You can be on Entrepreneur’s cover!

6 Major Financial Blunders Entrepreneurs Make Some of those errors, noted by finance bloggers, can cause a lot more long-term consequences than others.

By Brandon Turner

entrepreneur daily

Opinions expressed by Entrepreneur contributors are their own.


In college, I shaved my head into a raging spiked mohawk.

Later, I bought a house to "flip" and spent two years remodeling it, only to break even. (Here's that tragic story!)

Then there's the time that I tried to eat a two-pound block of sharp cheddar cheese to win $20.

We all do stupid things. It's part of what makes us human. However, some of those blunders can cause a lot more long-term consequences than others.

Especially financial blunders.

Related: How to Figure Out Your Margins

And since I'm just as guilty of making these mistakes as the next entrepreneur, I've decided to reach out to some of the web's brightest personal finance bloggers to chime in on the topic. The following six financial blunders have been provided by financial writers I've come to read and respect through FinCon (the annual Financial Bloggers Conference).

Take a look at the following list and ask yourself, "Am I making any of these financial blunders?"

1. Empty bank accounts

"As entrepreneurs, we tend to be really bad at hanging onto cash. As soon as there is some money in the bank, we are constantly reinvesting in our companies. While this has great ROI potential, it leaves us vulnerable to shifts in the marketplace. Keeping cash is like having insurance against life ... you just don't know what's going to happen in your business or personal life that may require you to have cash on hand, but you will be very thankful you had it when that time comes."

-- Alan Moore,

2. Spending without an ROI in mind

"Every dollar you spend as a company has to have a potentially positive ROI. Don't chase after vanity or 'branding,' unless you can quantify it somehow. It doesn't have to always have a positive ROI, that's why you test, but it has to have the potential."

-- Jim Wang,

3. Being too frugal

"Don't skimp on costs necessary to grow your business, even if you're not making a lot of money yet. The same frugality you apply to your personal life doesn't apply in business. Spend money on products and services that simplify your business life, make you more efficient or grow your ultimate bottom line. Think long term and guard yourself against unnecessary burnout due to doing too much yourself."

-- Lena Presley Gott,

Related: 4 Money Mistakes Made by Businesses That Are Always Short on Funds

4. Disorganization that leads to extra expenses

"Disorganization is toxic. Missed deadlines, out-of-control expenses and the constant 'where-did-I-put-that' scrambling all act as friction on your forward momentum and growth. Put into practice a system of organization that enables you to keep the nuts and bolts in place, so you can work your high-value magic efficiently."

-- John Wedding,

5. Expensing everything at tax time

"Thinking it's OK to expense everything because it's a tax write-off, especially if it's not essential to your company."

-- Glen Craig,

6. Not knowing when to pivot (or quit)

"I see this one a lot: pouring money into your business when you should be pivoting or shutting down. You should have traction (paying customers) within a few months after starting the business. If you're using another definition of 'traction' then you're just fooling yourself, wasting your time, and delaying the inevitable."

-- Doug Nordman,

While you are busy working in your business, trying to create the next big thing, don't forget to work on your business as well and keep an eye on the financial shape of your company.

Eating a two-pound block of cheese will mess you up for a couple days. Sporting a mohawk will mess you up for a couple weeks. But making one of the above financial blunders? That could mess you up for life.

Related: A Simple Guide to Understanding Your Profit and Loss Statement

Brandon Turner

Real Estate Investor and Co-host of the BiggerPockets Podcast!

Brandon Turner is a real estate entrepreneur and the VP of Growth at, one of the web’s largest real estate investing communities. He is also the author of The Book on Rental Property InvestingThe Book on Investing in Real Estate with No (and Low) Money Down and several other books. Buying his first home at the age of 21, Turner quickly grew his real estate portfolio to over 40 units using a variety of creative finance methods. He and his wife Heather live in Grays Harbor, Wash. 

Want to be an Entrepreneur Leadership Network contributor? Apply now to join.

Business News

A Non-Profit Newspaper Published a Column Criticizing Facebook. Then Meta Blocked All of Its Posts.

Facebook's communications chief said that the posts were removed because of "a mistaken security issue."

Business News

Elon Musk Reveals When Tesla Will Release Its First Robotaxi

Tesla's CEO says the fully autonomous Tesla taxi is arriving soon — in 122 days.

Business Ideas

63 Small Business Ideas to Start in 2024

We put together a list of the best, most profitable small business ideas for entrepreneurs to pursue in 2024.

Business News

Walmart Shoppers May Be Eligible for $500 After Settlement

Walmart shoppers who purchased weighted goods or bagged citrus in the U.S. or Puerto Rico from late 2018 through early 2024 might be eligible for a share of a $45 million settlement.

Business News

Total Solar Eclipse 2024 Live Feed: Where, When and How to Watch the 2024 Eclipse

Here's what to know about the total eclipse 2024 and a live stream from NASA.

Business News

OpenAI Reportedly Used More Than a Million Hours of YouTube Videos to Train Its Latest AI Model

YouTube CEO Neal Mohan said last week that if OpenAI used YouTube videos to train text-to-video generator Sora, that would be a "clear violation" of the terms of use.