If you plan to start a new business, it’s important that you make the right decisions at the beginning of the process so you don’t have trouble later on.

In this blog webbROI explains that avoiding common mistakes when forming and while operating the business will save you time, money, and a variety of potential legal issues.

Avoid These Mistakes When Starting a Business

Some of the most frequent mistakes small business owners make, happen right when they form their businesses. Some owners choose the wrong type of business entity for the business they want to run, often filing it in the wrong categories, or even choosing the wrong type of business classification altogether.

Typically, the average small business owner will have an LLC, but they may also create a partnership or S corporation.

Mistake 1: Legal Ramifications

New business owners may fail to assess all of the legal ramifications involved in starting a business, and, as CFI notes, many unwittingly break the law or fail to take advantage of all their options.

Consulting a business lawyer about your new business is the best way to make sure that you’re following all of the laws involved in your industry and that the business structure you’ve chosen is the best one for your purposes.

Mistake 2: Not Tracking Deadlines and Milestones

There are several pitfalls of not keeping track of tasks and deadlines, including missed opportunities to meet contract timelines and late billing. Using a monthly online calendar for planning is a great resource for providing a 30-day view of task lists that need to be addressed.

Look for a template that can be customized with graphics, videos, and sticky notes, making it a perfect tool for keeping tasks and deadlines top of mind.

Mistake 3: Not Sorting Out Finances

Financial planning is a crucial part of starting any successful business and thorough planning is a must in order to successfully keep tabs on all of your operations and monitor progress.

SmartAsset points out that consulting an accountant or business financial advisor is a smart move when forming your business entity, and you’ll want to follow a strict business and financial plan to keep your goals on track, avoid wasting money and remain in compliance with the IRS.

Mistake 4: Not Treating Marketing as Crucial

It will be difficult to grow your business if no one knows about it. Formulate an effective marketing plan and invest resources into advertising to attract more customers.

This includes enlisting the expertise of Digital Marketing professionals like webbROI for services such as SEO marketing, social media management, product and business branding, paid search advertising, and local business marketing.

Mistake 5: Not Choosing People You Can Trust

Finding the right employees requires screening their backgrounds, assessing their qualifications, and ensuring that their personalities and objectives align with your goals and the culture at your business.

It can be tempting to hire your friends and family when starting out, but those people are often not the best options for employees.

You have to make sure that anyone you hire truly has the necessary skills and fully respects you as the owner and manager.

Mistake 6: Not Learning Continuously

Often, new business owners make a variety of mistakes simply due to a lack of knowledge. In many cases, it can be a wise decision to return to school or take online classes to keep your business operating while you work toward an advanced degree.

A degree in business operation, entrepreneurship, or other in-depth degrees can help you gain a more thorough understanding of your industry and provide the knowledge you need to set up and scale your business effectively.

Things to Remember

No matter what kind of business you decide to start, make sure you’ve done your due diligence for the place you are and the industry that you’re participating in.

Consider all of your options, expand your knowledge and be sure to hire the right people and work with competent advisors.

About the Author

Tina Martin started her career in business administration but eventually decided to pursue something that actually inspired her: becoming a personal fitness instructor. She is working on her first book, Ideaspired: Put Your Ideas, Your Inspiration, and Yourself First to Make Your Dreams Come True. She also started ideaspired.com as a side project to reach as many people as possible, and encourage them to put their dreams first.