One of the most thrilling and inspiring things that you can do is to launch a new business. The adrenaline and emotion sparked is incomparable. The thought of becoming the new business sensation fills your head and propels you to put in the time and energy to try and reach your business dreams.
There are so many things that must be done correctly in order for your business to make it. It is well known that more than 85% of all businesses started fail in the first 18 months. This is typically because of the business being a bad idea, lack of needed funding or structural things that were not done to set up the business for long term success. Here is a list of a few of these things that are mistakes to avoid when setting up your new business.
Selecting the Wrong Business Structure
When you form your business you need to set up a legal business structure that gets registered in the state where your business is located. Each state has different laws for who is required and how to go about setting up your business but there are nationally recognized structures that work in every state. In terms of for-profit companies, hey include: a sole proprietorship, a Limited Liability Company (LLC), an S Corporation and a C Corporation.
Each has its own distinct attributes that fit or do not fit with the business idea and plans you have. For many an LLC is the best option. It is often the least costly to set u and can offer great flexibility to new business owners. You also need to know how to get a federal tax id number so you can register your business with the internal revenue service. This number can be obtained online no matter what state you plan to set up your business.
You will hav the inclination to work every available minumt on your business and this is understandable. But you need to take time off so you can rest and recharge. This will allow you to see things with fresh eyes and to make better decisions. Many new business owners get mental burnout or physically ill from overworking themselves and as a result what they are triying so desperately to avoid which is their business suffering is exactly what happens. So take some time off, do something with the family or friends and away from the business no matter how busy you are and you will find yourself more productive and making better decsions.
Doing Everything Alone
If you can afford it, you should hire at least one person to work with you at your new business. If you cannot afford a full time person hire someone part time. It is invaluable to have someone to bounce ideas off and to have for a second opinion. Too often owners try and play every role and fail at the ones that they ar no good at, so having someone around who can compliment your skills and tak on the jobs you are lousy at is a good decision. If you absolutely cannot afford to hire someone, then find a mentor that will give you good honest advice about your business decisions. Pay this person when you can and take the persons advice and it will pay off for you.