Starting out your own venture can be energizing and, ideally, truly gainful. Not setting aside the opportunity to investigate and plan for the unforeseen, be that as it may, could cost you a package not far off in lawful charges, missed deals or bad publicity. Before you participate in your first business exchange, make sure you’re not in danger for any of these exorbitant amateur oversights.
Another aspect: rough economic circumstances
Starting a small business is hard work, and in a tough economy, it can be even harder. This is partly because when credit markets are tight, it can be tough to get financing. That’s why it’s crucial for small business owners to hone their business plans.
Not Registering Your Business
Since every state and local jurisdiction is different in what kind of businesses are required to have a business registration, your best bet for getting this one right is to check directly with the government agency that handles it in your area. The requirements can range from needing to register for any kind of business to simply needing one if you hire employees, lease tangible personal property, or charge sales tax. Not abiding by local and state ordinances can subject you to heavy fines, legal action or your business being shut down until it has met the requirements.
Not Informing Your Day Job
Moonlighting, or the practice of starting out on your own while still working for your employer, is a popular and more increasingly acceptable practice for many professionals.
Not Using a Unique Business Name
Thought you could get by with using a business name that is similar to a competitor’s? Think again. Copyright and trademark laws are vague at times, but one thing should be very clear when choosing a business name for your new endeavor: your business should not be named so that it causes confusion to customers as to what business they are buying from.
Not Being Insured
Depending on the exact nature of your business, your insurance needs will vary. To avoid the possibility of litigation bankrupting you, however, it is always best to look into the types of insurance that leaders in your field recommend. Some types of insurance will be unnecessary to purchase and depend more on the size and scope of your business than the niche.