Indeed, starting a business and maintaining any level of success can be fraught with various problems, and the most popular among them is legal issues.
Many growing business make the same legal mistakes, so I’ve pointed out the most common mistakes and detailed how to avoid them.
Getting caught out by technicalities
The excitement of forming your own business can often lead many businessmen and businesswomen to forget the basic corporate and legal formalities. No one enjoys doing admin, but if you don’t you could land yourself in hot water.
Things such as meeting minutes, stock ledgers, filling and licence renewal are mundane I know, but they are also incredibly important and can make or break your business. The best way to avoid this is to create an extensive and in-depth business calendar to keep track of important times and dates.
Not being upfront with co-founders/investors
No one likes to talk about money; everybody knows that, but when running a business, you need to be prepared to pretty much exclusively talk about money. Bringing up the subject to co-founders and investors can be tough, but avoiding it will lead to lawsuits.
Make sure you have a meeting once, or even twice a month, to meet with the investors and discuss where the company is, how much money you’re making/losing and what to do in the next month to make it better. This leads to harmony and everyone being on the same page.
Continue on the next page for the three remaining mistakes that founders make, including not planning an exit strategy.
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