Disclaimer: The articles published here on the City of Eau Claire Economic Development Division website are meant to be a helpful starting point as you explore doing business in our community. They’re not the final word on rules, requirements, or what’s best for your unique situation. We always recommend checking in with legal, financial, or other professionals for advice tailored to your business.
The first year of business ownership usually comes with a mix of wins along with quiet a few “didn’t see that coming” moments.
Whether you’re opening a storefront, building a home-based service, or launching something entirely new in Eau Claire, there’s a lot to figure out as you go. Every entrepreneur learns some of those tough lessons at each step, but fortunately, you don’t have to learn everything the hard way.
This guide highlights some of the common bumps in the road you might experience and offers simple ways to avoid them, so you can spend more time building momentum and less time troubleshooting.
Skipping the Business Plan
When you’ve got a great idea, it’s tempting to jump right in. But skipping the business planning stage is one of the biggest mistakes you can make early on.
A solid business plan goes beyond paperwork; it’s your blueprint. At minimum, it should lay out what you’re offering, who you’re selling to, how you’ll reach them, and how much it’s going to cost. Starting here helps to clarify your goals and understand your startup’s finances, and it also helps you think through your pricing strategy, potential competition, and what it’ll take to break even. Even if your plan changes (and it probably will), having a clear direction makes it much easier to navigate bumps in the road.
Underestimating Startup Costs
It’s easy to focus on the fun stuff at the beginning—branding, signage, your first batch of inventory—but new business owners often underestimate how much it really costs to get up and running.
Permits, insurance, deposits, software, equipment, and even those unexpected “oops” expenses add up fast. And the hard truth is, most businesses don’t turn a profit right away. It can take months, or in many cases, years before your revenue consistently covers your costs. That’s why having a clear, realistic budget and a financial cushion early on is so important.
Start by mapping out all your startup and monthly expenses. Include fixed costs like rent and payroll, as well as variable ones like marketing or inventory. Then build in a buffer that ideally covers three to six months of runway to help you weather slow periods or unexpected bills. This will give you breathing room while your first year of sales levels out.
🔗 Start Here: How to Create a Startup Budget & Cash Flow Forecast ›
Overlooking Local Regulations
With all the excitement of launching a business, it’s easy to overlook the not-so-fun but extremely essential steps like making sure you’re legally set up to operate. Every decision, from choosing a name to signing a lease, may trigger regulatory requirements.
In Eau Claire, that likely means registering your business name with the state, securing specific licenses or permits, or checking local zoning laws, especially if you’re operating from home. Requirements vary by industry too: restaurants need health inspections, contractors may need state certification, and retail businesses might need signage permits.
Don’t forget, compliance isn’t just a startup task either. Many licenses need annual renewals or inspections. Keep a calendar, stay organized, and build compliance into your regular operations to avoid surprises down the road. Starting with a strong legal foundation protects your business and builds trust with your customers.
Neglecting Marketing
You might offer something amazing, but if people don’t know about it, they won’t come through your doors. One of the most common mistakes in year one is putting marketing on hold, usually because of budget constraints or just not knowing where to begin.
The good news is you don’t need a huge campaign to make an impact. Start simple. Build a clean, easy-to-navigate website with your hours, services, contact info, and some high-quality photos. Make sure you’re listed on Google Business Profile and other local directories. Then pick one or two social media platforms and post regularly—highlighting your offerings, sharing behind-the-scenes moments, or celebrating customer milestones.
Offline, get involved. Eau Claire has a vibrant community scene with festivals, markets, pop-ups, and downtown events nearly every week, and all are great opportunities to get exposure. Partnering with other local businesses for giveaways or collaborations is another great way to grow your audience too.
And don’t underestimate word-of-mouth. Ask your happy customers to leave reviews, share their experience online, and tag your business when they post. A little consistency and creativity can go a long way.
🔗 Start Here: Marketing Basics for New Eau Claire Businesses ›
Trying to Do It All Yourself
In the early days, it’s totally normal to wear a lot of hats. One day you’re building your product, the next you’re designing your new business’s logo, managing the books, and answering every customer email yourself.
Many entrepreneurs take pride in handling it all, but trying to do everything yourself for too long can lead to burnout, missed opportunities, and avoidable mistakes. Being scrappy is great, but there’s a difference between being hands-on and stretched too thin. Tasks like bookkeeping, legal filings, website design, or IT support can quickly become time drains if they’re not your strength. Thankfully, Eau Claire has a talented network of freelancers, consultants, and small service providers who specialize in supporting local businesses. Whatever you need help with, chances are someone in the community can help lighten the load.
