5 Things to Know Before Starting Your New Business

5 Things to Know Before Starting Your New Business

Starting a new business is an exciting, rewarding time.  But it can be challenging as well.  Darrell Cartwright, an attorney with RichardsonClement PC warns it’s not enough for a business owner to be confident in their abilities, services, and product.

Here are 5 things you should know before you begin:

Protect Your Brand

The first thing a business owner should do is trademark their brand. Cartwright says, “Don’t put your new business at risk. Don’t assume your new business name is not trademarked just because you weren’t successful in finding it.”   He says sometimes businesses have failed and the trademark was never used but it existed.  A business owner should always protect their company’s name.

Form Your Team of Professionals

A team of professionals will help a new business owner understand the law, the legal structure, taxes, and other issues that impact a new business.  “Have the wrong legal structure,” Cartwright says,  “you could be personally liable for an obligation of the business or pay up to double the amount of tax you should.”  He also advises business owners to be sure they have the right type of insurance so they are covered.  Other considerations include whether working capital is needed besides an old 401(k) or credit cards.  Cartwright says a business owner’s banker, attorney, CPA, and insurance professional should be teammates in helping to navigate these choppy waters.

Have a Business Plan, and Use It

A new business owner should begin with a plan of action and implement it.  This includes knowing the company’s marketing strategy in advance— how will the company target its customers and clients? What are the short-term and long-term forecasts? Cartwright advises, “Don’t forget the exit strategy as well—now that you’ve started the business, and hope it is successful, how and why do you get out? Will the successors be family members or your children? The public or a business partner?”

Know Your Worth

Cartwright says it’s extremely important to charge a fair price for your products and services from the beginning.  “Do not be afraid to ignore the discount,” he says,  “If your product and service is worth it, undervaluing it may do more damage in the long run than a few extra sales may help in the short run.”  He also advises new business owners not to overspend for things they don’t need, nor underspend for things of value to the business.

Dont Be Afraid to Fail

Failures are inevitable but don’t have to be final.   As Albert Einstein once said, “I have not failed 1,000 times. I have successfully discovered 1,000 ways to NOT make a light bulb.”   A new business owner should expect some failures and plan to learn from those mistakes.

 

RichardsonClement PC, is a full-service firm that specializes in representing closely held companies and their owners to help protect them from internal and external threats, of whatever nature or origin. We also help businesses identify and protect their intellectual property such as marks (brand), trade secrets, and other proprietary or confidential information.  At RichardsonClement PC, defending business is our business.  More information is available at RichardsonClement.com.
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