like a Small Business

Cliche as it may sound, the internet has allowed small businesses to be present everywhere. Hence, the mistake small businesses make is to think they're a small business and avoid thinking like a giant. They either turn too content or too risk-averse beyond a point. This stops them from being innovative and they end up losing opportunities.

Thanks to: Mayank Batavia of QuickEmailVerification.

42. Not Taking Good Advice Early

When starting a small business, it's hard to know who to trust for paid advice. It's so important early on to build a detailed plan that's right for the business. The mistake often made is not to get enough advice, muddling through with a trial and error approach. That can waste years. The key is finding an advisor or mentor who has been there & done it, and importantly who feels a good fit for you & your business.

Thanks to: Laurence Jones of L Jones Photography.

43. Invest in Marketing

The biggest mistake small businesses make is neglecting marketing early on. I made this mistake myself, thinking word of mouth would suffice. But without a solid marketing strategy, it’s tough to attract customers and grow.

Marketing is key to building brand awareness, gaining new customers, and standing out in a competitive market. Small businesses should prioritize marketing from the start to ensure long-term success. Don’t wait—invest in marketing efforts early to grow your business!

Thanks to: Ofir Sahar of Insuranks.

44. Neglecting Customer Feedback

One of the biggest mistakes small businesses make is neglecting customer feedback. Early on, it's easy to get caught up in the product or service, but failing to listen to your customers can hurt growth.

By not collecting and acting on feedback, businesses miss out on valuable insights that can improve offerings and build customer loyalty. Small businesses should actively seek feedback to adjust and grow, ensuring they meet customer needs and stay competitive.

Thanks to: Amit Doshi of MyTurn.

45. The Costliest Mistake Yet

A mis-hire doesn’t just cost time and money—it stalls momentum, damages morale, and sets the whole team back. In a small business, every seat is critical. One wrong person in the wrong role can create ripple effects that impact operations, client relationships, and culture. Avoid rushing the hire. Prioritize alignment over urgency, and treat hiring as a strategic decision—not a box to check.

Thanks to: Rob Thomas of Frederick Fox.

46. Avoid Contract Renewal Angst

When signing up for services from a vendor for your business, make sure to carefully review the length of the agreement and what are the terms to cancel the agreement when the initial term is up.

If there is language like 90 days before the initial term you must do x and y to notify us of canceling within 30 days or the agreement will auto renew, do this: 1, modify the agreement to make them responsible for notifying you before this window and 2, set a calendar task to review.

Thanks to: Pete Slaga of Schooley Mitchell -Los Angeles.

47. Following the Wrong Crowd

This is SUPER simple, but hard to skip - don't follow the crowd, even if it's a GIANT one, if it's not YOUR CROWD. We used to market to the millions. Got NO ROI! I was so caught up on reaching a TON of people, I never found the RIGHT ones. If my customers are online, I need to advertise ONLINE. If customers don't read emails, we don't E-blast, even if it's to a million people. My customers live on facebook, in small groups. So, I spend zero $ and get TONS of traction. Follow YOUR teensy crowd.

Thanks to: Suzanne Gose of Flip Flop Spanish &Spanish Geniuses.

48. The Passion vs. Profit Trap

Based on my own experience, one big mistake small businesses make is focusing on things they like rather than what would actually sell. Passion is important, but neglecting market demand for personal preference hinders growth. A balanced approach, considering both passion and profitability, is needed for sustainable success. If a product or service doesn't resonate with customers, no amount of personal enthusiasm will generate sales.

Thanks to: Mike Ortiz of Canvas Monsters.

49. Hire Right, Thrive Big

The #1 mistake small businesses make? Hiring the WRONG people. One bad hire can tank your culture, kill productivity, and drain your profits. People are your greatest asset—or your biggest liability. If you’re not hiring with precision and purpose, you’re sabotaging your success. Stop settling for “good enough” and start building a team that drives greatness. Your business depends on it.

Thanks to: AJ Cheponis of Straightline Consulting Group.

50. Don't Assume the Risk

Running a business comes with risk. One of the biggest mistakes business owners make is assuming all the risk themselves. That's not necessary, and it's unwise. An insurance policy is one of the most cost-effective ways to protect yourself from the brunt of the financial impact of risk.

