Five common mistakes new businesses make and how to avoid them

Starting a business in Australia is a big step. It's exciting, but it can also feel like you're doing ten jobs at once. In those early days, when you're trying to get your product or service off the ground, it's easy to make mistakes that can slow you down or cost you money. Here are five common missteps that new business owners often make—and what you can do instead.

1. Starting without a plan

A lot of people skip the business plan, thinking they'll figure things out as they go. And while you don't need a thick report, having some sort of plan matters. Without one, you'll struggle to define who your customers are, how you'll earn money, or even what you're trying to achieve.

In Australia, having a business plan can also make a real difference when applying for grants, loans, or even just opening a business account. Lenders and government programs often ask for a basic outline of your operations.

The good news? A simple one-pager is enough to start with. Tools like the Lean Canvas can help you outline your goals, pricing strategy, customer segments, and how you'll deliver value. You can also use the free business plan templates available on business.gov.au.

If you're starting from scratch, a free word processor like Zoho Writer can help you build and share your plan without needing expensive software.

2. Not keeping an eye on cash flow

A lot of new business owners focus on making sales, but forget to track how much money is actually staying in the bank. It's not just about what you earn, but what you keep after covering all your costs.

The problem? Bills don't wait. You might have quiet months, clients who pay late, or regular costs like software, rent, or supplies. On top of that, you've got to stay on top of taxes. In Australia, you'll need to put aside money for GST, PAYG, and insurance. If you don't plan ahead, you could come up short when tax time hits.

Here's what helps:

• Set up a separate bank account just for taxes and super. Move a portion of each payment there as soon as you get paid.
• Use a simple tool like Zoho Books to keep track of income and expenses.
• Invoice as soon as work is done, and follow up quickly if someone delays.
• If you're registered for GST or are close to the $75,000 annual threshold, make sure you include GST in your pricing from day one.

If you want to know more about cash flow, check out this blog on how to improve cash flow in your growing business.

3. Trying to do everything yourself

Running a business solo often means wearing many hats. But doing everything yourself—from marketing, bookkeeping, customer service, tech support and everything else—can lead to burnout.

There's nothing wrong with asking for help. Even hiring someone casually for a few hours a week can take a load off. If you need help managing your sales and customer info, Bigin by Zoho CRM is a simple tool made for small businesses. It's easy to use and doesn't over-complicate things.

You can also connect with other small business owners for support. Local business groups and online communities like the Australian Small Business Network on Facebook are great places to ask questions, get referrals, or just share what's working.

And if you're feeling stuck, support is still out there. Organisations like Realise Business offer mentoring, business advice, and education to new Aussie businesses. They're a not-for-profit backed by government funding—and they use Zoho themselves to run their operations. Sometimes, just having someone to chat with can make all the difference.

4. Having no online presence

Even if you run a local café or trade business or sell at markets, people will still look you up online. If they find nothing—or outdated info—they'll move on to someone else. In fact, over 90% of Aussie shoppers research online before making a purchase.

At a minimum, set up a Google Business Profile with your contact details, services, and opening hours. Add photos and keep everything current. That alone can make a big difference to how often your business shows up in local search results. If you'd like to learn more, read our blog—Google Business Profile: Connecting businesses and customers—to see how it works and why it matters.

Next, secure your .com.au domain and create a simple website. Free website builders like Zoho Sites help you create a landing page in minutes with no coding needed. Your website should include:

• What you do
• Where you're located (even a P.O. box works)
• Your contact details
• Pricing (be clear and transparent because customers appreciate it)
• Customer reviews or testimonials

Beyond that, think about how your customers like to communicate; some might check your website, while others prefer messaging you on Facebook or replying to an email. That's where omnichannel presence matters. Being available across platforms—email, social media, live chat, and phone—makes it easier for people to reach you, builds trust, and helps you respond faster. Tools like Zoho SalesIQ or Zoho Desk can help manage all your channels in one place.

Transparency builds trust. When people can see your pricing up front, they're more likely to reach out or buy.

And while you're setting up online, think about your long-term protection too. Register your business name and consider trademarking it through IP Australia. You can also secure your data and logins using tools like Zoho Vault, especially if you're handling customer info.
 

5. Skipping customer feedback

You may have a great idea, but your early customers will tell you what's actually working and what's not. Ignoring their feedback can lead you to build a business that misses the mark.

Word of mouth is always powerful, especially in close-knit communities. If customers feel heard and valued, they're more likely to refer others or come back.

Make it easy for people to share their thoughts. After each job or purchase, ask them what you could've done better. Use a simple tool like Zoho Survey to collect feedback.

Always reply to reviews, especially the negative ones. A thoughtful response shows you care and are willing to improve. If you're launching a new product or service, do a soft launch or pilot first. Testing with a small group gives you the chance to tweak before going big.

Final thoughts

No one gets everything right in the beginning. But by avoiding these common pitfalls and using the free tools and support available, you'll give your business a stronger start. Plan smart, manage your money, build your online presence, and stay close to your customers.