Summary
We asked experienced First Internet Bank customers what they would tell someone just starting a business. Their answers, shaped by years of building, adapting and learning, offer practical guidance on business planning, pricing, choosing the right people, managing finances and defining success.
Lessons From Business Owners Who Have Been There
Ask a business owner about the early days, and you will likely hear about long hours, a few lucky breaks and at least one decision they would handle differently today. Behind every lesson is a real moment: the price that was set too low, the agreements that should have been put in writing or the expense that quietly grew month after month.
In a recent First Internet Bank survey, small business customers shared the lessons that shaped how they operate today. Most respondents have been in business for more than 10 years, and many for more than 20. Although their experiences were different, the themes were remarkably consistent.
Here are five lessons experienced business owners want the next generation of entrepreneurs to know.
1. Build a Business Plan, but Leave Room to Adapt
A business plan helps you turn an idea into something concrete. It gives you a place to define your goals, estimate costs and test your assumptions before investing more time and money. But once real customers, competitors and daily decisions enter the picture, even a strong plan will need to change.
One business owner with more than 10 years of experience emphasized the importance of balancing preparation with flexibility, advising owners to “draft a business plan, but don’t assume the plan will survive contact with reality. Stay flexible, within your goals.”
It’s easy to picture what they mean. Maybe the service you expected to lead sales receives less interest than a smaller offering. Maybe a supplier raises prices, a key employee leaves or customers begin asking for something you had not planned to provide. The goal is not to abandon the plan whenever something changes. It is to notice what the business is telling you and respond before a manageable issue becomes a larger one.
Several owners also warned against moving so quickly that rushed work creates more work later. Flexibility matters, but so does taking a breath before an important decision.
How can a new business owner build flexibility into a plan?
- Write down your goals and the assumptions behind them.
- Compare your plan with actual results at least quarterly.
- Identify a few signals that would prompt you to adjust pricing, expenses or strategy.
- Slow down for major decisions, especially when pressure makes everything feel urgent.
2. Price Your Work for the Value You Deliver
If one regret surfaced more than any other, it was pricing. Many new owners set low rates because they want to win early business or worry that customers will walk away. The challenge is that an introductory price can quickly become the price customers expect, even after your costs and expertise have grown.
One owner with more than 20 years of experience said he wishes he had been more aggressive with pricing from the start, adding that “most clients are more willing to pay higher prices than I tend to think.”
For example, an owner may price a service low to attract new customers. As the business grows, so do expenses, from materials and payroll to insurance and technology. If the price stays the same, the business may be busier than ever without becoming more profitable.
Low prices can also attract customers who are not the right fit. The goal is not to charge more simply for the sake of it. It is to set a price that reflects your time, expertise, costs and the value you deliver, while giving the business room to provide good service and grow sustainably.
Research the market, calculate the full cost of the work and revisit pricing as your business changes. Confidence in your value matters, but so does knowing the numbers behind it.
3. Choose the People Around Your Business Carefully
The people around your business can shape it just as much as your product or strategy. Survey respondents shared lessons about partners, advisers, employees and even the customers they choose to serve.
One long-time owner described a handshake agreement with an unfamiliar partner that led to a $250,000 loss. The lesson was direct: “Get everything in writing and know who you’re dealing with.” It is a powerful reminder that a friendly conversation is not a substitute for clear terms, defined responsibilities and documentation everyone can reference later.
The same care applies when choosing an accountant, bookkeeper, attorney, insurance agent or technology partner. Ask questions, check references and make sure they understand both your business and its goals. A trusted adviser should make complicated decisions clearer, not leave you with more uncertainty.
Fit matters with customers, too. A new opportunity can be exciting, but not every opportunity is good business. A customer whose expectations fall outside your process can take time away from the relationships that are a better match. Knowing what you do well and whom you serve best can make it easier to recognize when the answer should be no.
How can you build the right team around your business?
- Put agreements, responsibilities and payment terms in writing, even with people you know.
- Vet advisers and partners before relying on their guidance.
- Look for customers whose needs and values fit your business.
- As you grow, delegate with clear expectations and give capable people room to work.
4. Understand the Numbers Behind Your Business
Being great at your craft is not the same as being prepared to run a company. Experienced owners said budgeting, invoicing, taxes, cash flow and delegation played a much larger role in their success than they expected when they started.
One owner with more than 20 years of experience warned that “expenses can be a silent destroyer to an otherwise profitable business.”
