Starting a business is wild. One minute you’re Googling “what is a sole trader,” the next you’re knee-deep in invoices, receipts and an accidental VAT registration.
Somewhere in the chaos, most people fall into two camps: doing way too much themselves or handing over everything to someone they barely know (usually their cousin who’s “great with Excel”).
This post breaks down five of the most common beginner mistakes, how to fix them, and when to handle things yourself or bring in help.
⚠️ Mistake 1: Doing Everything Yourself to “Save Money”
You built your website, designed your logo, filed your own taxes and maybe even attempted to build an app before breakfast.
It’s impressive. But also risky.
Why it backfires
Time is money. Beginner mistakes cost way more to fix than hiring someone to get it right the first time.
âś… Fix it
Be strategic with your DIY energy.
Tracking your income and expenses? Yes.
Filing your first self-assessment? Maybe.
Filing your limited company accounts with no clue what they mean? Definitely not.
đź› DIY this
Google Sheets, Canva, basic HMRC registration
đź’Ľ Outsource this
Limited company filings, tax returns above ÂŁ10k, anything involving code and developer tears
⚠️ Mistake 2: Waiting Too Long to Get Help
Some people wait until that first scary HMRC letter lands before they realise it’s real.
Others try to backdate 12 months of bookkeeping after their first paying client. It’s not fun. Don’t ask how I know.
âś… Fix it
Bring in support when you start seeing:
- Consistent income
- More admin than actual work
- Your dreams turning into tax nightmares
đź› DIY this
Log your monthly expenses, categorise your income, get used to basic numbers
đź’Ľ Outsource this
Year-end accounts, VAT registration, payroll
⚠️ Mistake 3: Not Knowing What You Can Claim
Home office expenses, internet bills, software subscriptions? Absolutely.
That family holiday labelled “team retreat”? Not so much.
The coffee you bought while scrolling Instagram at Costa? Debatable.
âś… Fix it
Understand what HMRC actually counts as “allowable expenses.” When in doubt, record it anyway and let your accountant be the voice of reason.
đź› DIY this
Keep your receipts, log mileage, use an app like QuickBooks or FreeAgent
đź’Ľ Outsource this
Claim reviews, grey-area deductions, tax planning
⚠️ Mistake 4: Hiring Too Soon
It’s tempting to build a team fast. A VA, a brand designer, a fancy accountant. Even before you’ve nailed down what your business actually does.
âś… Fix it
Outsource based on actual need, not because you think that’s what real businesses do.
You hire to save time, fix mistakes or speed up results. Not just for show.
đź› DIY this
Figure out your own process first. Know your systems.
đź’Ľ Outsource this
Repetitive admin, legal or tax tasks, anything that feels like guesswork
⚠️ Mistake 5: Not Understanding the Basics Before Outsourcing
If you don’t know how your taxes work, how would you even know if your accountant made a mistake?
If you’ve never looked at your numbers, you’ll say yes to every shiny marketing expert who DMs you promising leads by Monday.
âś… Fix it
You don’t need to be a tax nerd. But you do need to know enough to ask smart questions.
đź› DIY this
Watch a few YouTube videos. Read the HMRC intro guides. Just enough to stay in control.
đź’Ľ Outsource this
Everything complex, but only once you understand the basics yourself
âś… Final Thoughts
You don’t have to do it all. But you do need to understand what’s being done.
Learn just enough to stay in control. Then build the right kind of help around you so you can focus on making money, not constantly second-guessing your spreadsheets.
Want to go deeper?
Check out my full guide
👉 Business and Tax for Beginners: Practical Tips for Side Hustlers and Small Business Owners (coming soon)
Image Credit: Guilei2016 via Pixabay