Starting Strong as an Entrepreneur: 5 Financial Pitfalls to Avoid

Many entrepreneurs start their journey full of energy, but sometimes overlook the importance of a solid financial foundation. Without that foundation, unexpected issues can arise that hinder your growth—or worse. In this blog, I’ll share five common pitfalls that starting entrepreneurs should avoid—and how to get it right from the beginning.

1. No or unclear bookkeeping

Many starters think, “I’ll get to it later.” But without structure from the beginning, it’s easy to lose track. Invoices are missed, receipts disappear, and you don’t know where you stand financially.

Tip: Start immediately with a simple, digital bookkeeping system.

2. No tax buffer

Your first revenue has arrived — a great feeling. But part of that income will need to go to the tax authorities.

Tip: Set aside 21% for VAT and 30% for income tax from every payment. This avoids stress during tax season.

3. Unfamiliar with tax benefits

Starters are entitled to deductions such as the self-employed deduction, startup deduction, and the small business scheme (KOR). Many entrepreneurs don’t take full advantage—or miss out entirely.

Tip: Get informed about which tax breaks apply to your situation. It can save you hundreds or even thousands per year.

4. Choosing the wrong legal form

Most start as sole proprietors, but in some cases, a BV or partnership is more beneficial or offers better protection.

Tip: Consider a short legal and fiscal assessment at the start. It prevents costly restructuring later.

5. Doing everything yourself

Accounting, taxes, marketing, customer service… As a starter, you wear every hat. But doing everything alone for too long can block your growth and peace of mind.

Tip: Focus on what you’re good at. Outsource what drains your time and energy, so you can focus on running your business.

Our approach as your advisor

At Effectivity Consultancy, we help entrepreneurs set up a solid foundation from day one. Clear, efficient, and tailored to your goals. No generic solutions—just the right support for your pace, needs, and plans. Whether you need bookkeeping help or strategic advice, we offer clarity, structure, and fiscal insight you can build on.

Make informed decisions before you get started. Feel free to contact us — we’re happy to think along with you and help you move forward with an approach that works for you and your business.