- Financing: One of the major questions involves financing the small business operation. Some people have enough capital to start from scratch, but others may need assistance through loans and grants.
- Insurance: It is highly recommended for small business owners to have some type of business or commercial insurance. Basic coverage can suffice at first, which can then be expanded or modified as needs arise once the business is up and running.
- Taxes and deductions: Some small business forms may qualify for tax breaks or deductions. You may want to look into your options to see whether your business qualifies.
- Legal considerations: Local and state laws may vary when it comes to business zoning and ordinances. You may need to hire a professional to help point out where your small business might run into issues with compliance.
There can also be very specific issues to consider that depend on your own business’ characteristics. For instance, if your company is tech-oriented, you may need to research the online advertisement laws in your area. Or, if your company is more production-oriented, you may have additional considerations for employee safety.
By far the most common mistake that small business owners can make is not having a thorough business plan in place. Some small business owners may have the idea that they have “everything in their head” and do not need a formal plan when it comes to small business start-up procedures. However, even smaller business operations will be complex and require thorough planning for success.
A good business plan should be both comprehensive (cover a broad range of matters) as well as detailed. The plan should have solid guidelines and should be able to anticipate potential conflicts or problems that might arise in the future.
Many other small business mistakes arise when the owner or management begins “cutting corners.” For instance, failing to double-check employee paper work, or failing to keep accurate record books can spell disaster for the future, especially if an audit is needed. Sloppy advertising practices or waste management practices can lead to fines, disputes, or losses in the long run.
In order to avoid many of the legal issues and pitfalls associated with small-businesses, it is recommended that you work closely with a business lawyer. Your attorney can help you create and implement a business plan for your organization. Also, your lawyer can help when it comes to ensuring business compliance, negotiating with other businesses, and other tasks. If you need to attend any court hearings or meetings, your lawyer can be available to represent you.