When you’re starting a new business, there’s no better feeling than making your first sale and watching the money start coming in. However, before you launch your product or service, it’s vital to protect yourself from certain risks – which can turn off potential customers and do serious damage to the bottom line of any young business. Here are three common mistakes entrepreneurs make when launching their businesses – and what they should do instead.
When starting out your business, this may seem unimportant or unnoticeable – but that one promotion could come back to haunt you down the road. Offering any premium that’s regulated by law will expose a company to penalties and damages if prosecuted. This includes free products or services, cash, gifts with purchase, trips, and coupon books.
Hiring an independent contractor to help you get your business off the ground is a smart move – especially if that person can provide specialized skills or give your company credibility. However, that approach will fail from the start if you don’t have a written contract in place before starting work. In some places, it’s mandatory to have a full agreement in place that outlines rights and expectations before beginning their service as well as throughout their service for your company. Failure to do so could leave both parties open to serious risks and penalties, which would be tough to recoup on a new business.
When starting a new business, you’ll likely have to enter into a multitude of contracts – including landlord agreements, software licensing contracts, and supplier terms. While it’s important to read all these agreements carefully, it’s equally as important to seek legal advice before signing anything. Otherwise, the contract could come back to haunt you down the road if there are hidden or unforeseen risks that weren’t outlined in the agreement.
For more help developing or protecting your business, consulting with an established firm like Gandhi Selim Law is certainly recommended. Not only will we be able to assist with everything from structuring and incorporation, but we can also take care of any necessary contracts and negotiate favorable deals