Top 5 Mistakes Local Startups Make – and How to Avoid Them

Starting a business is one of the most exciting things you can do — but it also comes with risks, especially in those crucial early months. As a municipal small business advisor here in St. Thomas, Ontario, I’ve worked with many local entrepreneurs, and certain challenges come up again and again.
Whether you're selling coffee downtown, running an e-commerce store, or launching a mobile service, avoiding these five common mistakes can set you up for long-term success.

1. Skipping the Business PlanMany new entrepreneurs jump straight into selling without building a solid business plan. While enthusiasm is great, a business plan helps you clearly define your goals, customer base, competition, pricing, and cash flow. Without one, it’s easy to lose direction or miss critical expenses.
How to avoid it:
Connect with the St. Thomas & Elgin Small Business Enterprise Centre (SBEC) — we offer free templates, planning tools, and one-on-one support to help you create a plan that works for your business.
 
2. Underestimating Start-Up CostsIt’s common for local startups to underestimate how much money is needed to get off the ground — and stay there. Things like permits, marketing, insurance, and equipment can quickly add up. Running out of cash is one of the top reasons small businesses close early.
How to avoid it:
Create a detailed startup budget that includes both one-time and recurring expenses. Consider applying for programs like Starter Company Plus or checking out loan options through the Elgin Business Resource Centre or BDC.
 
3. Targeting “Everyone” Instead of a NicheTrying to market your product or service to everyone usually results in weak messaging and low traction. Local startups often overlook the importance of identifying a clear target audience.
How to avoid it:
Focus your efforts on a well-defined customer segment. Who are they? Where do they shop? What problem are you solving for them? The more specific you get, the easier it is to reach them with the right message.
 
4. Not Building a Local NetworkSome startups isolate themselves, thinking they have to figure everything out alone. But in a tight-knit community like St. Thomas, relationships matter. Networking can lead to collaborations, customer referrals, and valuable advice.
How to avoid it:
 Join local business groups, attend workshops hosted by SBEC or Elgin Business Resource Centre, and participate in pitch nights or community events. You never know who you’ll meet — or how they might help your business grow.
 
5. Ignoring Online PresenceSome entrepreneurs assume that because their business is local, they don’t need a website or social media. But in today’s world, even local customers are searching online first. No website? You’re missing out.
How to avoid it:
Build a simple, mobile-friendly website and claim your Google Business Profile. Use social media to show what’s happening behind the scenes, promote new offerings, and engage your audience. Free tools and local workshops can help you get started.
 
Final ThoughtsBuilding a business is a learning curve, but you don’t have to do it alone. Avoiding these common mistakes can save time, money, and stress down the road.
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Looking for guidance? The St. Thomas & Elgin SBEC is here to support you with free advice, resources, and access to funding opportunities. Let’s make your business idea a lasting success!

Emily Mason, Small Business Advisor

Emily Mason is an entrepreneur, business coach, and small business advocate. Originally from England, she earned a master’s in chemical engineering in Scotland before working at NatWest and becoming a certified business coach. She founded EFL Tutors, a successful online tutoring company, which she continues to run remotely. Now based in St. Thomas, Emily is excited to support local entrepreneurs through the Elgin-St. Thomas Small Business Enterprise Centre.