Starting a new business is always an exciting but frustrating time. With so much to do in the run-up to the launch, a few things are bound to be forgotten along the way. However, you can’t take any chances. When it comes to your business, every aspect needs to be covered. Here’s our guide to some of the common oversights made by new business owners so you can hopefully avoid these mistakes too.
Choosing the Wrong Business Structure
When registering your business, there are a number of different structures you can choose from. Selecting the wrong one at the beginning may set you up for a headache later on when you try to change structures.
Think about your business and the needs that will arise. Will you work better as a sole trader, a private limited company, or a limited liability partnership? Each one has its own advantages and disadvantages and you must know which will suit you best.
Trying to Do Everything Yourself
Money can be tight when starting a new business but there are some costs you need to cover. Unless you are a complete expert, you should always hire a lawyer and an accountant you trust, so they can help with some of the legal and financial requirements of a business, while you focus on bringing the day-to-day running up to speed.
This can even be applied to providing the capital for starting your business. While many businesses are started with investments from personal savings, the costs of a business soon add up. Don’t think of it as a failure if you find yourself needing to take out a business loan. You would be surprised by how many companies use them. Search for a reputable loan broker who can give you the assets you require.
Setting out with inadequate insurance cover
Business insurance isn’t one big package like car insurance. There are many different policies; some of which will be relevant to your business and some of which will not. The type of business insurance you need will need to reflect the vulnerabilities of your business.
Some commercial policies are expected by organisations and clients, others are compulsory. It is important to know that within a business insurance package, such as those offered to SMEs by Hiscox, employers liability insurance is a legal requirement for all business owners as soon as they have a single employee. However, public liability insurance may never be applicable to you and so you will never need to take out this particular policy.
Each policy covers a different area of business and you need to ensure you are covered against all eventualities. Find an independent business insurance specialist and work with them to make sure you are taking out the correct insurance for you.
Neglecting Your Intellectual Property
You need to start registering for copyrights and trademarks from the outset. Failure to do so can cause your brand to lose recognition amongst competitors and can even result in the competition using your ideas and concepts in their campaigns. Don’t make the mistake of sharing something that has not been first copyrighted or trademarked; you don’t want to get sued for infringement if someone else slaps a copyright on it.