You don’t have to outsource everything at once, but identifying areas where outside help can save you time and stress is a smart move even if it costs some money up front. It lets you focus on what you do best and helps build a team of trusted partners as your business grows.
Not Hiring the Right People
As your business grows, you’ll eventually reach a point where you can’t do everything yourself, and that’s a good thing! But rushing into hiring is a mistake many new business owners make.
The people you bring onto your team are an extension of your brand, and the right employees can help your business thrive. Meanwhile, the wrong ones can create stress, slow things down, or lead to costly turnover. It can be tempting to hire the first person who applies, or bring on a friend or family member just because they’re available. But taking the time to find someone who’s responsible, aligned with your mission, and genuinely invested in helping your business succeed is worth the effort. Look for candidates who are adaptable, eager to learn, and excited about what you’re building.
Before you start the hiring process, make sure you understand what roles you need filled and what skills are required too. Writing clear job descriptions, asking thoughtful interview questions, and checking references can go a long way in helping you find the right match. And once they’re on board, investing in training and offering a supportive, positive work environment can help set them up for success.
In a community like Eau Claire, great employees often become amazing ambassadors for your business. Choose well, and you’ll build a team that grows right along with you.
Scaling Too Quickly
So, your business is growing, and now you’re feeling the urge to keep the momentum going. Maybe your online orders are picking up, or you’re seeing steady foot traffic. It can be tempting to expand your space or add a whole new product line right away. But growing too fast, too soon is a common trap for new businesses, one that can stretch your finances, operations, and sanity further than you’re ready for.
Rapid growth may look impressive from the outside, but behind the scenes it can lead to stock issues, cash flow problems, or service hiccups that frustrate your team members and your customers. Scaling should be strategic, based on real demand and solid data—not just excitement or pressure to keep up with the competition. So, before taking a big leap, check your numbers. Do you have consistent revenue to support more staff or inventory? Are your processes running smoothly as-is? Have you built a strong customer base that will sustain the growth? Small, intentional steps are often better than major jumps.
The beauty of being a small business, especially in a supportive community like Eau Claire, Wisconsin, is that you have room to learn and refine as you go. Grow at a pace that feels sustainable, and you’ll be better positioned for success in the long run.
Not Asking for Feedback
You’re putting your heart into your business, but that doesn’t mean you always know what your customers are thinking. Feedback is one of the most valuable tools for any business, especially in the first year when you’re still fine-tuning. Yet many new entrepreneurs either forget to ask or shy away from hearing what could be improved.
Gathering feedback doesn’t have to be formal or intimidating. Ask a customer how their experience was. Send a quick follow-up message after a purchase. Use free tools to create simple surveys. Encourage online reviews on Google, Yelp, or Facebook, and make it easy for people to leave them. Then, keep an ear out at community events or during casual conversations. You can learn a lot just by listening.
The important part is how you respond. If you notice a trend—say, people are confused about your hours or frustrated by long wait times—take it seriously. Even small changes can make a big difference. And when customers see that you’re listening and making adjustments, they’re more likely to stick around and tell others. In Eau Claire, being responsive builds loyalty and keeps people coming back.
Ignoring Work-Life Balance
Starting a business is a lot to manage. The long hours, constant decisions, and emotional ups and downs can make it feel like you’re living and breathing your business 24/7. But here’s the thing: If you don’t take care of yourself, it’s a lot harder to take care of your business.
Burnout is real, and it’s one of the fastest ways to lose momentum. While hustle culture might tell you to work nonstop, the truth is that rest and healthy boundaries are what keep you resilient.
So, set work hours and stick to them when you can. Say no to projects that don’t serve your goals. Take a day off every now and then, even if it feels hard to step away. Your health and well-being are part of your business plan too. And don’t forget to connect with others who understand what you’re going through. Eau Claire has a great network of entrepreneurs who are happy to grab coffee, share advice, or just listen. Whether it’s a local meetup or a quick chat with someone in a similar field, those connections can be a lifeline.
And when you need to recharge, take a walk through Phoenix Park, grab lunch at your favorite local spot, spend time with friends and family... You, and your business, will be better for it.
You’ll Learn More as You Go
Every business is a little different, and mistakes are a normal part of every entrepreneur’s journey. But with the right preparation, local support, and a mindset that’s open to learning, you can avoid the most common pitfalls and build a solid foundation for success in Eau Claire.
Source: Article Cover Illustration by Freepik
About The Author
Kendall Williams
City of Eau Claire Economic Development Division
Kendall’s role is to champion local businesses at every stage of their journey. Whether it’s helping new entrepreneurs find the right location, supporting existing businesses as they grow, managing the City’s loan programs, or providing data to guide smart decisions, she’s all about making Eau Claire a place where businesses can thrive.
