All too often, especially when money is plentiful, many new business owners make careless errors as they rush to prove that their new companies will soon dominate the marketplace. Graduate schools of business often use profiles of these failed businesses to teach their students how to try and avoid some of the pitfalls often hidden in the outside world.

            Here’s a look at some of the most common mistakes you and the other members of your company or partnership are likely to make. Be sure to make mental notes about all of them so you can survive the critical start-up period.

Poor Decisions That Often Derail Many New Businesses

  • Spending your initial funds too quickly. While you may think it's a good idea to build up your inventory right away, try to avoid spending too much in this one area – as it can leave you fully unprepared to address other early needs;

  • Choosing inappropriate office space. Your first clients will be far more impressed by whether or not your products are better than those of your competitors than whether or not your office offers a prestigious view of the city;

  • Initially hiring too few – or too many employees. It's usually best to start out with a skeleton crew – as long as you take the time to discuss your upcoming personnel needs with at least one or two “temp” and permanent employment placement professionals. You can be sure they'll eagerly send over their “top” candidates if you'll just provide them with advance notice of your future potential needs;

  • Borrowing money you really don't need yet. Since you'll want to keep your monthly expenses as low as possible when starting out, avoid borrowing more money than you really need during the early stages;

  • Assuming you and the other members of your firm can easily “fly by the seat of your pants.” You should definitely take the time to create a comprehensive business plan;

  • Failing to obtain proper insurance policies. You must protect yourself and your business in every reasonable way possible;

  • Hiring the wrong accountant or accounting firm. Be sure to hire an individual or group that has a strong reputation for accurately billing clients and timely collecting all that’s due. Also, make sure all records are kept straight and all taxes and bills are paid on time. And be sure your employees and others are always paid as promised;

  • Failing to thoroughly discuss with your firm’s other members which type of business structure best suits your needs. Give serious thought to scheduling a meeting with your Peachtree City business attorney – this will allow him to clearly explain the “pros and cons” of each business structure to all of the owners/members of your firm.

To obtain help with handling all of your Georgia business planning needs, please contact Shane Smith Law today.  You can schedule your free initial consultation with a knowledgeable Peachtree City estate planning attorney by calling: (770) 487-8999.

Shane Smith
Connect with me
Advocate for the Seriously Injured

In Pain? Call Shane!

Before you sign any documents, we urge you to contact our legal team using this short form. We will be in touch within 24 hours to discuss your case.