It is important as a budding entrepreneur and business owner to not make the obvious mistakes when starting up a business. These mistakes can be big or small and can sometimes cause a huge blow for your company. Even though it is natural to face some challenges as a new business owner, it is actually better to eradicate any potential problems before you have to face them.
In this article, we have pointed out a few things that you should avoid when starting a business, so that you can have a clear and easy process ahead of you.
Having the same name
Sometimes coming up with a business name may be the best thing ever and you as a business owner may find it unique. But what happens if that business name already exists or sounds too similar to an existing business?
If a business owner registers for an LLC for example and has not checked if the name is already taken, the application will be rejected and the business owner will have to pay more costs by applying all over again. Regardless of the state that you’re registering in, they will not allow a business to function under the same name of an existing business.
In order to avoid this, the best thing to do is take advantage of the free tools online such as the business name generator, which can help brainstorm name ideas for the business and even show availability for domain names. Another thing to avoid is any clashes in the near future that you may have online, because the domain name that you originally wanted is taken by another company. That is why it’s important to obtain the domain name as soon as you can, so you can avoid this obstacle too.
Using the same bank account
As a potential LLC or corporation company, it is highly advised to avoid the mistake of having both your professional and personal assets under the same bank account. The reason for this is because if your company is the type that has a high profit, it can also be the type that can face potential lawsuits.
If the company doesn’t win the case in court, they will lose all of the personal and professional assets, which is a highly problematic situation. In order to avoid this, it is necessary to open up a new bank account and have a credit card for your business; so that there is a healthy finance stability and records.
Rushing the business plan
While it may seem like you are closer to your dreams as a business owner, it is important to not rush important steps such as making a real business plan. By having a business idea that you want to come to life isn’t enough to fuel the success that your business will bring.
You need to avoid the potential failure of a business, by planning accordingly and taking important factors into consideration. Will your business be a service or sell physical products? Do you need to register for a Sales Tax, licenses or permits? Who is your exact target audience? How will your market and sell your business?
In order to understand how to run a business successfully, you can find out more online with available guides and step by step processes. There may be a lot of paperwork and steps to set up your business, but in the long run it is only beneficial for the company to do it properly. You have to list out questions that you have as a business owner and research the answers by looking at guides online that are suited to your needs. Some states for example may be exempt from Sales Taxes, some services may be exempt from taxes in general and will your business idea be unique enough to stand out against competition?
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