3 MISTAKES THAT COULD MAKE BUSINESS FORMATION MORE DIFFICULT

Creating a startup company can be a long and difficult journey. Challenges will certainly present themselves to you, and while you may have the ability to deal with many of those difficulties, you could potentially also end up making the situation harder on yourself. Though you may not mean to do so, actions you may think are beneficial could actually end up hurting your company.

Of course, you should not let the fear of challenges and mistakes hold you back. If you do not try to form and operate your business, you may never know whether it could succeed. Luckily, you could help yourself and your company by remaining on the lookout for common startup mistakes.

Overspending

Once you seriously decide to move forward with starting your company, you may feel excited and motivated. These feelings can be beneficial as they drive you to make decisions and keep the ball rolling. However, these feelings could also have you focusing on the wrong tasks at the wrong time. For instance, you may think that finding furniture and decorations for your offices or place of business will be fun and exciting, and while it may very well be, it may not need attention right away.

You should certainly take the time to purchase any supplies needed to help your company operate, but if some unnecessary costs can be avoided, you may help yourself in the long run. Once your company starts turning a consistent profit, you could have the chance of upgrading and purchasing items for purely aesthetic purposes.

Not thinking about marketing

Marketing can play a considerable role in how well a business succeeds. After all, if consumers do not know that your company is out there, they cannot purchase your services or products. You may initially think that you could generate enough business through word of mouth, but this type of approach can prove far less reaching than a strong marketing strategy could.

Not having help

Though you may view your business as your baby, you likely cannot do everything alone. Rather than putting too much pressure on yourself and setting yourself up for potential mistakes that could prove costly, you may want to consider enlisting help. Individuals who are proficient in marketing, business and law could help you ensure that you meet necessary requirements and bolster your company's chances of success.

In particular, if you do not operate by the letter of the law, you could face serious consequences. Therefore, you may want to ensure that you understand what steps you need to take to legally form your business and keep it running in accordance with laws and regulations.

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On behalf of J. Kelly Kennedy, Attorney/CPA, PLLC, which has been acquired by Rignanese & Associates, PLLC.