So you have decided to start your own business? That’s fantastic! But where do you start? What mistakes should you avoid when you start your first business? According to the Bureau of Labor Statistics, approximately 20 percent of businesses fail in their first year, and 50 percent fail by their fifth year. When starting a business you will make mistake and face hardship along the way but you could potentially avoid some trouble by reading up on what the three most common mistakes that new business owners make and how to steer clear of them in the first place!
The first common mistake is failure to do research. Taking the time to do research and see what the market looks like for your intended product or service is part of avoiding failure in your first year of business. Who is your intended customers that you are trying to reach with your product or service? Have you spoken with business owners that are already in this industry? Don’t limit your research to close friends and family members, they might not be able to see what your objective is. Speak to other business owners in your area of interest in your city, state, and country.
The second common mistake is failure to form a legal entity or forming the wrong business entity. Today, it’s very simple for new business owners to do-it-yourself by submitting a single filing but internet programs do not prepare comprehensive, tailored documents or provide legal advice about your specific business and plans. Lack of appropriate legal support while forming an entity can lead to major issues down the line as your business grows! It is prudent to invest in the advice of legal counsel or a business attorney. Here at McClenaghan Law Group, we have experience representing various types of entities from small businesses and big dreamers to larger corporations and more experienced business people. If you’re thinking of starting your own business, call us today to set up a consultation with an attorney. We can help you decide which business structure is best fit for you!
The final common mistake is that business owners fail to have valid agreements in place! Every agreement between a business owner and someone else should be valid and in writing. Without properly written contracts you may be unable to defend your company during a dispute or lawsuit. This is important for clients, employees, vendors, and anyone else a business owner makes an agreement with. The written agreement should specify the agreed-upon terms of the business relationship or transaction. Not sure what makes an agreement valid? Give us a call and we can help you create a well-drafted agreement for your use. Similarly, all documents presented to you and your business should be reviewed by a licensed attorney who is experienced with that state law that controls the agreement. Not all attorneys can review all documents, but McClenaghan Law Group has you covered in Ohio and Florida!
Successful business owners take their time to the research and plan before launching their new business. In addition, they are not afraid to seek advice from others. Our team of experienced attorneys is here to help you succeed. If you would like to avoid trouble while starting your business, give us a call to set up a consultation! Our office number is 614-429-1053 or you can email firstname.lastname@example.org