According to several studies, at least 20% of start-up businesses end up filing bankruptcy during the first two years of being active. Then, almost half of all the establishments don't get past the 5th year mark. So, what exactly are the secrets to launching a successful business?
From failing to comply the requirements such as business licenses, permits, and regulations, here is a list of small business mistakes and failures that entrepreneurs must avoid.
1. Avoid messing up with Intellectual Property.
There's a significant reason in deciding the name that represents your business. Thoroughly researching the name isn't something to be taken lightly. That's why it would be smart to invest in an intellectual property lawyer. Their services help protect you from the expensive mistake of unauthorized use of copyright or trademark owned by someone else.
In addition. familiarizing yourself with the trademark laws at a local, national, and international level is absolutely crucial. It's better to opt for this than be sued. Even if this seems tedious and expensive to consider.
Photo by Gabrielle Henderson on unsplash.com
2. Don't forget to check which business documents you need to operate.
The success of any business starts with how compliant you are with the rules and regulations to operate and register your business. These don’t limit to the basic licenses but also include fire permits, building permits, manufacturing permits, health, and safety-related permits, and many other things.
Basically, there are certain permits and licenses that only exist depending on the nature of your business.
3. Do not neglect the power of correct legal documentation.
A startup company that complies with the requisite documentation is of the utmost priority. Exerting more time and effort at the early stages of working all the paperwork stands you well.
You might want to ask the appropriate government institutions to look into the requisite legal documentation that you need to work on.
4. Failure to comply with the relevant local laws.
It's a common protocol for a business to observe and comply with relevant laws at the different levels of the government. In order to identify which one should you adhere to, look at the state, structure, type of business, and industry. This helps you determine what legal documents to process.
Remaining ignorant and preventing oneself to educate the law is such an unreasonable decision. Failure to be compliant will lead you to violations and a lot of fines to pay. That is why proper care must be taken into consideration, along with thorough research to keep you from bad karma.
Photo by Leon on unsplash.com
5.Stop trying to do everything by yourself.
You may be the owner, but in order for a business to succeed, you have to accept the fact that a collaborative effort makes that possible. Don't think that you are all alone in running the business. Look and onboard trustworthy and experienced advisors to guide you in creating a business idea, strategy, and facing challenges.
Both wisdom and power play an important role in giving you a great support system. With this, it allows you to be trap in pitfalls and improve instead.
6. Don't underestimate your service or product.
The business exists for a reason and is worthy to provide solutions to the needs present in the community. This main reason is enough to have a price worthy of what it can offer.
Although, most of the entrepreneurs conduct giveaways or donate to a charity, visibility, or community. This is to create a close relationship and be introduced to the target audience. However, be careful in doing this as to not be known as a company that only offers freebies. Make that cash register be full of paper bills first!
