The Top 5 Mistakes New Entrepreneurs Make (That Cost Them Thousands)

Starting a business is exciting — the ideas, the logos, the launch party! But once the confetti settles, reality kicks in. Suddenly you're the CEO, the accountant, the marketing department, and the customer service rep. And mistakes? They come fast.

Some lessons you don’t have to learn the hard way... especially the ones that can drain your bank account.

Here are 5 common mistakes new entrepreneurs make (and how to avoid them so your business keeps more of its money).

1. Pricing Too Low (Because “I’m Just Getting Started”)

Let’s say it louder for the folks in the back: undervaluing your work doesn’t build loyalty — it builds burnout.

Too many new business owners set prices based on emotion or fear rather than strategy. The result? You’re booked and busy… and still broke.

The Fix: Do the math. Factor in your time, expenses, and profit goals. A pricing strategy session can help you make sense of your numbers and create rates that are fair and sustainable.

2. Poor (or Nonexistent) Record-Keeping

Receipts in the glovebox. Invoices in your inbox. That one expense you swear you’ll remember.

If your “system” is vibes and screenshots, we’ve got a problem.

Not tracking income and expenses properly leads to overpaying taxes, missed deductions, and a whole lot of stress during tax season.

The Fix:Invest in solid bookkeeping — whether you do it yourself with software or work with a professional (hi, that’s us). Clean books = better decisions and smoother tax filing.

3. Mixing Business and Personal Finances

Buying groceries with your business card? Paying contractors from your personal account? It might feel harmless, but this habit is one of the fastest ways to mess up your financial clarity and your legal protection.

The Fix: Open a separate business bank account. Use it only for business income and expenses. This helps with bookkeeping, taxes, and keeping your LLC protections intact.

4. Doing Your Own Taxes (Without Knowing What You’re Doing)

Look, we love a DIY moment — but taxes are not a Pinterest project.

Google can’t tailor advice to your specific business. Filing incorrectly could mean missing out on thousands in deductions — or worse, triggering an audit.

The Fix:Hire a professional or book a tax prep strategy session. We’ll help you file accurately and uncover savings opportunities you probably didn’t know existed.

5. Skipping Coaching Because “I’ll Figure It Out”

Google is great for recipes. Your business deserves more. Trying to figure everything out alone can slow your progress (and cost you thousands in missed opportunities, bad decisions, and preventable mistakes).

The Fix: Work with a business coach who gets it. We’ve made the mistakes — so you don’t have to. We’ll guide you through pricing, taxes, systems, and growth strategies tailored to your business goals.

Bottom Line: Mistakes Are Inevitable — But They Don’t Have to Be Expensive

Starting a business doesn’t come with a rulebook. But it can come with support.

At In The Moment Financial Services, we offer bookkeeping, business coaching, and tax prep designed to help you avoid these exact pitfalls — and keep more money in your business.

🔗 Book a Strategy Session Today

Let’s make sure your business decisions are smart, intentional, and profitable — right from the start.