Horizons Homes & Hustle

Starting a business is like stepping into a wild frontier—exciting, unpredictable, and full of potential pitfalls. Whether you’re launching a tech startup, a coffee shop, or laying the groundwork for a real estate venture, the early days are full of rookie errors. Here are the top five mistakes new business owners make, based on hard-earned lessons from entrepreneurs who’ve been there and tips to sidestep them.

1. Skipping the Plan
   Many newbies dive in headfirst without a solid business plan. Passion is great, but without a roadmap, you’re just guessing. 70% of businesses with a written plan survive past five years, compared to 40% without one.
   Fix It: Draft a simple plan—goals, target market, budget, and a timeline. It doesn’t need to be a 50-page novel; even a one-pager keeps you focused. For real estate pros, this means mapping out your niche (luxury homes? rentals?) before chasing leads.
2. Underestimating Cash Flow
   Cash is king, yet new owners often think revenue equals survival. Expenses pile up fast—marketing, licenses, unexpected repairs—and if you’re not ready, you’re sunk. A 2024 study from CB Insights pegged cash flow issues as the reason 38% of startups fail.
   Fix It: Build a six-month cash buffer. Overestimate costs by 20% and track every dime. In real estate, this could mean saving for slow commission months or surprise property fixes.
3. Ignoring the Customer
   Too many owners get obsessed with their vision and forget who’s paying the bills. You might love your quirky branding, but if clients don’t get it, you’re toast.
   Fix It: Talk to your audience early—surveys, chats, whatever works. If you’re eyeing a real estate brokerage, ask locals what they want: faster closings? better market updates? Build around that.
4. Trying to Do It All
   New owners wear every hat—CEO, marketer, janitor. It’s noble but exhausting, and quality slips. Burnout’s real; 42% of small business owners reported it in a 2025 Gallup poll.
   Fix It: Delegate ASAP. Hire a part-time assistant or outsource bookkeeping. For a future brokerage, lean on a transaction coordinator so you’re not drowning in paperwork when listings pile up.
5. Neglecting Legal Stuff
   Skipping permits, licenses, or proper contracts can haunt you later. A buddy of mine launched a side hustle. He got hit with a $2,000 fine for missing a local permit. Lesson learned. In regulated fields like real estate, this is doubly true.
   Fix It: Research your industry’s rules upfront. In New Mexico, for example, real estate brokers need to follow advertising regulations or face steep fines. They need to include brokerage info in their ads. Don’t be afraid to ask the professionals. Even if talking to a lawyer is expensive it could be money well spent! My father always told me you are only as good as the people you surround yourself with. I have always made certain that I had a good CPA on hand as well as a lawyer on retainer.

The Takeaway
Mistakes aren’t failures—they’re tuition for success. Dodge these five, and you’re already ahead of the pack. What’s your next move? Drop a comment—I’d love to hear your story.

By Michael Taylor, Permian Real Estate