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Startups Can Be Risky Legally and Financially. Here is How to Mitigate the Risk

Posted on in Business Formation

IL businenss lawyerIf you dream of starting your own business and breaking free from the rigidity of a 9 to 5 job, you may be interested in a startup. Entrepreneurs who intend to start their own business have a great number of issues to contend with. Although television shows like Shark Tank can make it look easy, building a successful startup is a challenging process full of potential pitfalls. Almost 90 percent of all startups eventually fail. However, proper preparation and working with an experienced business law attorney can help you avoid pitfalls and build a thriving business.

Do Not Underestimate the Amount of Capital You Will Need

Most people hoping to start a business greatly underestimate how much money they need to actually start the business. You must consider not only initial costs but ongoing costs. It is also important to have some “cushion” so you can cover any unexpected expenses you face. Bank loans, private loans, and investors are usually the first places entrepreneurs look when building capital.

Reach Out for Help And Advice Before You Need it

Humility and a willingness to accept advice are two crucial traits of any entrepreneur. Do not be afraid to ask successful business owners and entrepreneurs for advice. They can tell you what mistakes they made when they were starting their businesses so you avoid making the same mistakes. Furthermore, work with a skilled business law attorney to make sure you do not put yourself in a position to experience any unexpected legal problems in your business.

Give the Customers What They Want

Many entrepreneurs are eager to sell products and services they personally believe in. An innovative product or service you personally created may be the main focus of your business. Unfortunately, customers may not always want what business owners think they will want. The product you thought would be a sure-fire hit may end up being the least desirable. Market research is essential to understanding what clients or customers want and need. Listen to what the customers are demanding with their words and their wallets.

Protect Yourself Legally

Business owners can face overwhelming fines and stressful legal problems when they neglect to get the right permits, registrations, and licenses for their business. In addition to these issues, you will also need to address intellectual property issues such as patents and trademarks. Ensure you have strong contracts to protect yourself and your business. Lastly, make sure the structure of your business makes sense given your particular needs.

Contact a Wheaton Business Law Attorney

If you are starting a business, contact Stock, Carlson & Asso. LLC for help. Call our skilled DuPage County business lawyers at 630-665-2500 for a confidential consultation.

Source:

https://www.cbinsights.com/research/startup-failure-reasons-top/

https://www.forbes.com/sites/allbusiness/2020/02/01/legal-mistakes-made-by-startups/

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