How to Avoid Common Mistakes Startup Business Owners Make

How to Avoid Common Mistakes Startup Business Owners Make

Starting a business is very complex. You begin with passion and enthusiasm, but red tape and logistical hurdles can turn your dream into a nightmare. While pitfalls can foil the first-time entrepreneur, there are ways you can avoid them. The partners at Heritage Law LLC want to help you keep your business aspirations on track.

Understanding the Marketplace

Too many Orange County businesses jump into the fire without a solid business plan and research. No matter how good you think your product or service is, there must be a market for it. You need to ask yourself several questions to make sure your business is capable of succeeding. You must have an idea of the landscape that you are targeting. Consider things like:

  • Are customers talking about my product/service
  • Are there competitors for our product/service
  • Are my competitors succeeding?
  • What are my competitors’ shortcomings?
  • Have we thoroughly researched our target customer?
  • Do we have the capital to survive a slow start?

Hiring the Right People

You know you need the workforce, but you aren’t sure when to hire them? This is a common problem for owners of startups. Often, businesses wait too long to bring people in and then hire hastily. As you plan the launch of your business, identify key players that can handle important business areas. When your brand launches you will have the right people in place.

During your planning and interviews, make sure your prospective employees understand the marketplace, and possess a strong knowledge of what your product or service brings to consumers. You will likely start with a small team, and those first hires will be critical to the infrastructure of your business. Make sure they identify with your core values and can represent your brand as well as you do.  They are an important representation of you and your new company.

Preparing for the Worst

Too many businesses launch with a bang but quickly fade to a whimper because they weren’t prepared for the worst. In the old days, small business owners would staple their first dollar bill received against the wall as a proud reminder of the first sale. Now business owners dream big, envisioning multi-million dollar buyouts from Fortune 500 corporations. Unfortunately, when you start your business, you must prepare for the worst. Too many factors can derail businesses early on. These are some of the things businesses can plan for to endure a rocky road the first year or two:

  • Make sure you have enough capital to survive your lengthy uphill climb.
  • Don’t be overconfident – having an open mind to others’ suggestions can help get your business past potential trouble spots and over the top.
  • Ask for help – business consultants can share experiences that can help you overcome first-time hurdles

Protecting Yourself with Legal Help

Some business owners fly blind and rely on do-it-yourself incorporation kits and other money-saving shortcuts. But where they save in the early stages of business formation can cost them in the long-term. Taking an idea and turning it into a business requires a lot of knowledge, research, and good fortune. The best thing you can do to ensure that you are legally covered every step of the way is to hire legal representation. A business attorney can spot those potential problems lurking around the corner Legal representation from the start ensures that an attorney understands your business inside and out, your goals and objectives, and knows how you established and how you want to grow your business.

The attorneys of Heritage Law, LLP work closely with our new and established business clients to ensure that the selection of an entity form reflects defined goals, can accommodate growth, and is flexible enough to allow for easy amendment as your equity group and management practices might change. Once your business is up and running, we can help you with the planning and details of your operations. Whatever type of business you are engaged in, our business attorneys can give you the advice and support you need. If you are starting a business and would like sound, legal guidance along the way, contact Heritage Law LLP.