5 Common Financial Mistakes Brisbane Startups Make (and How to Avoid Them)

Here in Brisbane, the startup scene is buzzing with energy and innovation. But even the most brilliant business idea can be derailed by simple financial oversights. With over 30 years of experience mentoring local businesses, we see the same preventable mistakes appear time and again. Each one chips away at cash reserves, staff confidence, and your capacity to grow.

This guide breaks down the five finance traps we coach founders through every week and shares the practical actions we recommend in our Show Me the Money workshop and 1:1 advisory programs.

1. Confusing Profit with Cash Flow

This is the number one killer of new businesses. You can have a profitable business on paper (your invoices show you're earning more than you're spending) but still run out of money. Why? Because profit is theoretical until the cash is actually in your bank account. Long payment terms from clients (e.g., 60 or 90 days) can create a cash flow gap that leaves you unable to pay your own bills.

How to Avoid It: Create a simple cash flow forecast. Our "Show Me the Money" workshop focuses heavily on this. It's a spreadsheet that tracks money in and money out, week by week. It forces you to think about when you'll actually be paid, not just when you send an invoice.

2. Not Separating Business and Personal Finances

When you're starting out, it's tempting to pay for a business expense with a personal card. This quickly becomes a nightmare for bookkeeping and makes it impossible to see if your business is actually financially viable. It also creates major headaches for your accountant at tax time.

How to Avoid It: From day one, open a separate business bank account and get a business debit or credit card. Treat the business as its own entity. Pay yourself a regular, modest wage from the business account to your personal account instead of dipping in and out randomly.

3. Underpricing Your Services or Products

Many new entrepreneurs lack the confidence to charge what they're worth. They price their services based on what they *think* the market will bear, rather than what they need to earn to be sustainable and profitable. This is a race to the bottom that you can't win.

How to Avoid It: Do the maths. Calculate your total costs (including your own salary), add a realistic profit margin (e.g., 20-30%), and then determine your pricing. Understand your value proposition - if you provide a superior service, you can charge a premium price.

4. Neglecting to Forecast and Budget

Many business owners fly blind, reacting to financial situations as they happen rather than planning for them. Without a budget or a forecast, you have no way of knowing if you're on track, if you can afford that new hire, or how a quiet month might impact your cash reserves.

How to Avoid It: Build a simple annual budget. Estimate your sales month by month and your fixed and variable costs. This doesn't need to be perfect, but it creates a benchmark. Review your actual performance against your budget every month to stay in control.

5. Ignoring Key Financial Metrics (and Delaying Advice)

You don't need to be an accountant, but you do need to understand a few key numbers in your business. Ignoring metrics like Gross Profit Margin, Net Profit Margin, Customer Acquisition Cost, and cash runway means you're making decisions based on gut feel rather than data. Many founders also wait too long to ask for help, which compounds the issue.

How to Avoid It: Create a simple scorecard with 3-5 metrics that matter most. Track them weekly or monthly, share them with your leadership team, and book a clarity session with a JSB advisor if you need support selecting or interpreting the numbers.

Avoiding these common pitfalls can dramatically increase your chances of success. Financial literacy is not about complex accounting; it is about building simple, consistent habits that give you clarity and control.