When starting a new business, people often focus on avoiding mistakes after the company is up and running. For instance, they don’t want to be open so long that overhead costs are unsustainable, but they don’t want to have such short hours that many customers can’t get to the business while it’s open. Everything is a balancing act.
This is important, but you also want to make sure you know what mistakes to avoid when you’re first forming your business and getting it off the ground. These mistakes could cost you significantly, even if you haven’t opened your doors yet.
Errors to avoid
While every business is unique, it is still possible to identify common errors across industries. Here are a few of the most common ones:
- Trying to start without proper funding
- Not having a partnership agreement
- Not doing enough market research
- Failing to create a written business plan
- Registering the company as the wrong entity
- Ignoring support and attempting to do everything alone
- Not getting a business license and other official documents
- Not understanding payroll and tax obligations
- Doing nothing to protect intellectual property from the competition
- Not using things like NDAs (non-disclosure agreements) when telling new employees about important company secrets
- Simply charging too little for the services and/or products that you’re offering
As you work to get your business ready to open, take the time to consider these mistakes, the things you need to do correctly, the legal steps you need to take and how you can position yourself for long-term success right from the very beginning.