Budgets can be tight, and business owners may be tempted to skip insurance to save the money spent on premiums, but then they're at risk of having to shut down because of a liability issue or other risk.

Thanks to: Melanie Musson of Quote.com.

51. Checking Employee Work Status

A lot of small businesses make the mistake of not verifying the work eligibility of their employees. If you hire someone without checking their immigration status, you'll face penalties from Immigration and Customs Enforcement (ICE) if they're found to be undocumented.

The simplest thing you can do is to use tools like E-Verify, which tells you if new hires are legally allowed to work in the U.S. Also, make sure all employees fill out the I-9 form correctly.

Thanks to: Adam Dayan of Consumer Law Group, LLC.

52. Ignoring Workplace Safety

I've seen businesses either get so busy they forget, or just think workplace safety is not as big a priority as it is, and it ends badly. Ignoring simple safety measures, like keeping walkways clear or using proper equipment, can lead to serious slip and fall injuries. These accidents hurt employees and customers, and they can also cost the business dearly in lawsuits and lost productivity.

Thanks to: Riley Beam of Douglas R. Beam, P.A.

53. Not Engaging with Community

A lot of businesses focus so much on online marketing or big-picture growth that they forget the people right around them. Locals are your biggest cheerleaders. They spread the word, support you, and keep you in business. If you’re invisible locally, you’re missing out on loyal, repeat customers.

Thanks to: Gerry Wallace of Greenline.

54. Not Tracking Cash Flow

This is a big one with small business owners juggling tasks. So much of their focus is on making sales that they don’t track what’s actually staying in the business. It’s understandable — there’s always something urgent to handle. But without a clear picture of expenses and income, it’s easy to run into trouble. You have to check your finances regularly, even just once a week, to avoid surprises. It doesn’t have to be complicated, just consistent.

Thanks to: Paul Carlson of Law Firm Velocity.

55. Not Having Liability Insurance

Unfortunately, a lot of small business owners think, “Oh, that won’t happen to me,” until it does. Like a customer tripping over loose wiring or an employee getting hurt. One lawsuit can drain your bank account fast, which is why insurance isn’t something to skip out on. It’s what keeps your business from going under if something goes wrong.

Thanks to: Alex Freeburg of Freeburg Law.

56. Don't Be Insta-Famous

Too many small businesses spend more time on their social media than working in their stores and talking to their customers and staff. Is it better to be famous or make money?

Thanks to: Rick Canale of EXOTIC FLOWERS.

57. Embrace Your Superpower!

The early years are the most challenging for startup businesses as various issues arise continually. Frustration mounts, and worse, not knowing how to handle a situation encourages quitting.

‘We only have one life to live; our duty is to live without regret.’

Our goal is to uncover what contributed to the issue, research remedies, speak with peers, and then test one new idea at a time to find the right solution. Step by step, we reach new pinnacles!

Thanks to: Elinor Stutz of Smooth Sale.

58. Establish a Foundation

One common mistake for small healthcare practices is growing too fast without first establishing a strong clinical and operational foundation. There may be pressure to expand—more services, fast hiring, a new branch, and so on. However, if systems (such as standard operating procedures) are not established and consistently used on a daily basis, it may be difficult to deliver quality, consistent patient care.

Thanks to: Dr. Katherine Rizzo of Dr. Katherine Rizzo.

59. Check On Your Team

Don't overlook the emotional well-being of their team. In the fast-paced and sometimes resource-limited world of healthcare, we tend to concentrate our attention on patients and their needs while ignoring the well-being of our staff. Dealing with mental health issues takes an emotional and physical toll on staff (not just doctors and counselors – but also those answering phones or interacting with patients in any way, no matter how small).

Thanks to: Hirely Martinez of Advantage TMS.

60. Grow Slow with Structure

Most common of all the blunders I have witnessed from small businesses, especially when it comes to service industries such as ours, is growing too fast without the requisite team or proper structure. Because we at Goodbee Plumbing understood from the beginning that each technician we brought on represented our family business, rushing to expand without the right people could do more harm than good.

Thanks to: Allison Harrison of Goodbee Plumbing.

61. Lacking in Customer Experience

From my experience in the spa industry, the biggest mistake small businesses make is failing to prioritize customer experience. In a service-driven industry like ours, every touch-point matters. Whether it's the booking process, treatment quality, or follow-up, neglecting these aspects can result in dissatisfied clients and lost loyalty. Consistently exceeding customer expectations is essential for maintaining long-term success in this competitive market.