An expense does not have to be dramatic to create a problem. A handful of software subscriptions, supplier increases, delivery fees or small recurring charges can quietly reduce the margin on work that still looks profitable on the surface.
Revenue may get the attention, but cash flow, pricing discipline and expense management help determine whether a business can keep moving. A profitable invoice does not pay this week’s bills if the customer will not pay it for another 60 days. That is why owners need to know not only how much the business is earning, but also when money is coming in and going out.
Taxes were another common theme. Respondents encouraged new owners to understand their local, state and federal obligations, file on time and avoid assuming every business purchase is automatically deductible. Because tax requirements vary by business, consider consulting a qualified tax professional about your specific obligations. Respondents also emphasized the importance of emergency reserves and having a backup plan for surprises even a strong forecast cannot predict.
At a minimum, business owners should be able to answer a few basic questions:
- How much cash is available today?
- Which expenses are increasing?
- Which customers, products or services are most profitable?
- What bills are coming due?
- How long could the business operate if revenue slowed?
5. Define What Business Success Means to You
Some of the most personal survey responses had little to do with revenue alone. For some owners, success first meant earning enough to get by. Over time, it grew to include creating jobs, doing meaningful work, building a workplace they were proud of and making room for life outside the business.
That definition can change. Early on, saying yes to nearly every project may feel necessary. Years later, success may mean having the freedom to choose the right work, spend more time with family or build a team that can keep the business moving without the owner handling every decision.
Knowing what matters to you can make everyday choices clearer. It can help you decide whether to pursue growth, take on a new customer, hire another employee or protect more of your own time.
One owner with more than 20 years of experience suggested setting aside 10 to 15 minutes each week for reflection and asking, “Did this week contribute to the person I want to be in 20 years?”
How can you define success on your own terms?
- Write down what a good year looks like, both financially and personally.
- Set aside a few minutes each week to review what worked and what did not.
- Revisit your definition as your business, team and life change.
No One Builds a Business Alone
One message connected nearly every lesson: no business owner gets there alone. Respondents credited mentors who shared hard-earned perspective, advisers who helped them avoid costly mistakes and employees who stayed committed through years of change.
The right bank can be part of that support system, too. At First Internet Bank, we believe business banking should make it easier to focus on what you started your business to do in the first place. Do More BusinessTM Checking is designed to simplify everyday money management, so you can spend less time banking and more time serving customers, leading your team and planning what comes next.
When your goals go beyond everyday banking, our team is ready to help you think bigger. From savings to commercial and SBA financing, we offer solutions for where your business is today and take the time to understand where you want to go next.
Because doing more business is not about doing everything yourself. It is about having the right people in your corner.
Ready to do more? Explore First Internet Bank business banking or connect with a Relationship Banker at [email protected] or 1-888-873-3424.
Frequently Asked Questions for New Business Owners
What should a first-time business owner know before starting?
Start with a written plan, understand your costs and cash flow, price your work sustainably, put important agreements in writing and build a trusted team of advisers. Revisit your assumptions regularly as real customer and financial data becomes available.
How often should a business plan be reviewed?
A quarterly review is a practical starting point for many small businesses. Compare your assumptions with actual revenue, expenses, customer demand and cash flow, then update the plan when the data shows a meaningful change.
How should a small business set prices?
Consider the full cost of delivering the product or service, including labor, overhead, taxes and time. Compare market rates, define the value you provide and review pricing regularly rather than waiting until margins are under pressure.
How much should a small business keep in emergency savings?
The right amount depends on the business, its fixed expenses and how predictable revenue is. Many owners aim to build several months of operating expenses, then adjust based on seasonality, concentration risk and access to credit. A banker and qualified financial or tax adviser can help you evaluate the appropriate target.
How can business banking technology help an owner manage finances?
Digital tools can make it easier to monitor balances, move money, view accounts and understand cash flow. Eligible First Internet Bank business customers can also use a secure, read-only MCP connection with supported AI assistants to ask questions about approved account information without exporting spreadsheets or sharing bank login credentials.
What types of financing can help a business grow?
Depending on the need, a business may consider a line of credit, term loan, commercial real estate loan or SBA loan. Financing can support working capital, equipment, expansion, real estate, debt refinancing or a business acquisition. The right structure depends on cash flow, collateral, use of funds and the owner’s long-term plan.
Products and services are subject to eligibility requirements and applicable terms and conditions. Loans are subject to credit approval. Information provided in this article is for general informational purposes only and is not intended as legal, tax or financial advice. Consult an appropriate professional regarding your individual circumstances.