Blunders to Avoid when Starting a Small Business

It is no secret that business is all about risky thing. However, it doesn’t mean that we should avoid the business itself. Instead, we need to learn what kind of common mistakes that a businessman may do when they are starting their business.

Fortunately, we have a list of mistakes that you should avoid when starting a small business. Learn from the other’s mistake and make it as your strength!

Mistake 1: Starting without an entity

Most states require a business to secure a business registration or license. However, the process might be dissimilar from organizing or incorporating a company. Remember that unless you apply for limited liability corporation protection, your business partner is able to be held liable for something bad happens associated to the business.

Mistake 2: Inadequate fund

The problem is simple. Without money, your business may end up in failure. Money or capital is important in every business. Whether your business will be capital intensive or capital efficient, money to run the business is significant. Then, when your business is lacking of money, there is higher possibility that the problem will become the cause of failure.

Mistake 3: Planning just for success

Of course you want to be success on your business, but it doesn’t mean that you only think and plan about way to success only. A new small business must be flexible when it comes to business plan. There is always chance of failure and you should have more than one plan so that you can still stand up when there is failure on your main plan.

Mistake 4: Don’t understand the market

Another common mistake when starting a small business is when you actually understand the industry, but not really understand the market. Most businessmen may have known the industry they want to work with. However, sometimes they forget about the market and cannot fit the market’s tastes. As an alternative, doing a market test can help you to create things that your market really needs.

Mistake 5: Doing all yourself

Are you thinking of doing all your business by yourself? Even a pro may need others to make it work. Having a banker, attorney and accountant that can help you to build such strong business foundation is a good idea. Plus, they will assist you to avoid any mistake that may cost you more than you need to as you work with your business.

Mistake 6: Ignoring intellectual property

To avoid any problem in the future, taking intellectual property into account is significant. Intellectual property will protect any intangible in your business such as trade secret, copyright, trademark and more. When you ignore this thing, others may copy your business easily. Then, if ignore other’s IP, they will sue you for their protected property.

Read: College Student, Here Are 5 Super Startup Ideas for You

Now, you have learned some of the most common mistakes when starting a small business. Even though you are going to build a small business, it doesn’t mean that you are not all prepared. So, don’t forget to avoid those mistakes to build a beneficial small business.

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