This morning, I had the absolute honour of speaking at the Bayview Golf Club about one of my favourite topics: the common traps small business owners fall into — and how to avoid them. Whether you’re just starting out or have been in business for a few years and are feeling burnt out, these lessons are golden.
These insights aren’t just from my own journey running a growing firm — they’re pulled from hundreds of conversations I’ve had with clients over the years, watching what works and what doesn’t when you’re trying to build a business that’s not just profitable, but actually sustainable and fulfilling.
Let’s dive in.
1. Have a Clear Plan – And Know Who You’re Doing This For
When people jump into business without a plan, they often make the mistake of trying to appeal to everyone. But here’s the thing: if you try to serve everyone, you end up serving no one very well.
Your business plan doesn’t have to be 40 pages long, but it does need to answer this:
Who is your ideal client? And how are you going to reach them?
Because if you don’t define this, the market will decide for you — and you’ll often end up attracting the wrong people. The “wrong” clients are the ones who want a discount, push your boundaries, question your value, and drain your time and energy. They are also the ones most likely to leave a bad review when things don’t go exactly their way.
These bargain-hunting clients often don’t respect your time or your skills. They refer their like-minded friends, and before you know it, you’ve built a business around the kind of work and people you never actually wanted.
2. Undercharging Will Cost You More Than You Think
One of the most common things I see is new business owners undercharging. I get it — we all start somewhere, and when you’re just beginning, you’re eager to get runs on the board.
But here’s the truth: low prices attract low-value clients, and those clients cost you more than just money. They cost you sleep, time, energy, and they often crowd out your ability to serve the high-value, respectful clients who will pay your proper rate.
Worse still, undercharging gives the impression that your service isn’t worth more. And if you think you can just raise your prices later, be prepared — it’s much harder to shift your market once you’re known as the “cheap” option.
The most successful business owners I know are the ones who value their own time — and aren’t afraid to set boundaries around it.
3. Don’t Focus on Revenue — Focus on Profitability
Turnover means nothing if you’re exhausted and broke.
I’ve seen businesses that brag about their seven-figure revenue but are secretly stressed out and operating on razor-thin margins. That’s not freedom. That’s a trap.
Also known as “Survival Trap.” This happens when business owners believe the answer to their problems is always “just one more sale” — that if they could just increase their revenue, they’d be okay. But if your pricing is off or your expenses are bloated, more sales will only make the problem worse. You’ll be stretched thinner and thinner, trying to please everyone – burning out in the process and STILL not becoming profitable. Really though, you should aim to be profitable year-round – not just in your high season, this will be far easier for your lifestyle and more sustainable.
A profitable business doesn’t necessarily need to be big. It just needs to be smart. You’d be amazed at how much better life feels when you’re running a simple, high-margin business for a handful of amazing clients — instead of trying to juggle dozens of low-paying ones and constantly chasing your tail.
4. Control Your Client Base Like a Pro
It surprises me how many people run a business without really understanding who their clients are. I don’t mean names and email addresses — I mean:
- What they’ve bought
- How often they buy
- What services are profitable
- Which clients light you up (and which drain you)
I recommend tagging your clients based on the services they use, when they use them, whether they’re top-tier or borderline, and so on. Once you’ve done this, you’ll start to notice patterns — and you’ll have the power to proactively manage your business instead of always reacting.
This is where tools like TaxDome or CRMs really come into their own. A tight database lets you make targeted decisions, spot red flags, and know exactly where to direct your time and energy.
5. Raise Your Fees (Even If It’s Scary)
Yes, even if you lose a few clients.
In fact — especially if you lose a few clients.
When you raise your fees, something powerful happens. Non-ideal clients naturally fall away, and you create space for better ones to enter. Often, you end up earning more from fewer people — with a much more manageable workload and fewer dramas.
And let’s be honest — those who leave over a $20 fee increase were never your people. Let them go.
6. Let Go of Unprofitable Services
If you’ve got a product or service line that’s no longer serving you (financially or emotionally), let it go. Just because you can do something, doesn’t mean you should.
Your time is a finite resource. Sometimes, the only way forward is to free up your time first. And you can’t do that if you’re clinging to outdated offerings that dilute your brand and stretch you thin.
7. Set Up a Proper Money System
This is one of the biggest game-changers I teach my clients:
Pay yourself first and have multiple business bank accounts.
Here’s how I recommend setting it up:
- A main account for income
- One for GST (non-negotiable)
- One for your own wage or drawings
- One for PAYG/BAS obligations
- One for monthly bills
- One for tax savings
- One for business growth and asset purchases
- One for profit (even just 1% of sales to start)
Every week, do your allocations. Pay yourself first. Put aside your obligations. And let your “profits” account grow quietly in the background.
This is how you start to gain clarity over your cash flow without needing to read complicated financial reports. Just by logging into your online banking, you’ll know what’s yours, what’s owed, and what’s left to spend.
8. Separate Your Personal and Business Finances (Please!)
Mixing your personal and business money is a recipe for chaos — and tax headaches. The most common trap? Using an AMEX or Qantas card to rack up points, and running both personal and business expenses through it.
It seems harmless until you realise:
- Your books are messy
- You lose track of real cash flow
- You risk Division 7A issues if you’re a company
It’s far better to have completely separate banking logins. Keep your business finances in one place, personal in another. Transfer your wage / drawings at regular intervals, and aim for no crossover. It keeps your system clean, your accountant happy, and your stress levels low.
Final Thought: Bad Clients Are Worse Than No Clients
If you’re reading this and thinking, “That’s me – I’m working around the clock, I’m not making money, and I feel like giving up” — you’re not alone.
I hear this all the time. And it’s not because you’re not working hard enough or smart enough — it’s because you’re stuck in the survival trap. You’re serving the wrong people, underpricing, and have no system to give yourself the breathing space you need.
But the good news? You can change that.
Start with these small but mighty steps. Define your audience. Raise your fees. Track your clients properly. Pay yourself first. Separate your money. And above all, know that you’re allowed to run your business in a way that supports your life — not the other way around.
