If you have spent time in bars, you have probably heard someone tell how they could have been rich by now, if only things were different. They proceed to explain how they had this great idea for a business that never came to fruition. Now they sit here at the bar, watching as Bezos, Zuckerberg or another big name gets rich doing what they had planned to do.
Having an idea for a business is one thing. Making that dream a reality is another. There is so much to consider that it can seem overwhelming. Here are some common errors people make when setting up a business.
- Failing to research: You may make the best mojitos in the world, but if you set up your cocktail bar in an area where drinking anything other than beer is frowned upon as unmanly, you are wasting your time. You also need to do a different kind of research to ensure than you are not infringing on other people’s intellectual property.
- Failing to understand the laws: There is a host of rules you need to comply with. You may require special licenses to operate; you need to abide by employment laws, environmental laws and financial regulations. You cannot play the game if you do not understand the rules.
- Failing to define your business relationships: Clear contracts are essential, whoever you are dealing with, be it customers, suppliers, employees or your business partners.
- Failing to choose the correct legal entity: How you register your company can affect the tax payable and your liability if things go wrong.
- Failing to protect your business: Protect your intellectual property through trademarks, patents and other legal mechanisms. You could use non-competes or nondisclosure agreements to protect sensitive information from your competition. Make sure you have adequate insurance in case of problems.
An experienced Sioux Falls business attorney can be a crucial ally throughout the life of your business.