For many Americans, business ownership is the ultimate measure of success. However, starting and business and running a successful one are very different beasts. While anyone can start a business, many make some very common mistakes that could cost them their dream. New business owners should avoid these common pitfalls when undergoing startup.
Failing to Correctly Register Your Business
This business startup pitfall could be severely limiting, especially if you have big ambitions for growth. Not all business structures are created equally, so business owners should put forth a degree of research and forethought before registering. Some structures offer flexibility by allowing you to start working immediately. Others offer protection from liabilities. Consider what’s most important to you in the long run before you file your business startup paperwork.
Not Using Contracts or Establishing Procedure
Every business owner would love to skip the administrative work and jump right into money-making. Unfortunately, not taking the time to write out your business’s rules and procedures can make things awkward down the line. What happens when you have a last-minute cancellation? What about return fees? If you have employees, have you gone over the discipline policy with your team? It may seem a little cold, but these policies protect the investment you’ve made in your business.
Drawing up contracts is another vital way to protect yourself. Contracts lay out clear expectations for both the customer and your business, so no one is surprised or disappointed in their service. They also can protect you legally if something goes wrong.
Undervaluing Your Product or Service
We see it all the time. New business owners try to attract a client base by charging as little as possible. After all, it’s hard to say “no” to a steal, right? While the logic is sound, it often leads to business owners massively undervaluing their product or service and struggling to get by because of it. Do market research on comparable businesses in your area. What are they charging for the same or similar products? Find out what it costs to do your service or make your product and price yourself accordingly. Don’t forget to allow a little extra for profit and to pay yourself. Remember: you don’t have to be the lowest price if you have the highest quality.
Business Startup Document Help in the Inland Empire
Business startup takes more than your brilliant ideas and drive to make it happen. Proper planning and documentation are also an important part of entrepreneurship. ProSe Legal offers fast, easy legal document assistance so you can get on with running your business. We specialize in helping with completing and filing documents ranging from business startup to family law.
If you are struggling with legal paperwork as you start your business, today or call (909) 497-1349 to schedule your appointment.
