Seven Pitfalls Entrepreneurs Should Avoid When Starting a Business

Man With Super Hero Cape - Oh No Mistake Pitfall Image 25Jul16 shutterstock_424968733
Photo credit: Shutterstock

Let’s face it – you are brave, excited and eager to get started on your journey as a business owner. You have heard what the naysayers proclaim will happen when you take the plunge to open your new boutique, salon or create your ingenious product.

Aside from all of the discouragement, fear and cautionary tales about what can happen if your business has challenges, you are determined to make it work. That’s the true spirit of an entrepreneur – to face obstacles head on and push forward. You are feeling anxious, the to-do-list is growing, and you are ready to put the ‘open for business’ sign on the door.

Have you prepared for this day for months and maybe even years? You say to yourself, let’s do this now. Yes, you are clever, smart and business savvy. So you ask, what’s the problem?

While you are busy getting your product ready for sell or dressing up your storefront, you need to be aware of the sneaky traps that are lurking nearby for the unwary business owner.

Here are seven pitfalls that can easily trip you up:

  1. The do-it-yourself entity formation. Consult with an attorney to assist you with forming the best entity for your new venture, review contracts and provide advice.
  1. Finances that run amuck with no oversight from a professional. Contact an accountant and get information on taxes and other financial matters.
  1. Opening your business without the proper licenses. Research your industry and find out what you need to operate your business.
  1. Lack of bookkeeping for bank statements. Start early on in your business with reconciling statements, transactions and accounts receivable. Hire a bookkeeper.
  1. Not investigating local zoning requirements. Some localities may not allow certain operations near places like schools or churches.
  1. Taking marketing for granted. Get a brand strategist, PR marketing service and a website designer to get your business ready for doing business in the 21st century.
  1. Handling customer service operations by yourself. Hire a virtual assistant to help with tasks and have an answering service to answer and screen customer calls.

You get the idea; sure you have talents and gifts that can be used in your business. However, the key is not to take on all of the operating tasks by yourself. A team effort is a good idea to get your business off the ground to soar high.

Your eagerness to get the ball rolling with your new venture can easily lead to a misstep of epic proportions. When it comes to your business, save the superhero shenanigans for the comic books. Now go make it happen in your true entrepreneurship style.

Aquanetta J. Betts, J.D., is an attorney, speaker and blogger. Follow her on Facebook and twitter. Copyright 2016. This article is for informational purposes only and is not intended to provide legal advice.

 

 

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