The responsibility of running a small business can put a lot of pressure and stress on you if you aren’t careful. It’s easy to find yourself overwhelmed while trying to handle multiple tasks. This is when business owners tend to make costly errors. Sometimes, business owners learn valuable lessons the hard way by costing themselves money and time. We want you to avoid making any big mistakes for your small business, which is why we’ve put together the following article on small business errors to avoid. Keep reading on to learn about some of the most common mistakes that small business owners make.
1. Not Learning About Tax Laws
One of the biggest issues that small business owners deal with relates to their taxes. As a business owner, it’s a great idea to familiarize yourself with business tax laws that will apply to your bottom line. You need to make sure you are handling accounting and finance within your business the right way. Hiring an accountant and making sure you have the internal processes to adhere to all of the tax laws is an absolute must.
2. No System for Record Keeping
As a small business owner, you need to put an emphasis on record keeping. That way, when the time comes that you need information about past dealings, you will know exactly where to look. There’s nothing worse than having to deal with a legal inquiry or an audit without the records you need. Without a system for record-keeping, you are holding your entire business back. Focus on implementing systems that make record-keeping streamlined within your company to avoid running into serious issues later. It can be time-consuming to create a good record system, but it is absolutely worth it in the long run.
3. Trying to Handle Legal Matters On Your Own
Whenever you are focused on growing your business, you are also focused on getting the maximum benefit from every dollar spent. This leads some small business owners to avoid hiring business lawyers for situations that require expert legal help in an attempt to save money. Trying to handle complicated legal matters on your own is a recipe for disaster. Hiring a solid business attorney for legal advice is worth every penny. A lawyer can help you get your business set up the right way from a legal standpoint and handle contractual work too. There’s simply too much information about business law to try to handle legal matters on your own.
4. Thinking a Handshake Constitutes a Deal
The last big error that many small business owners fall victim too is believing that a simple handshake constitutes a deal. Until you have the deal in a written contract, you should not assume anything. Keep that in mind to avoid unrealistic expectations and costly mistakes.
If you are seeking a professional business lawyer to help you avoid mistakes like the ones mentioned above, reach out to Derryberry & Associates LLP today.