Ep 286: 3 Big Ways New Business Owners Waste Money (and How to Stop)

The Overspending Epidemic Among New Business Owners: Why It Happens and How to Stop It

When you're starting a new business, the excitement can be overwhelming. You want to do everything right, make the best impression, and set yourself up for success. Unfortunately, this enthusiasm often leads to one of the most common pitfalls I see among new entrepreneurs: overspending on things you simply don't need yet.

After guiding countless new business owners through their startup journey, I've identified three major areas where unnecessary spending is rampant, and understanding these patterns can save you thousands of dollars and countless headaches as you build your business.

The first major overspending trap is investing too much in website platforms and design too early. Many new business owners commit to yearly website plans to save a few hundred dollars, only to discover that the platform doesn't meet their evolving needs. The reality is that your first website platform is rarely your last. As your business grows and changes, your website needs will transform too. Start with monthly plans to test platforms thoroughly before committing. Similarly, while your website needs to look professional, investing in high-end custom design work in the earliest stages is often premature. Your brand identity will likely evolve significantly as you interact with real customers and refine your offerings. A clean, functional site that makes a good impression is sufficient to start generating revenue – you can invest in luxury design elements later when you have more clarity and cash flow.

The second area where new entrepreneurs hemorrhage money is purchasing advanced courses, templates, and programs that aren't applicable to early-stage businesses. The online business world is flooded with marketing promising that certain courses or tools are the missing piece to your success. But just like a professional photographer can take stunning images with a basic camera, you don't need every bell and whistle to succeed. Many new business owners purchase extensive course-creation programs before they have an audience to sell to, or advanced email marketing systems before they've sent a single newsletter. These tools are valuable – but only when your business has reached the appropriate stage of development. Instead, focus on simpler offerings like one-on-one coaching or basic workshops that require minimal investment but generate immediate feedback and revenue.

The third major area of wasteful spending is throwing money at advertising without a clear strategy. Many new business owners boost posts or run Facebook ads without understanding the fundamentals of digital advertising. They set daily budgets that seem small ($20/day) but quickly accumulate while generating few or no conversions. Digital advertising can work wonderfully, but it requires expertise and a proven funnel to be effective. In the early stages of your business, you're often better served by focusing on organic content creation through podcasting, blogging, or strategic social media posting – channels where you can build authentic connections without the pressure of paid advertising costs.

Understanding why we overspend is crucial to breaking the pattern. Often, it stems from a lack of confidence in what we're selling. We hope that buying more tools or courses will somehow make us feel more legitimate or prepared. But true confidence comes from working with real people, getting feedback, and refining your offerings – not from purchasing more business accessories. Others overspend due to fear of "doing it wrong," reaching for templates and systems that promise foolproof success. The reality is that your business is as unique as you are, and cookie-cutter solutions rarely fit perfectly.

Some entrepreneurs use purchases as a form of avoidance – it's easier to buy something than to put yourself out there authentically. And finally, many are searching for a "get rich quick" solution that simply doesn't exist. Building a business takes time and consistent effort; there are very few overnight successes.

The path forward is clear: before any purchase, ask yourself if it's truly necessary for your current stage of business. Will it save you time? Is it aligned with your direction? Can you defend the purchase if questioned? Remember, there's plenty of time for spending later – this early stage is about getting your offerings into the market, collecting feedback, and refining your approach with minimal overhead. Your future success depends not on how much you spend today, but on how strategically you allocate your limited resources.

👉GET ALL MY FREE BUSINESS RESOURCES & PRINTABLES! 👈
👉JOIN THE FREE  FB GROUP HERE!
___________________________________________________________________

WORK WITH ME 👇
1. Discover your BEST BUSINESS IDEA HERE!
2. Create your BUSINESS PLAN HERE!
3. Get your Online Business Started : Just Getting Started Bootcamp!

4. Get your business GROWING consistently HERE!
5. Launch your podcast: GET THE PASSION TO PODCAST COURSE!
6. ➡️BOOK 1x1 Coaching for your business and/or podcast HERE⬅️


🥳 JOIN ME ON MY NEW YOUTUBE CHANNEL HERE, INSTAGRAM, & FACEBOOK HERE