Below is just a short list of some of the most common (and easily avoidable) mistakes that entrepreneurs make when starting or taking over a business. By no means is this an exhaustive list. Rather, it is a starting point for you and your team as you consider next steps.
- Jumping into a business without thinking things through completely.
- Starting, buying, operating or selling a business without legal and tax counsel.
- Not having enough money to make it work.
- Relying upon co-workers, friends or an accountant for legal advice.
- Operating as a sole proprietor or partnership.
- Thinking that planning is only for “large” businesses.
- Not planning for succession in the event of illness, retirement or death.
- Ignoring corporate formalities, such as Minutes, Elections, and Shareholder meetings.
- Using “standard” forms and contracts from office supply stores, online or off-the-shelf software programs.
- Doing things a certain way because that is the way that they have always been done without considering better, more efficient alternatives.
(This article is a public resource of general information. The reader should not rely upon information provided herein, and should always obtain counsel from a qualified attorney.)