Starting a new small business in San Diego is never easy. It requires a ton of hard work and dedication. However, if you wish to ensure that your new company continues to be successful for many years to come, you will also need to avoid making costly errors.
A brief list of some of the worst mistakes you can make in your first year in business would include:
Failing to Create a Business Plan
In the early days of a new business, it can be easy to focus on the tasks that you need to accomplish in the short-term. However, if you want your company to be successful long into the future, you also need to spend some time planning for the long-term.
The best way to do this is to put together a well-crafted business plan. Such a plan will give your company direction and can also be used to help you secure funding as needed.
Entering into Ill-Advised Contracts
The contracts that you enter into during your first year in business have the potential to impact your company for decades. Making smart, strategic agreements can set you up for success – but entering into ill-advised contracts can severely impact both the operational and financial sides of your organization.
It is usually smart to have an experienced California startup lawyer review all contracts before you sign them. Your attorney can then let you know if you should walk away or make changes to the agreement before moving forward.
Hiring the Wrong Employees
When your new business starts to gain traction, you will most likely need to hire some employees to handle the workload. However, even if you are desperate for help, you should avoid rushing the hiring process. Hiring the wrong employees can derail your company’s plans and can even lead to legal problems.
The smartest way to find excellent employees is to ask for recommendations from your partners, colleagues, or existing workers. Of course, before you agree to take them on, it is always wise to carry out a background check of your own – just to be safe.
Failing to Register a Trademark
When you start a new business, you would be well-advised to register a trademark to protect your company name. If you fail to do so, there is a chance that another party could swoop in and steal your brand identity.
A knowledgeable business attorney in San Diego can walk you through the steps you must take to register a trademark. Generally speaking, you can expect the entire process to take around 12 months, including the time to file and obtain a mark with the USPTO.
In the world of business, cash is king. If you run out of money, your new company will struggle to pay its employees, vendors, and creditors. Before long, you will most likely need to close your doors.
This nightmare scenario can be avoided by sitting down with an accountant and putting together a budget for the year. Once your financial plan has been laid out, you just need to stick to it. By avoiding overspending in your first year, you can provide your company with a solid financial foundation it needs to prosper in the future.
Your Trusted Small Business Attorney in San Diego
The team here at the Semanchik Law Group has been helping local businesses grow and thrive for years. If you need a California startup lawyer to help keep your new company moving in the right direction, please do not hesitate to give us a call at (619) 535-1811.