Having a new business idea is exciting and it can make you feel like you’re on top of the world – but that feeling fades as you go through executing your plans to start the business.
On the bright side, millions have done this before you – and they have already worked out what some of the biggest and most common mistakes are when starting a business. If you’re considering starting your own business, then you should consider these issues before you dive in head first.
Quitting Your Day Job Before Starting a Business
One of the worst things you can do when starting a business is to quit your day job before you have a solid start. Unless you’ve got the financial backing to keep up with both your personal bills and your business expenses, then you should consider keeping your day job and working your new business as a side hustle to start with. Many entrepreneurs will tell you that it may take longer, but it can be a big mistake to quit your job out of anger, frustration or spite, only to find yourself and your business drowning a couple months later when you start running out of funds.
Not Checking to See if you can Legally Use Your Business Name
You’ve come up with the perfect name for your business – it’s catchy, memorable, and the URL is available – but have you checked to make sure there are no other LLCs, trademarks or copyrights on the name? If you don’t do this first, then you could potentially find yourself in legal trouble down the road when someone finds out that you’ve been using their business name – even unknowingly, it’s still against the law.
Not Creating a Separate Business Bank Account
Keeping your business finances separate from your personal finances is an important aspect of being a business owner. Not only do you look more professional paying your employees, contractors, or others out of a business account rather than your personal account, but it will make things easier for you come tax time, too. If you ever find yourself being audited by the IRS or your state government, then it will make things a lot messier and more complicated if all your finances are coming in and out of a single account.
Not Ensuring you have Proper Legal Representation
Not all businesses are at high risk of being sued, or being involved with matters of law – however, if you are looking into a contract, or are writing one yourself, then you will want to have it reviewed by a competent business attorney. This will ensure that you don’t come across any issues when trying to collect debts you may be owed by clients or customers, among other issues. Find an attorney with experience working with businesses like yours, if possible.
Not Setting Aside a Decent Marketing Budget
Marketing is one of the areas where businesses often try to cut expenses – but especially in your earliest months, it is important for you to have a decent marketing budget. This will ensure that you are able to grow your following, audience and customer base as quickly as possible, especially since this is something that will naturally take time no matter how much money you have to put into it.
If you are looking for legal advice in regards to starting a business, or are having issues with one of the problems mentioned above, then you should reach out to business litigation attorney Peter M. Feaman, PA or call 561-469-0019 to schedule a consultation.