The top 5 mistakes to avoid when starting a business
Starting a business can be one of the most exciting—and daunting—ventures you’ll ever take on. With the right strategy, planning, and support, it can also be incredibly rewarding. At McMillans, we’ve helped hundreds of Gippsland-based entrepreneurs take their ideas from concept to cash flow. And we’ve seen the same mistakes pop up time and time again.
Avoid these five common traps to give your business the best shot at success.
1. Not having a business structure in place
Choosing the wrong business structure can lead to major issues down the track—think unnecessary tax, personal liability, or problems bringing on investors or partners.
Sole trader, partnership, company, trust—each has pros and cons in terms of control, compliance, asset protection, and tax. We’ll help you select the right structure from day one and make sure it evolves with your business.
Tip: It’s easier to set up the right structure than to fix the wrong one later.
2. Mixing business and personal finances
It might seem easier to just run everything from one bank account—but this is a fast track to financial confusion, missed tax deductions, and serious compliance risks.
A key to good business hygiene is keeping your finances separate, clear, and trackable. This also makes it easier to measure profitability and apply for finance later on.
Tip: Set up dedicated business accounts, and use accounting software like Xero from the start.
3. Failing to plan for tax
Many start-ups find themselves in trouble because they treat tax as something to “worry about later.” But if you’re not setting aside money for GST, PAYG withholding, or income tax, a surprise bill from the ATO can cripple your cash flow.
Good tax planning means:
Registering for GST (if applicable)
Understanding your quarterly BAS requirements
Budgeting for tax obligations throughout the year
Accessing small business tax concessions
Tip: Book a tax planning session early—we’ll help you set up a simple, sustainable strategy.
4. Underestimating startup costs
Most new businesses cost more to start than their owners expect. From stock and fit-out to insurance, tech, marketing, and compliance fees—it adds up fast.
We often see business owners pour all their savings into setup, leaving no buffer for operating costs. That’s a big risk if things take longer to get off the ground.
Tip: Prepare a cash flow forecast and business plan with real numbers. We can help you map out costs and identify funding options.
5. Going it alone
Starting a business can feel like you need to do everything yourself—but the most successful founders know when to call in help. Whether it’s advice on accounting, tax, software, or growth strategy, having the right support makes all the difference.
McMillans offers tailored start-up support including:
Tip: Build a trusted advisory team early—accountant, lawyer, marketing support—and save yourself hours (and headaches) later.