Starting a Business? Avoid These Costly Mistakes

startupStarting a  business is exciting, but it can also be stressful. As you look forward to becoming your own boss, you also have to think about how to handle startup costs and stay afloat for the first year. It takes time to build a customer base, so get used to being frugal.

Following are some tips that should help you make it over the hurdles many new businesses face.

Pick the right location

When choosing a location for your business, you need to consider more than your personal preferences. For example, maybe you’d like to keep your business close to your suburban home, but if you’re opening a coffee shop, you’d be better off choosing a downtown location with a lot of foot traffic.

To help hone-in on some potential locations, think of your ideal customer and where that person spends time. Also, decide whether being adjacent to other businesses could help or hurt you. Many restaurants try to occupy spaces close to big-box retailers, so they can attract hungry shoppers. But if you’re too close to a competitor, you may have a hard time building a clientele.

Are you selling products that appeal to new moms? If so, you need to have ample parking nearby. Busy moms will often have children with them when they run errands, and they’ll be less inclined to stop at a store if parking is a hassle.

As a new business owner, it makes more sense to rent your space than buy it, because your property manager will generally be responsible for maintenance. But make sure the lease clearly defines who is responsible for repairs and what changes you can make to the premises — you wouldn’t want to get stuck with a space that you can’t customize to suit your needs.

Lease equipment

The leasing option applies not only to your location, but also to your equipment. Don’t buy an expensive fax machine or postage meter when you can lease and have the benefits of upgrading to a newer model at some point in the future.

It does make sense to buy a laptop or computer, if you’re going to use it for business and personal use. But you could save a lot of money buying a refurbished machine, instead of a new one. University or government surplus stores are good places to look for refurbished equipment.

Don’t overstock

Because your business is just getting started, you can’t accurately project how much inventory you’ll need. While it’s OK to stock up on items necessary to run your business, like mailing cartons, light bulbs and cleaning supplies, don’t overstock products. In business, it’s better to run out of something and have to reorder than to end up with a lot of unsold inventory.

Have a safety net

Don’t make the mistake of investing every penny into your new business. You should have money in reserve, just in case it takes longer than you anticipate to generate a steady customer base. When you have savings to fall back on and spend wisely, you should be able to make it through the fledgling stages of owning a business.


Felicia Savage is a graphic designer and social media expert living in Indianapolis, IN. When she isn’t tweeting, drawing or exploring, Felicia enjoys running, swimming among other outdoor activities.

Share small business news, blogs and social media tips with Project Eve’s community of small business owners and entrepreneurs today. Our contributors come from a wide range of backgrounds; so whether you are a small business owner, social media strategist, financial adviser, serial entrepreneur, or write an amateur blog we urge you to contribute a blog to our 500,000+ community today. For more information, please refer to our Content Submissions Guidelines.

Add a Blog


  1. 669373 4996Aw, it was a actually great post. In concept I should put in writing related to this moreover – spending time and actual effort to manufacture a outstanding article but exactly what do I say I procrastinate alot and no indicates locate a strategy to go carried out. 20728

  2. 685862 611586Wow, awesome weblog structure! How long have you been running a weblog for? you produced blogging look straightforward. The total appear of your internet site is great, let alone the content material! 74004

  3. Greetings from Idaho! I’m bored to tears at work so I decided
    to browse your site on my iphone during lunch break.
    I really like the information you provide here and can’t wait
    to take a look when I get home. I’m shocked at how quick your
    blog loaded on my phone .. I’m not even using WIFI, just
    3G .. Anyhow, superb blog!

  4. Heya! I just wanted to ask if you ever have any trouble with
    hackers? My last blog (wordpress) was hacked and I ended up losing a
    few months of hard work due to no back up. Do you have
    any methods to stop hackers?

  5. Hey I am so thrilled I found your blog page, I really found you by accident, while
    I was browsing on Askjeeve for something else, Anyhow I am here now and
    would just like to say kudos for a fantastic post and a all round exciting blog (I
    also love the theme/design), I don’t have time to look over
    it all at the moment but I have book-marked it and
    also added your RSS feeds, so when I have time I will
    be back to read much more, Please do keep up the excellent job.

  6. 617989 570183An interesting discussion is worth comment. I feel that you need to write a lot more on this matter, it may possibly not be a taboo topic but typically individuals are not enough to speak on such topics. To the next. Cheers 336390

  7. 858514 859789This web site is really a walk-through for all of the details you wanted about it and didnt know who to question. Glimpse here, and youll surely discover it. 524919

  8. Magnificent goods from you, man. I have be aware your stuff prior to and you’re simply extremely magnificent. I actually like what you’ve bought here, certainly like what you are stating and the best way through which you say it. You’re making it entertaining and you still care for to keep it sensible. I can not wait to read far more from you. This is really a tremendous web site.


Please enter your comment!
Please enter your name here