Starting a business is exciting, but also risky. From naming the business to launching the first offer, early decisions shape whether the business survives.

According to Tereza Murray (pictured above), business growth consultant and founder of Tereza Murray Franchising (TMPlus), the most costly mistakes are usually made in those first few steps without the right advice.

“Founders tend to focus on the idea, the pitch and getting to market, but it’s the strategic decisions around structure, planning and brand protection that make or break a business,” says Murray.

“At TMPlus, we work with clients at every stage, from start-ups needing clarity, to established businesses tackling specific challenges, to founders ready to scale. These patterns show up across the board.”

With up to 90% of start-ups failing within five years, avoiding these common pitfalls isn’t just smart, it’s essential, Murray adds.

Mistake one: picking a name without checking if it’s protectable

One of the most overlooked steps is trademarking. Founders often choose a name, buy a domain, register the business and start trading, without checking whether the name is legally protectable.

“Choosing a name doesn’t mean you own it,” says Murray. “A business registration doesn’t protect your brand. Only a registered trademark gives you exclusive legal rights. I’ve seen founders lose everything they’ve built because someone else registered a similar name first.”

Some names can’t be trademarked at all, she adds. They may be too generic, too descriptive, or too close to existing marks, even if no one else is visibly using them.

Founders often don’t discover this until they’re ready to scale, at which point rebranding can be costly and damaging.

The consequences? Rebranding costs, legal issues, lost SEO rankings and customer confusion. The solution? Start with an IPONZ search and seek expert advice before launch. If you plan to grow, protecting your brand is not optional, it’s essential, says Murray.

Mistake two: building without validating

Many founders jump into launching without checking if people actually want what they’re offering. It’s easy to assume others will like your idea because you do, but without feedback from real customers, you risk investing in the wrong thing, Murray explains.

“This is one of the most expensive mistakes a founder can make. We’ve seen businesses invest tens of thousands into websites, packaging, or stock, only to find their offer doesn’t land.”

One of the simplest ways to validate is by studying businesses already serving your target market. What are they offering? How has it evolved? Most have refined their offering through years of trial and error. Check their online reviews, recurring complaints – gaps in service could reveal your opportunity to stand out, she adds.

Validation doesn’t require a polished launch. You can test demand with a trial service, a landing page, or a small product run. These small steps shape something that meets a real need, and give you a point of difference.

According to Murray, you don’t need a big budget, just curiosity, observation and the willingness to adapt before going all in.

Mistake three: underestimating the cost of scaling

Poor financial planning is a top reason businesses stall. Founders often budget for launch but underestimate what’s needed to keep things going for the first six to 12 months.

“Startups don’t fail because they had no product or demand,” says Murray. “They fail because they run out of cash. Whether self-funded or raising capital, you need a cash flow plan that covers operations, marketing, wages and the unexpected.”

Many also overspend on non-essentials, she adds. Flashy fit-outs, a new ute, or premium packaging might feel exciting, but launching lean is usually the smarter move. Prioritise what actually drives revenue.

Work with an accountant or business advisor to build a realistic plan, update forecasts monthly and allow for contingencies. Financial health isn’t a back-office task, it’s the foundation of growth.

Mistake four: skipping the structure stage

In the early rush, founders often overlook setting up the right structure, roles and agreements, especially when there are co-founders involved.

“There’s this myth that you can sort it all out later,” says Murray. “But I’ve seen friends, family members, even married couples fall out over equity or decision-making when things get serious.”

Without proper agreements in place, disputes can stall or even end the business. It’s also hard to raise funding or sell a business later if the structure is unclear.

Even simple agreements, on ownership, roles and exit rights, can prevent big problems later, she adds. Founders should treat governance with the same seriousness as branding. It brings clarity, protects relationships and sets the business up for future success.

Mistake five: trying to do it all alone

Many founders are proud of being self-reliant, but this can hold the business back. It’s unrealistic to master every aspect of a growing business, from compliance to marketing to operations.

“There’s a difference between bootstrapping and bottlenecking,” says Murray. “Founders can become the single point of failure. You don’t need a big team, but you do need the right support.”

Support might look like outsourcing bookkeeping, engaging a business advisor, or using software to streamline admin. The goal is to stay focused on the work that drives growth and get help for the rest.

Trying to do everything alone often leads to burnout and missed opportunities. Getting expert input early, even briefly, is usually far cheaper than cleaning up bigger problems later, she explains.

Start smart, scale strong

Every business journey carries risk, but many challenges are preventable, says Murray. By protecting your brand, validating your idea, planning your finances, setting clear structures and getting support, you give your venture the strongest possible foundation.

“It’s not about being perfect,” she adds. “It’s about setting yourself up to learn, adapt and grow, without being blindsided by things that could’ve been avoided.”