It can be easy to rush headlong into a new business idea carried along on a wave of enthusiasm. While that initial energy is essential to getting your project off the ground, you also need a dose of caution.
Spark and drive can only get you so far in business. To ensure your business lasts, you will need to spend time on what you might consider more tedious tasks.
Time spent forming a business will pay dividends later
The better the foundations, the more likely your business is to last. Here are some common mistakes people make when starting a company:
- Infringing others’ intellectual rights: It is crucial to carry out thorough checks before starting your business. If you do not find out someone else has protected an idea or name until a few months down the line, you will waste time, effort and money. Depending on your expansion plans, you may need to search internationally too.
- Failing to protect your intellectual property: You might be unsure if your idea will succeed. Yet if you do not protect it, an opportunist may come along, see the potential and copy it. If they have more funds or experience, they could soon surpass you.
- Assuming you will always agree with your partners: You and your co-founders may get along great, yet your differences will become apparent with time. A well-written partnership agreement sets the ground rules for your working relationship. Ensure it specifies the terms for ending the partnership, as trying to agree on exit terms when one of you wants out will be much more challenging.
Many people view business as a world of ideas, hard work and seizing your opportunity. Yet underpinning all this are a complex set of laws dictating what you can and cannot do. If you ignore them, they can soon trip you up, but if you embrace them, they can protect your company and help you flourish.