When it comes to learning, I pay attention to other people’s mistakes because I can learn from them. That way, I don’t have to make the same mistakes myself.
Whether you’re new to running a small business or you’ve been at it for years, here are 23 points worth going over. Some you’ll already know. Others might save you a costly mistake.
Let’s get started!
1. Don’t Just Do It
You’ve probably heard people say “just do it” when they talk about diving right in. That mindset doesn’t really apply to starting a business.
It’s great to have a go-get-it attitude and stay motivated, but don’t jump into starting a business without doing your homework. Don’t make a decision in business without taking the time to research it first.
You may have a gut feeling that you have a great idea. Just make sure you back it up with solid research and planning. When you take your time and plan effectively, you’ll reduce errors, hasty decisions, and risk.
2. Don’t Take Your Eyes off the Books
One of the most important parts of running a business is managing the finances of your operation. That means keeping track of the revenue coming in and the expenses going out.
When you’re on top of the financial side of your business, you won’t run into surprises. You don’t want to wake up one day and find out you don’t have enough money to make payroll, or discover that you’ve been losing money without realizing it.
When you keep a close eye on the books, you’ll be in more control, make better decisions, and increase your chance of success.
About 22% of new businesses close within their first year, according to Bureau of Labor Statistics data (LendingTree, 2025). Poor cash flow management is one of the most commonly cited factors behind small business failures (SMBcompass, 2026). Keeping your eyes on the books won’t guarantee success, but it puts you in a much better position to catch problems before they become serious.
3. Don’t Stop Planning
People who plan consistently are usually organized and have a good grip on what’s going on in their business. Never make a major decision without looking into the matter and planning it out.
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I’ve had plenty of good ideas over the years. More than once, I jumped in without planning and missed a crucial piece of the puzzle. That mistake derailed the whole project.
Get into the habit of planning. The more you plan, the easier it gets.
Your plan doesn’t have to be a 40-page document outlining every detail. It can be as simple as a one-page document or a list. Do what works best for you, and plan before you move ahead.
4. Don’t Forget What Keeps Your Business Alive
Identify the one thing that keeps your doors open. Is it a special recipe, customer service, an exclusive product, or the quality of a service you offer? It could be your pricing or the convenience of your location.
Whatever it is, it’s just as important as your customers, since it’s the reason they spend money with you in the first place. Protect it, and look for ways to improve it, rather than changing it without good reason.
5. Don’t Hide From Unhappy Customers
Any business owner dreads customer complaints and avoids them like the plague. But customer complaints are hidden gems. They’re feedback from your customers, and a complaint can reveal an underlying problem you didn’t know about.
When you take each complaint seriously, you can refine your products, services, and customer service. Keeping track of complaints also helps you identify trends and recurring problems.
The next time you get a complaint, use it as an opportunity. Get all the information you can, and turn an unhappy customer into a satisfied one.
6. Don’t Underestimate Your Team’s Talent
I see this a lot in large corporations. Management hires someone from outside the company for an executive position, assuming outside talent is better than the people already on staff. Sometimes that person knows little about the industry and ends up being a poor fit. It doesn’t happen every time, but it happens often enough to be worth watching for.
Before you hire from outside the company, check the talent you already have in your current workforce. People hired from within already have experience, know the industry, and understand how things work.
Experience within the company is, in most cases, more valuable than outside industry experience. Even with industry experience, each company has its own way of doing things. An outsider will take time to adapt to your company’s culture, where an insider already has that experience.
Even if an insider doesn’t have every skill needed, they can learn what’s missing through online courses, a local educational program, or on-the-job training.
If you don’t find the talent you need within the company, then hire from outside.
7. Don’t Close Deals on a Handshake
Never close a deal on a handshake, and here’s why. Making a deal on a handshake is perfectly fine, and when you shake on it, you should be able to trust the other person. But once the deal is set, the terms you agreed on need to be documented.
You want both parties to be clear on every part of the deal. There’s too much that stays unclear with a handshake agreement. If a problem comes up, you can’t go to court and say you had a verbal agreement, because it becomes your word against theirs.
Another issue with verbal agreements is that people forget the details. When everything is documented, it’s easy to get clarification by reviewing the paperwork.
So even if the deal starts with a handshake, the final terms need to be written down, and both parties need to sign it.
8. Don’t Forget About the Pros
Don’t overlook using professionals for sensitive projects.
Running a business involves many tasks, and over time you’ll get experienced in a lot of them. But some tasks are worth outsourcing or handing to a professional.
Here’s an example: unless you’re an expert marketer, you may want to outsource your marketing. Even with a solid marketing background, a professional typically has more experience and a better grasp of what works in your industry. A good marketing professional is worth their weight in gold.
IT is another area where you might want a professional. Even if you’re knowledgeable, a professional may be the better route for complicated jobs.
9. Don’t Sugarcoat Things for Investors or Customers
Whether you’re presenting your business, products, or services to investors or customers, don’t sugarcoat it or set expectations so high that you disappoint everyone, including yourself.
