SEVEN MOST COMMON MISTAKES OF STARTING OR OWNING A BUSINESS
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So you own a small business or you are thinking about starting a new business? In either case you face critical risks that you may not even realize that you have or ever will have. This information is offered to those of you who have not ever received the proper professional advice that makes you aware of your risks and what you should do about them.
Most people going into business are usually starting on a shoestring or trying to minimize any dollars spent to get started. For scarcity of money reasons most of these business owners elect to avoid critically needed advice found here. This article excludes those start-up companies that have had thousands and millions of dollars of start-up funds and a staff of professional start-up advisors to make sure the right things happen up front.
The purposes of this article are to inform you about these critical risks that you face and of which you may not be aware , and secondly to let you know that there are very affordable solutions to these issues. You only need to contact the author of this post to inform you as to how to most effectively deal with these issues. This information is also intended to help protect your investment in time and money in the company that you commit so much energy…and so this post is about today…
Seven Most Common Mistakes of Starting or Owning A Business
and to convey my message I offer the following excellent article provided by Forbes…
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Forbes
Seven Sadly Common Mistakes When Forming A New Company
Brett Nelson – Contributor Published 8/29/2013
Entrepreneurs face a smorgasbord of risk. Have they identified a real market need? (Strategic risk.) Are they executing effectively? (Operational risk.) Will they go broke wooing customers? (Financial risk.) Will their (likely) failure tarnish their image? (reputation risk.) But there’s another risk that threatens new companies even before they’re born: legal risk.
Steven Gladstone, a lawyer at Hall Booth Smith, headquartered in Atlanta, knows about managing legal risk. Gladstone, 65, has four decades of experience forming companies and structuring private placements, often based on the value of intellectual property. He has counseled entrepreneurs in everything from film production to real estate—and he has acute appreciation for how legal snafus can sting.
Gladstone shared seven legal mistakes that new entrepreneurs tend to make, including real-world anecdotes drawn from his own practice. Bottom line, he says: If you don’t take proper precautions, your startup may be dead on arrival.
Mistake #1: Not getting legal assistance from the beginning.
Just one example: A potential client called me a few months ago with a big problem. Six months before consulting a lawyer, he had taken a partner in a new business. Soon enough, that fellow had eaten $100,000 of my client’s money—on trips to Singapore, designer suits and other flagrant outlays. He also refused to sign a flurry of routine but important documents, and still my client continued to make funds available to him.
Painful result: a high-dollar collection matter three states away, a nasty fraud claim, a corporate dissolution, and a nightmarish settlement negotiation. What should have cost the client $3,000 to $5,000 in legal advice at inception ballooned into a tab five times that amount to untangle a big mess. And to top it off, the venture flat-lined within the next month.
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Dan Norris
Small Business Consultant
Author