Ben Knight, former trader-turned Wealth Strategy Expert and founder of Hertfordshire-based The Trade Tribe, reveals the six biggest money mistakes he sees business owners most frequently make – and outlines his tips for avoiding them.
Running a small business demands focus, resilience and careful financial management.
But even the most capable owners can fall into common money traps when it comes to their personal finances.
These mistakes don’t come from recklessness, but often from following outdated advice or feeling too overwhelmed to make strategic changes.
Since founding The Trade Tribe, I’ve worked with hundreds of business owners across the UK. No matter their sector or turnover, the same six money mistakes come up again and again. Here’s what they are – and how to avoid them.
#1. Believing money alone will make you wealthy
Putting money aside in a business savings account might feel like the responsible thing to do, but if you’re not investing surplus profits, you’re missing the opportunity to grow your capital. Inflation usually outpaces interest rates, which means your cash reserves are quietly losing value. Investing, when done sensibly, is a more powerful way to build long-term financial strength.
#2. Waiting too long to invest
“I’ll look into investing once the business is more stable” is something I hear often. The problem is, the perfect time rarely arrives. Business owners are always busy, but delaying your investment strategy costs more than you realise. Time is your most valuable asset – the earlier you start, the more you benefit from compounding returns.
#3. Believing investing is too complicated
Finance often comes wrapped in jargon, which makes it easy to assume it’s too complex or risky to get involved. But investing doesn’t have to be difficult. The key principles are straightforward once you cut through the noise. Every business owner should understand them – and can.
#4. Falling for get-rich-quick schemes
From crypto fads to social media influencers promising passive income, it’s easy to get distracted by shortcuts. But if something sounds too good to be true, it usually is. These schemes are often little more than dressed-up gambling and can seriously undermine your business or personal finances.
#5. Handing over full control to someone else
Outsourcing your finances to an accountant or adviser can be helpful – but it’s risky to disengage completely. Even if you have a trusted expert supporting you, you need to stay informed about where your money is going and how it’s working for you. It’s your business, after all.
#6. Letting emotions lead financial decisions
Fear, impatience and overconfidence can all cloud your judgment. Fear stops you from investing at all. Impatience leads to poor short-term decisions. Overconfidence can create unnecessary risk. That’s why your investment strategy should be structured, steady and emotion-proof.
Before I became a trader, I made many of these mistakes myself. I delayed investing because it seemed too complicated, and thought that simply saving was enough. But I learned that those approaches keep you stuck in survival mode – not growth mode.
Here’s the good news: it’s not too late. Even if you’ve been focused solely on the day-to-day running of your business, you can still shift your financial future.
Start small. Open a business investment account. Learn one key investing principle. Automate monthly contributions. Set a clear financial goal for the business, not just yourself.
You don’t need to be perfect – you just need to get started.
