The time you start a business could be one of the busiest of your whole life. There is so much involved in getting a new business off the ground, and you may also have family commitments to attend to and a job elsewhere to support yourself in the meantime.
It is easy to overlook things or make errors which could prove troublesome down the line. Here are some to watch out for:
1. Using the wrong business structure
What seems like the easiest or cheapest business structure now might not be in the long run. Opting to form a limited liability company or a corporation will involve extra paperwork and fees but can offer significant long-term benefits over sole proprietorships or general partnerships.
2. Failing to document your relationship with partners or investors
However great your friendship is, you should clearly document your business relationship, noting the role each person will play and what will happen if the relationship breaks down. Just think about how many great bands have started out close, only to fall out and end up in legal disputes over money or rights. You cannot bank on your business partnerships enduring.
3. Failing to do adequate research
Start-up culture might have you thinking you can just come up with an idea, find some funding and start rolling. There are various legal technicalities you need to take care of first. Infringing on someone’s intellectual property or going ahead without the necessary permits could bring your business to a halt before you know it.
Seeking legal advice from the outset can reduce the chance of mistakes and increase the chance your venture succeeds.