Starting a new business is exciting, challenging, frustrating, and complicated. There is no formula for success, but the chances are that it will take a lot of time, effort and money as well as a little bit of luck. Often, it is a matter of what the new business owner did not do instead of what he or she did do. With this in mind, we thought it would be handy to share some mistakes that startup experts strive to avoid.
- Going it alone: Partnerships can be difficult, but good partnerships often prove the axiom of “Two heads are better than one,” especially if they provide expertise in the area of business you plan to enter. Partnerships ideally provide complimentary skill sets, but they also help defray costs and can lead to more start-up capital.
- Not hiring: Staying lean means lower overhead, but there are likely jobs that can be done by others that will allow the owners to focus on business development. This will also reduce the chances of burnout.
- Not listening to others: You may have had the original vision, but sharing ideas with partners or and getting input from others in your industry can be helpful. Do not be afraid to take customer feedback to heart, whether it is anecdotal or from client surveys.
- Underpricing services and products: Free samples are okay but do not diminish your product by selling it for less than it is worth. New businesses do not want to be known for being cheap or of lesser quality (although cheaper for equal quality using innovation is fine).
- Seeking the perfect product: Refinement can come with time, but getting a good product out there that meets the minimum requirements of your target audience will often be sufficient.
Avoiding trouble down the line
A knowledgeable business law attorney can provide a range of valuable insights as well. They tailor services for the client, including but not limited to drafting a business plan, incorporating the business, drafting operating agreements, avoiding legal risks, and creating an employee manual as well as representing clients in court or before municipal authorities. This enables owners to resolve issues before they become major disputes during or after launching the business.