When you’re launching a start-up, there are a lot of moving parts that you have to keep an eye on. It isn’t always easy, and small details can slip through the cracks. Here are a few things to keep abreast of so that you can establish a strong foothold from the beginning without fumbling through snafus that can set you back.
Today’s blog is just one of many resources brought to you by Tuwords.
Legal Mistakes
Mistakes are inevitable, but some can cost you more than others. A few common and often overlooked areas for new business owners are:
- Labor and employment laws. These are the laws that regulate how much you pay, health and safety requirements, as well as discrimination. They change each year, and you must keep up so that you can remain legal and compliant.
- Professional secession. As a small business owner, you are crucial to the daily operations of your organization. According to Schwartz Ettenger, PLLC, it’s in your best interest to plan ahead for retirement as well as unforeseen circumstances.
- Contracts. Contracts protect both you and your customers. As a legally-binding agreement, your contracts serve as the first line of defense against many problems associated with buying or leasing a product or service.
Operational Errors
Once you get your business up and running and compliant with all laws, you still need to keep your finger on the pulse of how you operate. Don’t forget to pay attention to:
- Business formation. Your business structure dictates how the IRS sees you at tax time. Fortunately, forming a business structure isn’t difficult, particularly if you plan to apply as an LLC for the tax advantages. An LLC can also protect your assets in case your start-up finds itself in a legal dispute. You don’t need an attorney, and you can use an online formation service to handle business formation.
- Organizational hierarchy. Your org chart shows new and existing employees the funnel by which all operations take place. Creating one is a very simple process, and you can make a spreadsheet quickly, even if you aren’t tech savvy. (PingBoard has a handy tutorial)
- Budgeting. You know you have to budget at home, but Wegner CPAs suggests also creating a financial plan for your business as well. Not having a budget in place in the office means that you can potentially miss out on expansion opportunities that might require capital you don’t have. Your budget also helps you make important decisions, such as how much to pay your employees and the benefits you can offer.
Other Potential Bumps In The Road
In addition to legal and operational mistakes, you also have to stay abreast of other issues that could hurt your operations. These might include:
- Failure to properly plan before a product launch. When you’re launching a new product or service, there are just so many moving parts that a failure to plan every step can cause endless confusion and problems down the road. That’s why it’s helpful to use a template to generate a go to market strategy and follow it as closely as possible.
- Hiring friends and family. While it might be fun for a little while, your family might expect special privileges and offering discipline at work can take a toll on your personal relationship.
- Using the wrong marketing practices. In today’s world, your marketing will most likely begin online using social media. But, that doesn’t mean that you should not put some energy toward things like branding, signage, and the customer experience. Also don’t forget about other traditional marketing strategies like contests and giveaways, such as awarding tickets for the LA Dodgers or a concert coming to town.
- Setting the wrong business hours. Get to know your customers and when they are most likely to patronize you. Make sure that you are open during the most convenient hours. Not only is this good for your customers, but can help you save on overhead.
There is no way to sidestep every mistake that you’ll make. After all, without these bumps along the way, there can’t be growth. But, you don’t have to make them all, and those listed above are just a few headaches that you can stop before they start.
Article Courtesy of Courtney Rosenfeld
Image via Pexels