It takes a lot of ambition and positivity to be successful with a small business. Starting a business is the opportunity of a lifetime that certainly comes with its fair share of risks. There are several mistakes that can have big impacts on the overall success of a business. As business lawyers, we’ve seen quite a few small businesses make mistakes that end up costing them. That’s why we’ve created the following article that details some of the common mistakes that can derail small businesses. Remember, if you have any questions related to your business or are looking for experts in business law, reach out to Derryberry & Associates LLP today.
1. Starting a Business Without a Legal Entity
If you plan on starting a business, it’s important to decide on what type of license or registration you are going to use to make your business legal. If you don’t go with a Limited Liability Corporation, you and the partners can be held liable for anything that occurs with relation to the business. It’s best to get some expert legal advice prior to choosing the legal entity for your business.
2. Irresponsible Financial Bookkeeping
Another common issue that can derail a business is getting lazy with the financial record-keeping for the business. It’s absolutely vital to keep track of all of the financials of your business with a solid accounting system. If you don’t, you can run into huge problems with taxes, payroll, and keeping track of profits. As a business owner, you should keep your financial records up to date and accurate at all times. It’s best to figure out the right way to handle the accounting for the business when you are first getting started.
3. Only Planning for Success
Even the best businesses in the world run into problems from time to time. If you are starting a small business, you should certainly keep in mind that you will run into hardships. From a legal perspective, it’s best to hire an expert legal team like the attorneys at Derryberry & Associates LLP. That way, you will always have a legal team for advice on business and other matters. Anticipating issues is one way to stay ahead of the game as a small business.
4. Underestimating the Importance of Marketing
Another classic reason why small businesses get derailed is that they fail to recognize the importance of investing time and money into marketing. You have to figure out a way to make your product or services attractive to potential customers. Constantly testing new marketing techniques and messaging can help your small business stand out from your competition.
These are some of the most common reasons why small businesses get derailed. It’s absolutely crucial to have a great legal team by your side as you get your small business off of the ground. Reach out to Derryberry & Associates LLP today to hear about how we can help you with all of your business-related legal needs.