Thanks to: Sam Rock of Infinity Laser Spa.

62. Focus on the Long Game

A mistake owners make is treating marketing as an afterthought—only scrambling when sales drop. That rarely works. At Truck Driver Institute, we focus on steady, strategic marketing, not just big ad spends. It’s about understanding our audience and staying engaged, even when business is good. Marketing isn’t a switch to flip—it’s an ongoing conversation. Stay visible, start small if needed, but be consistent. Trust (and business) grows from there.

Thanks to: Lauren Gast-Stevens of Truck Driver's Institute.

63. Learn to Walk Away

It is so easy when you open the doors be tempted to take whatever work comes through the door. When I started my business, I knew the type of projects that I wanted but was not very discerning because, let’s face it, even work you don’t love pays the bills.

It is a common mistake to let short-term opportunities distract you. It's hard to turn away work, but walk away from potential clients and gracefully transition clients that are not a good fit to other resources. Be picky!

Thanks to: Cynthia Kay of CK and CO Media Production.

64. Compete with Local SEO

Larger companies can be difficult to compete against when you’re early on in your business. Optimizing for local SEO has helped us compete with big names and grow our client base. Our website has dedicated service area pages showing which cities we operate in that drive us organic web traffic (which become leads) from those communities. Targeting local, long-tail keywords is a great opportunity for your small business to show up in search page rankings and generate relevant leads.

Thanks to: Thomas Samuels of Cardinal Tradeshow Displays Chicago.

65. Not Delegating Tasks

The biggest mistake a small business can make is not delegating tasks. As an owner, it's easy to want to control every aspect of the business, but that control creates limitations. If you have to be involved in every process, you're hindering the growth of the business because while you're contributing to one system, another system is stalled. For example, you can't upload products while you're on a sales call and vice versa, because you haven't delegated one of those tasks.

Thanks to: Forrest Webber of The Trade Table.

66. Not Documenting Processes

I think a lot of first-time businesses make this mistake. They develop a whole process, but fail to note down the steps they took to get there. Like how to handle customer orders, manage inventory, or even onboard new employees. And without this documentation, it's hard to recreate the same results, scale efficiently or maintain consistency when new staff join. Without clear instructions, tasks might take longer or be done incorrectly, wasting time and resources.

Thanks to: Mike Roberts of City Creek Mortgage.

67. Don't Try to Juggle Everything

When I started my own criminal defense firm, I thought handling everything from contracts to tax planning by myself would be a money saver. But was I wrong!

Trying to juggle every aspect of business management without the right expertise brought on more problems than benefits. It was a hard lesson that taking shortcuts on important tasks doesn't just drain your resources—it can stall your business's growth and detract from what really matters: serving your clients well.

Thanks to: Michael Oykhman of Strategic Criminal Defence.

68. Doing it All is Doing Too Much

One big mistake small businesses make is trying to do everything themselves. It spreads you too thin and hurts quality. Delegating or outsourcing lets you focus on what you do best—growing your business. Don’t be afraid to invest in help; it saves time, boosts results, and prevents burnout.

Thanks to: Janice Wald of Mostly Blogging.

69. Lots O'Baskets

Don't put all your eggs in one basket. Diversify to as many clients as you can, preferably in different industries so if there's a downturn in one industry, you lessen the impact. I once found that 40% of my revenue was coming from one client. I took steps to find other clients even though I was making good money from my biggest client. I forced myself to devote less time to them and more time to hustling for new clients. I came out okay a few years later when business from them slowed down.

Thanks to: Ron Katz of Penguin HR Consulting.

70. To Niche or Not to Niche

Most service professionals can easily and would love to help everyone. The truth is that not everyone wants their services. When you don't choose a niche or choose a niche that is too small, you hurt your business and its profits. So, who is the person or group you can help the most? Who hires you w/o issues and doesn't ask for discounts? Who refers you w/o you asking? Who comes back for more services easily? The thing is that when you niche, others outside of your niche will come a calling, too.

Thanks to: Maria Marsala of Elevating Your Business.

