Top 5 Mistakes When Starting a Business

On the Internet you can find many cases of how someone launched a successful business and got rich without much effort. But in reality everything is not so simple. Entrepreneurs, especially those with little experience, often face challenges.  Before starting a business, you need to be prepared for the fact that problems will arise with the tax authorities. You will encounter an unreliable counterparty, disrupt the deal, or owe money. Just like in kaszinó online, thorough preparation and careful analysis are key to avoiding pitfalls and ensuring long-term success.

Mistake #1: Do Not Conduct Commercial Intelligence Before Starting a Business

For a business to be successful, it is not enough to simply come up with an idea and implement it. First you need to check whether it is in demand among consumers, what kind of revenue such a business brings to other companies, and in which regions it is more in demand.

Commercial intelligence allows you to answer questions. The process of collecting legal information about the business area in which you plan to work. You can conduct commercial exploration either independently or by hiring specialists.

At the same time, if you decide to hire people from outside, keep in mind that they are not interested in the success of your business and may not know the various features of your field. Therefore, we still recommend conducting reconnaissance on your own.

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The simplest thing is to study information on the Internet. see how many companies operate in this industry or on the site where you are going to enter. Study user search queries and market dynamics. Read expert articles related to future business. It will also be useful:

Mistake #2: Forgetting About Competitive Analysis

Unlike commercial intelligence, competitive analysis involves collecting and assessing information specifically about competitors, and not about the business area as a whole. Competitive analysis helps to understand what market volume competitors occupy, what advantages and problems they have, and at what price they offer their goods and services.

Mistake #3: They Don’t Think About Legal Registration

Downloading contract templates from the Internet is a bad idea. Public templates will never take into account your specifics and the various nuances that exist specifically in your field. For example, noise level or accessibility for people with disabilities.

Often, the use of other people’s templates led to the fact that the company could not prove its case in court. But also to an unintentional violation of the rights of its partners. It is better to use the services of a lawyer once and create one or several standard agreements. And then use them with minor changes.

In addition, the legal formalization of various rights and relations with employees cannot be neglected. Rights include, for example, design objects, know-how, specifications and recipes. And the rules include working with confidential information and personal data. They also include a copyright clause in the employment contract.

Mistake #4: Neglecting Intellectual Property

Few people know that when a company is registered with the Federal Tax Service, its name becomes a means of individualization. And it has exclusive rights in relation to the type of activity for which it was registered.

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There is one exception – if exactly the same company has not been registered by someone else before. In this case, you may be forced by a court decision to change the name. And at the same time the sign, website, logo, and possibly even cancel the trademark.

Before actively using any brand, name, sign, take the time to check if someone else is using it. Even if you came up with all the creatives yourself. This way you can avoid disputes that could ruin your business at the start.

Mistake #5: Taking Partners at Their Word and Not Checking Their Counterparties

Even if your counterparty is a relative, friend, acquaintance or just a good person, this does not guarantee that conflicts will not arise in your working relationship.

Neglecting to check the counterparty is a global mistake. This is one of the most important stages of cooperation. In appearance, a company may look reliable. It has a beautiful office, stylish social networks and website, and happy employees in photographs. However, in reality, she is drowning in debt and endless lawsuits with other partners.

To independently check, it will be enough to review the company’s arbitration cases. You’ll need to analyze the financial statements for different years. Then, find out whether the counterparty has enforcement proceedings, or is in the process of bankruptcy or liquidation. This information can be obtained on the websites of government departments.

You can check your partners for reliability using both open sources and special services. For example, such as Contour.Focus. The service collects all the important information about the company in a card and analyzes it; all you have to do is study the collected information.

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