There’s a particular energy that runs through Bunbury and the South West with summer around the corner. The weather’s warmer, the highway starts filling with holiday traffic, and locals are out and about enjoying everything our region has to offer. For many, it’s the perfect time to launch a new venture, especially in hospitality, tourism, retail, and other service industries that thrive on foot traffic and a busy calendar of local events.
But while it’s exciting to ride the wave of summer enthusiasm, starting a business isn’t just about a great idea and a prime location. Getting your finances right from the start can make the difference between long-term success and an uphill battle. At Force Finance South West, we see a lot of passionate new business owners come through our doors. The enthusiasm is inspiring, but it needs to be backed by solid planning and the right financial support.
In this article, we’ll explore some common financial pitfalls that new businesses in our region face, and how you can avoid them to give your business the best chance at success.
1. Underestimating Start Up Costs
One of the first hurdles new businesses hit is realising that start-up costs almost always run higher than expected. Fit-outs, stock purchases, signage, licensing, and equipment all add up quickly. Then there are the “hidden” extras—insurance premiums, security systems, point-of-sale setups, and professional advice fees.
We’ve seen plenty of cases where business owners budgeted for the essentials, only to find themselves caught short when suppliers ask for deposits or unexpected costs crop up. The result? Stress, compromises on quality, or worse—delays in opening.
How to avoid it:
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Build a buffer of at least 10–20% into your start-up budget.
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Ask others in your industry what they actually spent getting started—it’s usually more accurate than relying on a spreadsheet estimate.
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Talk to your finance broker early about setting up the right facilities to cover those upfront costs without draining your personal savings.
2. Not Having Enough Working Capital
Even if you’ve nailed your fit-out and stock levels, you still need to cover the day-to-day running costs until the business finds its feet. Rent, wages, utilities, and supplier invoices often start coming in before you’ve built a steady stream of revenue.
In Bunbury and across the South West, service businesses can see strong surges in summer but quieter months during winter. Without working capital in reserve, the cash flow gap can put enormous pressure on the business and its owners.
How to avoid it:
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Be realistic about how long it will take to break even. It often takes longer than you think.
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Structure finance in a way that doesn’t just cover the fit-out, but also gives breathing space for those first six months.
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Monitor cash flow carefully and don’t assume every good week will repeat itself.
3. Not Preparing For Delays
Ask anyone who’s started a café, retail shop, or tourism business around here, and they’ll tell you: things rarely open on the exact date you plan. Council approvals take longer than expected, builders run into delays, equipment backorders drag out for weeks. And if you’ve already announced an opening date to the community, the pressure doubles.
We’ve seen businesses run out of funds before they even open their doors, simply because they didn’t plan for delays.
How to avoid it:
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Allow plenty of lead time in your schedule. Opening “before Christmas” sounds great in theory, but give yourself wriggle room.
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Factor in extra months of expenses in your financing, in case rent or wages kick in before revenue does.
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Keep communication clear with contractors and suppliers, and don’t be afraid to build in penalties or protections into agreements.
4. Relying On Personal Credit
It’s tempting to lean on personal credit cards, redraws on the home loan, or family loans to get started. While it can feel like the “simpler” route, it blurs the line between your household finances and your business. That can make it harder to separate performance, track costs, and scale the business in future.
The other issue is risk—if the business hits a rocky patch, your personal credit and assets are on the line.
How to avoid it:
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Explore proper business finance options from the start. These are structured for growth and give you clearer visibility over your numbers.
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Protect your personal finances wherever possible. A finance broker can help you understand the best way to structure facilities in line with your goals.
5. Not Seeking Professional Advice Early
The South West is full of hardworking, resourceful people. Many new business owners here are used to doing things themselves, rolling up their sleeves and getting the job done. While that spirit is fantastic, business finance is one area where going it alone can lead to costly mistakes.
Not all finance products are created equal, and not every lender understands the nuances of starting a seasonal or regional business. By getting professional advice early, you can avoid being locked into unsuitable terms or paying more than you need to.
How to avoid it:
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Engage with a local broker who understands the South West market.
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Build a team around you—accountant, broker, mentor—that can provide different perspectives.
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Remember: asking questions early usually saves money and headaches later.
A Local Perspective
Here in Bunbury and the South West, summer is a time of opportunity. The influx of visitors and locals out enjoying the sunshine creates fertile ground for new businesses, particularly in tourism, food and beverage, and lifestyle services. We love seeing new cafés open their doors, tour operators launching, and fresh retail spaces bringing energy to our towns.
But success stories don’t just happen by chance. They’re built on the back of careful financial planning, resilience, and a willingness to learn from those who’ve gone before.
Final Thoughts
Starting a business is one of the most rewarding things you can do, but it does carry risk. By avoiding common pitfalls like underestimating start-up costs, ignoring working capital needs, or relying on personal credit, you give yourself the best chance of success.
At Force Finance South West, we’re passionate about supporting local businesses from day one. We know the local rhythms, we understand the seasonal pressures, and we’re here to help make sure your financial foundations are strong enough to weather the journey.
So, if you’re planning to launch your business this summer in Bunbury or anywhere across this beautiful region we get to call home, come and have a chat with us. We’ll help you get set up with the right financial support, so you can focus on doing what you do best, bringing your business dream to life.