Seeing your small business ideas develop into a functioning enterprise can be a dream come true. Once your operation is up and running, you will want to do everything possible to help support its sustainability and growth.
One of the best ways to protect your enterprise is by knowing what not to do. Here are some common mistakes small business owners make and how to avoid them:
1. Trying to Do Everything Yourself
Operating a small business can mean having to wear lots of hats. In addition to running your operation, you may also be negotiating and reviewing contracts, managing employees, taking on human resources tasks, making merchandising and advertising decisions, and completing other necessary jobs.
Being hands-on can be a great way to support your small business. However, it’s important to recognize when you need to enlist the help of other professionals to help ensure your business is fully supported. For instance, you will want to work with an experienced small business lawyer when developing contracts and other legal instruments.
2. Only Thinking in the Short-Term
Running a small business can be very involved, and new owners often have little time to consider the future. However, there are steps that a small business owner can take now to help their enterprise thrive and grow. These may include doing things such as choosing the right location and making sure your real estate lease terms allow for expansion. You should also carefully consider your business formation options and choose a structure that will meet your immediate and future needs. A business law attorney can help you identify ways you can help plan for your enterprise today and in the future.
3. Not Using a Contract
Small and large businesses usually require multiple contracts. These essential legal documents can help the parties identify key terms, conduct important transactions, and protect their interests. Even if you feel you know the other party to be reputable, relying on a handshake can be a risky and costly mistake. Contracts create a way for the parties to clarify their roles, responsibilities, and expectations. When properly drafted, these agreements can protect your small business and help support its operational needs.
4. Underestimating the Importance of Insurance
Small business ownership often comes with some liability exposure, and you don’t want to make the mistake of underinsuring your small business. Having the right insurance is a vital part of protecting your interests, and you will want to ensure that you and your business have the coverage needed.
5. Not Keeping Accurate Pay Records
Your business is legally required to maintain certain pay documentation. Therefore, you also want to keep accurate and clear payroll and accounting records. Small business owners sometimes neglect to maintain this important documentation. You don’t want to make this common mistake. You will want to be certain you know what is mandated and that you are complying with applicable laws.
These are just some of the common mistakes small business owners can make. The best way to help avoid these and other costly mistakes is by working with an experienced small business attorney. Your small business lawyer can help you assess your entity, identify the appropriate measures to have in place for its protection, negotiate and create valid contracts and other legal documents, and ensure your small business complies with applicable laws.
Contact an Experienced Florida Business Lawyer
Attorney Richard Sierra at the Florida Small Business Center assists clients like you with commercial leasing, business, and litigation matters. As always, Our Goal Is to Help You Succeed™. For an appointment, you may call us at 1-866-842-5202 or use the contact form on our website. We represent clients throughout the State of Florida, including Coral Springs, Coconut Creek, Boca Raton, Delray Beach, Pompano Beach, Sunrise, Fort Lauderdale, Miami, West Palm Beach, Jupiter, Deerfield Beach, Stuart, Port St. Lucie, Orlando, Naples, Fort Myers, Sarasota, Tampa, and surrounding communities.