Starting a business is exciting. But here’s the truth: many don’t make it past the first 12 months. According to ASIC, thousands of Australian businesses are deregistered each year. This isn’t meant to scare you—it’s meant to prepare you.
Whether you’re side hustling, working with minimal savings, or finally acting on your long-postponed idea, understanding the common causes of failure could be your secret edge.
One of the top reasons startups don’t make it? Poor planning. Many new business owners skip writing even a basic business plan. A simple 1-page strategy is better than none.
Without direction, it’s easy to lose focus, miss key steps like setting up an ABN or building an online presence, and overspend on things that don’t generate returns.
What to do instead:
A business can be profitable and still run out of money. Many founders underestimate how long it takes to start earning and overestimate early demand.
Rent, marketing, subscriptions—they all stack up fast. Without tight control, you’re left cash-poor and stressed.
Tip:
Track expenses weekly. Use tools like Xero or Wave to stay ahead. Don’t wait till tax time.
Just because you love an idea doesn’t mean the market will. Many founders build solutions before validating the problem.
Better approach:
Read: How to Test a Business Idea Fast
A business can be profitable and still run out of money. Many founders underestimate how long it takes to start earning and overestimate early demand.
Rent, marketing, subscriptions—they all stack up fast. Without tight control, you’re left cash-poor and stressed.
Tip:
Track expenses weekly. Use tools like Xero or Wave to stay ahead. Don’t wait till tax time.
You don’t need a big team. But doing everything solo can be a trap. It slows you down and burns you out.
Find a support circle—whether it’s a mentor, an online founder group, or a weekly accountability buddy.
Your logo and website don’t have to be fancy. But they must be clear and professional. First impressions count—especially online.
Quick checklist:
Failure isn’t inevitable. It’s avoidable. By starting lean, planning smart, and building what people actually want—you set yourself up to survive that tricky first year.
Next Step? Let’s Get You Set Up Right
If you’re just getting started, we can help with everything from ABN registration and logo design to websites and marketing basics.
Join our free waitlist at Start My Biz to get first access when we launch soon.
Let’s build your business right from day one.
