Creating a start-up is not for the weak-minded. It takes hard work and considerable intelligence. However, despite all your research and knowledge, your new endeavor may still run into issues.
The business of entrepreneurship and start-ups is complex and there are many factors that go into it. Here are two major problems start-ups face and how you can potentially avoid them:
Creating weak contracts
Having an ineffective contract can be a huge pitfall for a startup. Chances are you will have to create and sign many different contracts in the process of starting your business, so you will want to be sure they are handled correctly and professionally. Employment, partnerships and other agreements will need contracts that effectively accomplish what they should.
You may want to consult an attorney when creating these contracts so you can make sure everything is legally sound and in good form.
Failing to consider all the parts
As mentioned before, there are many working parts that make up a successful business. If you fail to consider any of these elements, it could mean the end of your startup before it begins.
Here are a few other components of a business you will need to account for:
- Securities laws for stock
- Employment documents -- Stock Options, employee handbooks, I-9 and W-4 forms, benefits forms, nondisclosure agreements, non-compete agreements, etc.
- Intellectual property protection -- service marks, trademarks, copyrights, patents etc.
- Tax issues
- Naming your company
These are just a few of many components and potential mistakes that go into business planning and startup execution. Creating your startup likely took a lot of hard work, time and effort so you do not want to throw it all away due to a simple legal mistake. Being careful and cautious can help your new business immeasurably.