The first year of your new business is critical to its ongoing success. If you consistently make perceptive decisions during the first 12 months, your new company will be set up for success. However, if you make some serious mistakes during that time, your business may not make it into its second year. A short sampling of some of the worst mistakes you can make in the first year of your new business would include:
Failing to Register Your Trademark
In the first year of your business, you will work hard to build a brand that your customers can trust. Consequently, if you decide not to register a trademark for your company name, there is a chance that another person or business may swoop in and begin profiting from your hard work. This situation can be avoided by having an experienced attorney file a simple trademark registration on your behalf. The entire process should take no longer than a few months.
Spending Too Much Money
If your new business runs out of money, you may need to close up shop. If you would prefer to avoid having to wind up your company during your first year, you would be wise to set a strict budget and stick to it. If you successfully manage your company finances during your first 12 months, you will have a solid foundation to continue being successful long into the future.
Entering into Bad Contracts
During your first year in business, you should be particularly careful about the contracts that you enter into. If you sign a bad deal, it could negatively impact your company for years or even decades. If you have any doubts about an agreement, you should always have your business lawyer take a look at it before you sign on the dotted line.
Getting through your first year in business without making any mistakes can be tough and is inevitable. However, by reviewing the information above, you will be well-prepared to spot any potential pitfalls on the horizon and take steps to avoid them.