71. Simple Does Not Mean Easy

Misunderstanding that a simple strategy does not necessarily mean it's "easy." For example, starting a business could be summed up as:

1. Find a need in the marketplace
2. Create a solution to the problem
3. Market the solution to those most likely to buy

Simple? Yes. Easy? No. And thinking it will be easy or fast to get results is a mistake. Forget the "overnight success" stories and turn to real experts who are in the trenches to set realistic goals & timelines for achieving them.

Thanks to: Channing Muller of DCM Communications.

72. Hiring For the Wrong Reasons

A big mistake I see small businesses make is hiring based on convenience—like availability or a quick résumé scan—instead of alignment with company culture. It may feel like a time-saver, but a bad cultural fit slowly poisons team morale, drains leadership energy, and stalls growth. To fix this, be crystal clear on your core values, communicate them in your hiring process, and use them as a filter. Skills can be taught, but mindset, integrity, and attitude? That’s who they are.

Thanks to: Darcy Cudmore of RepuLinks.

73. Don't Forget Local Media

The biggest mistake small businesses make is neglecting the opportunity for brand exposure through earned media. Even a mom/pop opening a storefront can benefit from reaching out to their local newspaper and cable TV station to do a feature on their new venture. The cost can be $0 (if you do it yourself) or as low as $500-$1,000 if you hire a local freelancer (or even a college student) to help you write the pitch and connect with local media.

Thanks to: Brian Hyland of Cricket Public Relations.

74. Ignoring After-Sales

One big mistake small businesses make is ignoring what happens after the sale. It’s easy to focus only on closing deals, but forgetting about long-term value or customer support can really hurt your reputation. I’ve found that offering guidance beyond the purchase builds loyalty. People remember who helped them plan ahead. It’s a great way to turn one-time buyers into repeat customers.

Thanks to: Lacey Jarvis of AAA State of Play.

75. No Real Marketing Strategy

A common mistake is assuming great products or services will market themselves. I’ve seen businesses rely too much on word-of-mouth or social media without a real strategy. Without consistent outreach, it’s hard to grow. You need to be proactive in getting in front of the right audience. Visibility is just as important as quality.

Thanks to: Samuel Charmetant of ArtMajeur by YourArt.

76. Ignoring the User Experience

A major mistake is overlooking how people actually interact with your business online. If your website or service isn’t smooth and easy—especially on mobile—you’ll lose potential customers. I’ve seen too many businesses miss out just because their user experience wasn’t up to par. People expect convenience. If you don’t deliver it, they’ll move on fast.

Thanks to: Adam Young of Event Tickets Center.

77. Failing to Explain What You Do

Many small businesses make the mistake of not explaining their offerings clearly. When people don’t understand what you do or how it works, they walk away. I’ve learned that taking the time to educate your audience pays off. Clear communication builds trust and reduces confusion. It’s one of the easiest ways to stand out.

Thanks to: Jeffrey Zhou of Fig Loans.

78. Overpromising Without Planning

One mistake I’ve seen often is making big promises without understanding the full logistics. Whether it’s timelines, delivery, or follow-up, overpromising sets you up for trouble. Being realistic doesn’t scare customers off—it earns their respect. When people know what to expect, they’re more likely to return. Honesty beats speed every time.

Thanks to: Nicolas Breedlove of PlaygroundEquipment.com.

79. Trying to Serve Everyone

Trying to serve everyone is a trap I’ve seen many small businesses fall into. It feels like more clients should mean more success, but it often leads to scattered focus and weak results. I’ve found that narrowing your niche actually leads to stronger work and happier clients. You get known for something specific. That’s when the real growth starts.

Thanks to: Brandy Hastings of SmartSites.

80. Building w/o Customer Input

A big mistake is building or launching something without talking to your customers first. I’ve seen businesses spend time and money solving the wrong problems. Feedback is gold—it saves you from missteps. When you listen early, you build better things. It’s a smarter and faster path to growth.

Thanks to: Joe Schaeppi of Solsten.

81. Skipping the Human Touch

One major mistake is sounding too cold or formal when customers need connection. Even in serious industries, people want to feel heard and supported. I’ve found that being human in how you communicate makes a huge difference. It builds trust faster than any pitch. Empathy isn’t optional—it’s part of doing good business.

Thanks to: David Haskins of WrongfulDeathLawyer.com.

As always, many thanks to everyone that contributed to this article!

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