You’re better off highlighting your strengths and giving accurate information about your products, services, and business. Sugarcoating and exaggerating will only come back to haunt you.
10. Don’t Push Products No One Wants
Make sure you’re offering products and services people actually want. Trying to sell something nobody wants is an uphill battle, and it’s a recipe for failure. You could spend years pushing a product with little to show for it.
You may think you have the best product in the world, but if nobody wants it, you don’t have much of a business.
Running a business can be simple at its core: find out what people want, and provide it.
11. Don’t Rush Into Partnerships
I once heard it said that it’s easier to get into something than to get out of it. You may have the chance to partner with someone and think it’s your ticket to success. Partnering has real advantages, but you need to find the right partner. Take your time, and outline a detailed plan before committing.
It’s a bit like dating. You wouldn’t propose marriage after a week together. The whole point of dating is making sure you’re compatible before committing long-term. Partnerships work the same way. If you can, work out a trial run first. It usually goes better than jumping in blind.
12. Don’t Bet the Farm
In my opinion, you have to be “all in” when you’re running a business. You need to believe in what you’re doing and believe you can succeed. That doesn’t mean taking reckless risks. It doesn’t mean mortgaging your house and everything you own to bet the farm.
Every business carries risk. You can’t see everything coming, and you can’t plan for everything that might happen. A new competitor could enter the market and take a chunk of your customers. Supply chain disruptions and sudden tariff changes are a good example, too. A shipping delay or unexpected cost increase can hit a small business hard, even one that’s doing everything right otherwise.
It’s good to be dedicated and believe in what you’re building. Just keep in mind that some risks and events are beyond your control.
13. Don’t Forget Your Mission
Many people start a business with a clear mission. A business may shift direction over time, and that’s not always a bad thing. But sometimes a business drifts off track, loses touch with its core values, and the original mission gets lost along the way.
Make sure you stick to your core values and your mission. Keep your mission statement somewhere visible, so it acts as a reminder.
Sometimes a business genuinely needs a new mission. In that case, replace the original with the new one intentionally, rather than drifting into it.
14. Don’t Get Discouraged With Every Bump
Running a business isn’t easy. There are always surprises and unanticipated events.
Don’t get discouraged by every bump that comes up. Changes and problems are part of doing business. Once you accept that, you’ll get better at handling the unexpected and anticipating it before it happens.
One thing I often advise is to start a business you’re genuinely passionate about. When problems arise in a business you care about, you’ll have the motivation to work through them. When you start a business you’re not passionate about, problems tend to make you look for a way out instead of a solution.
15. Don’t Forget Your Strengths and Get Off Target
Many people start a business based around a particular strength, whether that’s a service, a popular product, or a brand they’ve built.
Stay focused on that strength as your business grows. Businesses sometimes drift away from their core products and services without meaning to.
Branching into new markets isn’t necessarily bad. But if you’re strong in one market and spread your efforts into markets where you’re not succeeding, you hurt your overall operation. You end up pulling resources away from the products and services you dominate. It pays to keep your focus on the areas where your business is strongest.
16. Don’t Spread Yourself Too Thin and Do Everything Yourself
Some businesses can run as a one-person operation, and others need help. Either way, make sure you don’t spread yourself too thin.
You can only do so much on your own. Trying to do everything yourself will keep you from reaching your full potential.
Your productivity suffers, your customer service suffers, and your personal life suffers too. Get help when you need it.
17. Don’t Spend Money Without Planning for Every Cent
Running out of cash is one of the most common reasons businesses don’t make it past their first few years. Borrowing money isn’t easy either, since financial institutions understand the risk of funding a new business. That makes financing harder to come by.
You never want to spend money on your business unless it’s necessary. At the same time, you don’t want to hold your business back by refusing to spend money where it’s actually needed.
You need a balance: spend where it counts, and plan for every cent you spend. The better you control your spending, the more success you can expect.
18. Don’t Save Money in the Wrong Places
You don’t want to save money in the wrong places. For example, say a machine keeps breaking down and causing downtime. If you avoid replacing it just to save money, you end up hurting your business more than helping it.
By not spending on a replacement, you’re cutting orders and damaging your reputation. It’s good to watch your spending, but you need to spend money in the right places to make money.
19. Don’t Take Key Positions for Granted
Make sure the people in key roles aren’t quietly hurting your business.
Say you run a retail business and have one employee working as a customer representative. That single person can do real damage in a matter of weeks without you even knowing it.
They’re the one in direct contact with your customers. If their service is poor, you can lose business fast without realizing why. Sales drop, and you’re left wondering what happened. Keep an eye on the people who hold these roles.
The same goes for a manager. If someone in that role is performing poorly, the effects show up throughout the operation.
Successful owners keep a close eye on key roles, the same way they keep a close eye on the books.
20. Don’t Get Too Comfortable
Things are going well, so it’s tempting to ease off. Money is flowing in, and everything is running smoothly. It’s great when things go well, but don’t let your business run on autopilot.
Keep an eye on things, and make sure they keep running smoothly. Watch your costs, your industry, and the marketplace.
