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Don’t make these mistakes when starting your business

by | Jan 27, 2017 | Business Formation & Planning

Entrepreneurs have a lot to consider when they launch new businesses, which is why we always recommend reaching out to professionals to help with legal and financial matters. Once you’ve dotted the Is on any incorporation or formation documents and crossed all the Ts on your financial plans, though, you aren’t completely out of the water. As you start and grow your business, you’ll always run into areas where you can make errors, and taking a proactive approach and thinking your way carefully through your plans can help you avoid such errors.

One area where many entrepreneurs express regrets is in hiring. It’s tempting to hire the people you know — even the people who are related to you. Those people might be right for the job, but you do need to base hiring decisions on experience and capability instead of friendship and blood relations. Don’t make the mistake of hiring purely on a technical basis, though. Remember that your people have to fit together as a team, so balance technical capabilities with cultural fit.

Pricing is a serious matter for any business owner. The right prices make or break your company in so many ways. Price too high and you drive off your customers; price too low and you can’t sustain your business model. Take time to really research your market and understand everything that goes into your product so you can create the right pricing strategy.

Finally, don’t be afraid to put your resources into strong contracts. Poorly crafted contracts derail many business owners after deals are signed, and if you don’t have a legal way out or legal protections build in, you can lose a lot of money and even your brand. By working with an experienced business law attorney on your business formation and contract creation, you can create protections for you and your business.

Source: Entrepreneur, “6 Common Mistakes People Make When Starting a Business,” Lorie A. Parch, accessed Jan. 27, 2017

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