1. Overestimating Revenue: Being overly optimistic about sales projections can lead to financial strain. 2. Undercapitalization: Not securing enough funding can hinder growth and sustainability. 3. Ignoring Cash Flow Management: Poor cash flow management can lead to insolvency despite high sales. 4. Excessive Spending: Overspending on non-essential items can deplete resources quickly. 5. Neglecting Financial Review: Regularly reviewing financial statements is essential to identify issues early and make informed decisions.