When you start a new business, you want it to be as successful as possible from the very beginning. Unfortunately, many New York entrepreneurs end up making mistakes that can cost them money upfront and leave their businesses less successful in the long run. Your New York business law attorney wants to help. Here are a few common mistakes that many entrepreneurs make and what you need to do to avoid making them yourself.
1. Not Creating a Detailed Business Plan
Business plans provide an outline of how you’ll run your business once you open your doors. They detail your long and short-term goals, financial projections, growth plans, and more. These plans also let you define your company’s purpose and mission so everyone involved can be on the same page. Without that plan, you may end up flying by the seat of your pants and could make your business look less professional than it otherwise would. Instead of taking chances, create a business plan as soon as possible.
2. Choosing the Wrong Business Formation
The right business formation can make it easier to run your company and may give you access to certain tax benefits over time. Choosing the wrong one could be costly for your company and may make running your business more challenging than it needs to be. Do your research and consider how each type of business formation could benefit your company. Remember, you can always get advice from an experienced business law attorney to make sure you choose the right formation for your needs.
3. Not Working With a New York Business Law Attorney
When you choose to not work with one, you risk missing out on key components of your business and may miss out on beneficial advice that can help you set yourself up for success. Instead of not working with an attorney, schedule a consultation as soon as you have a business idea fleshed out. They’ll be able to advise you and help you with everything from contract creation to incorporation in the state.
4. Not Protecting Intellectual Property
Just about every business will have some type of intellectual property that helps set the brand apart from competitors. This could be ideas and concepts like proprietary processes and recipes, or even physical goods like unique products or custom-built manufacturing equipment. When you hire someone to work at your company, whether they’re an employee or a contractor, protecting that property in their employment contract is essential. If you don’t, employees and contractors may legally use your ideas as their own and take them to your competitors.
You’ll want to include clear terms in any agreement you enter into that protects your business’s intellectual property and bans employees and contractors from taking that property and using it themselves. A New York business law attorney can help set up contracts that make those provisions clear and legally binding.
5. Giving up Too Soon
Starting a business is challenging, and while there are some companies that see astronomical success as soon as they open their doors, those are the exceptions, not the rule. It can take time to build a reputation, to get your products or services out into the community, and to build a steady stream of business that helps you grow. Unfortunately, many entrepreneurs give up too soon and never let their businesses reach the potential they had.
When things get tough, don’t give up. Get determined. Work through the pain points as best as you can and let your attorney give you advice on contracts, vendor agreements, and other similar documents so you know you’re getting the best deal possible.
Avoid Making These Mistakes
Making mistakes is a part of doing business, but by avoiding these common mistakes, you’ll set your company up for greater success. And one of the best ways to avoid making these mistakes is to work with a New York business law attorney. Contact Gold Law Firm today to schedule a consultation.