Staring a new business is significantly more fraught with potential risks than it is with the potential for success. With three out of four start-ups failing according to the Wall Street Journal, it’s more important than ever to have a strong team which includes an experienced business attorney on your side. Here, we examine three of the most common and devastating mistakes made by entrepreneurs looking to establish a new company:
- Not spending enough time on your business plan: Your business plan lays the groundwork for how your company is going to grow, giving you flexibility and vision whilst restraining unviable or over-ambitious ideas. This plan will show how you are planning to fund your venture, market analysis for the industry in which you will be operating, your basic business structure, marketing structures, financial projections and details about your products. As such, it becomes a manual for making decisions and taking your business down the desired path – and without it, companies can easily lose their focus and not know where they are going and how to get there.
- Lack of comprehensive financial planning: It can take anything from months to years before your business is able to support itself and pay off any debts, so it’s vital you have access to sufficient capital as well as professional expertise on how to spend it. It’s also important for your financial planning to include a sound contingency plan for events that are beyond your control. The recent global economic crisis illustrates just how suddenly events can overtake a business through no fault of its own, with devastating consequences.
- Not prioritizing legal expertise at an early stage: Having access to a business lawyer is something many business owners only feel is necessary when facing a legal problem. This is a significant misconception whereby lawyers exist to put out costly fires rather than preventing the fires in the first place. Having a legal advisor experienced in small business issues and commercial law is invaluable from the very beginning when starting a new business. Not only can they draft contracts, set up business structures, advise on commercial transactions and employment laws as well as apply for the correct business licenses for your operation, they are also able to ensure that every action your company takes is legally sound from the start – and that your rights are fully protected. This means if you do face a legal issue – as the majority of small businesses do within the first two years of operation – your company can deal with it efficiently and cost-effectively.
At Sedita, Campisano & Campisano, LLC, a commercial law firm in NJ, we offer small businesses in New Jersey more than 30 years of commercial law experience and an invaluable working relationship that gives your business a solid foundation for success. For more information on our services, please visit our website at https://www.scclegal.com today.