In 2025, 21.5% of new brands and startups are dead before their first birthday. By year five? Almost half, 49% have packed up and gone home. That's straight from the latest Business Labour Statistics data.
Image Credit: Commerce Institute
Now let that sink in for a second.
If you're a small business owner, a startup founder, or someone managing a new brand in Nigeria, Africa, or anywhere else, chances are you're wearing about 17 different hats right now: marketer, accountant, customer care, cleaner, content creator… the list never ends.
It feels heroic. Until it quietly kills your dream.
What's the point?
Well, most of those failures weren't caused by "bad luck" or "no money". They were caused by the same five preventable mistakes we see every single week from brilliant founders who didn't know better.
In this guide, we're exposing the five most common mistakes small brands make and giving you clear, step-by-step fixes so your brand doesn't become another sad statistic.
Let's dive in.
Mistake 1: Starting Without a Real Business Plan.
"I've got it all in my head."
Famous last words of thousands of dead brands.
Most founders skip the plan altogether or write a 40-page document they never open again. Both are on the same boat.
Without a living plan, your cash disappears on stunning distractions, your focus jumps from TikTok to WhatsApp Business to pop-up shops, and when an investor finally asks, "What's your 12-month track record?", you stammer and watch the prospect disappear.
Here is the Fix.
Stop trying to write a novel. Use a one-page lean canvas or business model canvas. Tick nine crucial boxes:
- Problem
- Solution
- Unique value
- Customer segments
- Channels
- Revenue streams
- Cost structure
- Key metrics
- Unfair advantage
Print it, stick it on your wall, and review it every quarter. That single page has saved more businesses than top business schools ever will.
Mistake 2: Choosing the Wrong Legal Structure and Skipping Basic Protection
This one doesn't shout. It whispers… until the day you lose your house.
In Nigeria and across Africa, thousands of small brand owners are still running as "sole traders" or "business names" while signing contracts, taking loans, and owing suppliers.
One lawsuit, one angry customer, one debt you can't pay immediately, and they come for your personal car, house, and savings.
We've seen it happen to fashion brands, tech startups, and even churches that started side businesses.
Terrifying Branding Mistakes New Brands Make in Year One
- Using a name someone already trademarked
- Signing supplier contracts in your personal name
- No terms & conditions on your website
- Collecting customer data without a privacy policy
Here's the fix.
- Register as a private limited company (Ltd) or LLC equivalent in your country
- Open a separate business bank account TODAY
- Register your brand name with CAC (Nigeria) or equivalent
- Trademark your logo + name (yes, even if you're small)
- Get simple contracts for freelancers & suppliers
- Put basic T&Cs and privacy policy on your site
- Get at least basic business insurance
Mistake 3: Trying to Do Everything Themselves Instead of Building a Team Early.
You're the founder. You're smart. You can design, write copy, edit videos, reply to DMs at 2 a.m., and still wake up to hustle.
For about six months. Then you crash.
Superhero Founder Syndrome is real, and it's the fastest route to burnout, resentment, and a business that can't survive without you glued to it 24/7.
What if you're too broke to afford a team?
Look out for volunteers and interns looking to build a portfolio. Be transparent, and you'd be surprised how quickly you'd get decent volunteers. Of course, do well to train them.
Delegate early. Your sanity and your growth depend on it.
Mistake 4: Building the Product/Service in a Vacuum (Ignoring Customer Feedback & Market Changes)
"If I build it, they will come."
This is the biggest lie ever sold to founders.
Too many people followed that lie, spent months (and millions) perfecting it, launching and then heard crickets.
Why?
Because nobody actually wanted it the way they built it.
Customer research is key; however, the following doesn't count as research:
- Asking friends and family (they'll lie to protect your feelings)
- Running surveys longer than five questions (nobody finishes)
- Assuming TikTok trends = real demand
The 3-Step Validation Framework Used by Brands That Actually Scale
- Problem interviews: Talk to 20–30 real potential customers BEFORE you build anything significant
- Pre-sell the idea: Collect money or emails for a "coming soon" version
- Launch an MVP: Minimum viable product and change it weekly based on honest feedback
Free Tools to Scale Up Your Customer Research
- Google Trends
- Reddit (search your niche + "problem")
- Typeform or Google Forms for quick polls
- WhatsApp broadcast lists for your early fans
Build in public. Listen loudly. Pivot fast.
Mistake 5: Poor Cash-Flow Management and Mixing Personal & Business Finances
This is the arch killer of businesses, even profitable ones.
You're making sales. There's a good income flow. Life is good. Then boom! You can't pay suppliers because the money is already in your cousin's wedding account or the new iPhone you "deserved".
Profit doesn't equal cash in the bank.
Avoid the following financial mistakes:
- Using business money for personal expenses (or vice versa)
- No 3–6 month runway saved
- Invoicing late and chasing payments
- Ignoring tax savings
Stay financially disciplined with these three non-negotiable rules:
- Separate business accounts from your personal accounts
- Pay yourself a fixed salary, no random withdrawals
- Keep a 90-day cash buffer before you celebrate "profit"
Final Thought
We can't help but offer a reminder of all we've discussed so far, so here's the recap in one breath:
- No plan
- Wrong legal setup
- Superhero syndrome
- Building in a vacuum
- Mixing money
Every single brand you admire today, even the big ones splashing on Instagram and TV, has made most of these exact mistakes.
What changed?
They caught their mistakes early and fixed them fast. You now know what they learned the hard way.
It's your turn to stop playing small and start playing protected, focused, and customer-obsessed.
Which of these five mistakes are you currently making?
Drop it in the comments and do well to follow Expanseon on all social media platforms for business tips that keep startup brands alive and thriving.