by Michael Bush, author of “Guardrailing: Authentically Guide Your Natural Products Company from Spark to Sale“
Every entrepreneur begins with a vision — be it a product, a service, or a mission they believe can transform the industry. However, the harsh reality is that most startups fail. The path to success is paved with well-intentioned businesses that have crumbled under the weight of poor decisions, inadequate planning, and misaligned priorities.
The best companies are built on passion and discipline. For aspiring entrepreneurs, the key to survival lies not just in having a great idea; it’s also in avoiding the common traps that kill businesses before they have a chance to succeed.
Here are some tips to navigate around the most significant pitfalls.
1. Start with a Real Problem, Not Just an Idea.
Many entrepreneurs become infatuated with their product before validating whether anyone truly needs it. I’ve witnessed founders spending months (or even years) perfecting a product, only to launch it to silence.
Before investing your time and money, ask yourself: What problem does this solve? Who experiences this problem, and how urgently do they need a solution? One startup I advised had a brilliant new take on a health supplement, but they overlooked customer research. When they finally launched, they discovered that their target audience wasn’t willing to pay for their premium formula. The solution? They pivoted early, rebranded, and adjusted their pricing before it was too late.
Lesson: Focus on a validated problem rather than merely on an idea that excites you.
2. Don’t Scale Before You’re Ready.
Growth feels good — until it becomes overwhelming. One natural products company I worked with secured a significant national retail deal early on. The founder was ecstatic, but they lacked the infrastructure to manage the demand. Orders exceeded production, customer service suffered, and their brand took a hit. To make matters worse, the retailer dropped them after six months.
New entrepreneurs often believe that scaling rapidly equates to success. However, scaling without a solid foundation — such as reliable suppliers, a clear business model, and effective operational systems — only accelerates failure.
Lesson: Master the fundamentals before pursuing significant growth.
3. Cash Flow is King (and Queen and Everything Else).
It doesn’t matter how much revenue you generate — if you don’t manage cash flow, you’re dead in the water. I’ve seen founders boast about million-dollar sales months while scrambling to cover payroll. Why? Because they lack financial guardrails.
A supplement brand I collaborated with was generating over $10 million in revenue but was on the verge of collapse due to poor cash flow management. They heavily invested in marketing and inventory without considering payment terms and burn rate. By the time they realized they were in trouble, they had to take on bad debt simply to stay afloat.
Lesson: Track your cash like your life depends on it — because in business, it does.
4. Learn to Say No Early.
The wrong “yes” can ruin your business. New entrepreneurs often overcommit to too many projects, partnerships, or opportunities, fearing they might miss out. However, every poor “yes” drains time, energy, and money from your core business.
One founder I worked with consistently added product lines because he believed that more SKUs would result in more sales. However, instead of increasing revenue, this tactic drained resources. His team was overextended, marketing efforts were diluted, and they ultimately ended up with warehouses full of unsold inventory. After a difficult reset, he streamlined his offerings back to his best-selling products and finally achieved profitability.
Lesson: Focus is a superpower. Guardrail your business by learning to say no.
5. Build a Business That Can Run Without You.
Many first-time entrepreneurs place themselves at the center of everything — every decision, every customer issue, and every hiring choice. However, a business that relies solely on the founder is one that cannot grow (or be sold).
I’ve seen founders burn out because they refuse to delegate. One entrepreneur I advised insisted on approving every minor marketing tweak. The result? Slow progress, exhausted employees, and a company that couldn’t function without his daily involvement. When he finally hired the right leadership and established clear processes, everything changed. His business became more valuable overnight—because buyers want a company, not a job.
Lesson: If you can’t step away without everything collapsing, you don’t own a business — you have a stressful job.
6. Keep the End in Mind (Even If You’re Just Beginning).
Many new entrepreneurs overlook an exit strategy—but they should not. Even if you never sell, a business designed for optionality remains strong. I’ve collaborated with founders who operated their businesses for years without an exit plan, only to discover when they were exhausted that they had nothing a buyer desired—no clear financials, no leadership team, and no scalable systems.
One founder I worked with ran a great business but was overly involved in every aspect. When he finally wanted to sell, potential buyers hesitated because the company depended heavily on him. It took two years of restructuring before he could exit at a fair price.
Lesson: Build with the future in mind. A sellable business can thrive over the long term.
Entrepreneurship is About Smart Survival.
Starting a business is challenging. However, failure is often avoidable. The entrepreneurs who succeed aren’t just passionate — they’re also disciplined. They monitor their decisions, manage their finances, stay focused, and build companies that can endure.
You don’t need to be perfect; you just need to avoid obvious mistakes. Maintain these guardrails, and your startup will have the best chance not just to survive, but to thrive.
Michael Bush is a speaker, advisor, co-founder of GrowthWays Partners, and author of “Guardrailing: Authentically Guide Your Natural Products Company from Spark to Sale“. Michael has more than 25 years of experience leading venture-backed businesses in the natural products, healthcare, and bioinformatics industries. He has participated in raising over $200 million in growth capital and has participated in dozens of M&A transactions including the successful exits worth over $325 million.
