Biggest Mistakes Entrepreneurs Make in Running Their Business

Insights and tips for Entrepreneurs Surviving to Thrive as they grow their business.

As champions of culture, resilience, and community, Latino and Hispanic entrepreneurs are reshaping the American business landscape. According to the Stanford Latino Entrepreneurship Initiative (SLEI), Latino-owned businesses are growing faster than any other demographic group in the U.S.—a 34% increase over the past 10 years, compared to 1% for all others. Yet despite this growth, Latino entrepreneurs face persistent challenges, and many fall into preventable traps that hinder their long-term success.

After interviewing hundreds of business owners at Hispanic Lifestyle events and producing content over the years, these are some of the biggest mistakes we’ve observed—and how they can be addressed.

1. Underestimating the Power of Financial Planning
One of the most common mistakes is not treating cash flow like the lifeblood of the business. Many Latino entrepreneurs operate without detailed budgets or fail to separate personal and business finances.

“You can’t grow what you don’t measure,” says Marlene Orozco, Lead Research Analyst at SLEI. “A lack of financial planning often leads to difficulty accessing capital or scaling.”

Tip: Partner with a bilingual accountant or financial advisor early. Use digital tools like QuickBooks or Wave to track finances. Attend free SBA financial literacy workshops targeted at Latino entrepreneurs.

2. Not Building a Scalable Foundation
Many Latino-owned businesses start small—often as family-run operations. While this fosters trust and loyalty, it sometimes limits long-term growth.

“I had to stop doing everything myself. Delegating and training a team helped me finally scale,”

Tip: Create standard operating procedures (SOPs) and invest in training early. Think systems, not just hustle.

3. Lack of Digital Presence and Branding
Many entrepreneurs still rely heavily on word-of-mouth and foot traffic. In today’s marketplace, that’s not enough. According to the U.S. Hispanic Chamber of Commerce, less than 40% of Latino-owned businesses have a functioning website or e-commerce strategy.

“Latino businesses are missing out on billions in digital revenue,” says USHCC President Ramiro Cavazos.

Tip: Invest in branding. Even a simple social media presence and a Google Business profile can generate more leads and legitimacy. There are grants and free resources through Grow with Google and Meta Elevate for minority-owned businesses.

4. Fear of Seeking Capital
There’s a deeply rooted cultural hesitation in some Latino communities when it comes to borrowing money or working with banks. As a result, many entrepreneurs bootstrap themselves into exhaustion.

A 2021 Stanford report showed that only 20% of Latino-owned employer businesses received bank loans over $100,000, compared to 50% of white-owned businesses.

Tip: Build relationships with local community banks and CDFIs (Community Development Financial Institutions). Organizations like AMPAC,Business Capital, Small Business Development Corporation of Orange County (SBDC-OC) specialize in funding entrepreneurs.

5. Neglecting Strategic Networking
It’s not just what you know—it’s who knows you. Many Latino entrepreneurs don’t invest in strategic networking or industry associations.

“You have to be in rooms where decisions are made. Access opens doors,” says Richard Sandoval, founder of Hispanic Lifestyle.

Tip: Join your local Hispanic Chamber of Commerce. Attend business and professional networking events. Position your business as part of a larger ecosystem of influence.

6. Failing to Embrace Mentorship and Coaching
Pride and independence often run deep in our culture. But building a business doesn’t mean doing it alone. There’s power in asking for help.

Tip: Seek out mentorship through organizations like SCORE, and Small Business Development Centers offer free one-on-one guidance from experienced business owners.

7. Not Protecting the Business Legally
From not having a registered LLC to skipping contracts with clients or partners, many entrepreneurs expose themselves to risk due to a lack of legal awareness.

Tip: Use free legal clinics available through Latino Business Action Networks or local universities. Even basic steps—like registering your business or drafting contracts—can save your business down the line.

Culture + Strategy = Success
Latino entrepreneurs are resilient, passionate, and deeply tied to their communities. But passion without planning can be costly. As we continue to “Define Culture and Influence,” our mission at Hispanic Lifestyle is to empower our community with tools, knowledge, and connections that close the gap between hustle and long-term wealth.

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