Running a business is a roller coaster ride, with its share of ups and downs. Enjoy the ride, but keep in mind that things can change.
21. Don’t Forget To Stay Up to Date With Your Industry
You may already understand your industry well, and that’s a good thing. But even so, keep an eye on changes and updates as they happen.
Information moves fast today, and so does change in the business world. Make sure you’re keeping up with your industry rather than assuming it will stay the same.
Tracking can be as simple as setting up a Google alert, subscribing to industry journals and blogs, and following industry experts on social media. Staying current is part of staying competitive.
22. Don’t Forget the Customer Is in Charge
Many people start their own business to be in control. And while you do have a lot of say over how your business runs, keep in mind who’s really calling the shots.
Your customer is in charge. Customers are what keep your business open and operating. Without them, you don’t have a business.
When you put your customer first and remember that they’re the ones in charge, you treat them better and appreciate them more. That shows up in better customer service, stronger revenue, and a more stable business.
23. Don’t Run Your Business Without Feedback From the Most Important People
Don’t run your business without feedback. Acting on the right information can be one of the most valuable things you do.
Running a business means making a lot of assumptions. It doesn’t have to stay that way. Feedback tells you how to make things better and keep operations running smoothly.
Focus on getting feedback in two main areas: your customers and your employees.
Employees:
Even though you’re the one running the business, the people on the front lines usually have a better handle on what’s actually going on, since they’re doing the work every day. When you ask for their feedback and act on it, you can make the workplace better and more efficient. Who better to ask than the people doing the job daily?
Customers:
Your customers are the heart of your business. They’re the ones spending money and keeping your business alive.
Getting feedback from customers, and using it to improve your products, services, and operations, matters. There are many ways to collect it — see How to Create a Customer Satisfaction Survey That Works for ideas on getting the feedback you need.
Conclusion
Well, there you have it — what not to do when running your business. Work on a few of these tips at a time. Trying to put them all in place at once can be counterproductive. Pick the ones that stand out to you most, and get those in place. Once those are working, move on to the next ones as needed.
Good luck!
Acey Gaspard
Key Points and Facts About Running a Business Well
- Roughly one in five new businesses closes within its first year, and weak cash flow is consistently near the top of the list of why (LendingTree, 2025; SMBcompass, 2026).
- Planning ahead reduces errors, hasty decisions, and unnecessary risk.
- Hiring from within the company often beats hiring from outside, since internal talent already knows the business.
- Verbal agreements should always be backed up with a signed, documented version.
- Customers are the ultimate decision-makers in any business, and their feedback is one of the most valuable sources of information you have.
- External risks, like supply chain disruptions or tariff changes, can affect even a well-run business.
Action Steps for Avoiding Common Business Mistakes
Protect Your Cash Flow
- Review your books on a regular schedule, not just when something feels off.
- Track incoming revenue and outgoing expenses separately so you can spot gaps early.
- Build a cash cushion so a single late payment or slow month doesn’t put payroll at risk.
Plan Before You Act
- Write down your plan, even if it’s just one page.
- Research a decision before committing money or time to it.
- Build in a way to test big decisions, like a trial period for a new partnership.
Listen to Feedback
- Treat every customer complaint as information, not an inconvenience.
- Ask employees for feedback on what’s actually happening day to day.
- Track complaints over time so you can spot patterns instead of one-off issues.
Know When to Bring in Help
- Check your current team’s talent before hiring from outside.
- Outsource specialized work, like marketing or IT, when it’s outside your expertise.
- Document every agreement in writing, even ones that start with a handshake.
Checklist for Running a Healthier Business
- Review your finances.
- Check revenue and expenses on a set schedule.
- Watch for gaps between money earned and money received.
- Plan before you commit.
- Put your plan in writing, even briefly.
- Research before making a major decision.
- Protect what makes your business work.
- Identify the one thing that keeps customers coming back.
- Improve it deliberately instead of changing it without reason.
- Act on feedback.
- Collect feedback from both customers and employees.
- Use it to make specific, targeted changes.
- Watch your key roles.
- Keep an eye on employees and managers in customer-facing or high-impact positions.
- Address performance issues before they affect revenue.
- Prepare for external risk.
- Know that events like supply chain disruptions or tariff changes can affect your business.
- Build some flexibility into your planning for factors outside your control.
FAQ: Common Business Management Mistakes
What’s the most common reason small businesses fail?
- There’s no single cause, but weak cash flow shows up more than almost anything else in failure data, and roughly one in five new businesses doesn’t make it past year one (LendingTree, 2025; SMBcompass, 2026).
Should I always document agreements in writing, even with people I trust?
- Yes. A handshake deal can still be honest, but the details need to be documented so both sides are clear and protected if a disagreement comes up later.
Is it better to hire from within the company or bring in outside talent?
- Internal hires often have an advantage, since they already know the business and its culture. Outside talent can still be the right call when the skills genuinely aren’t available in-house.
How much should a small business plan for risks outside its control?
- Enough to build in some flexibility. You can’t predict every disruption, but building a cash cushion and staying informed about things like supply chain and tariff changes can soften the impact.
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