Serving New Jersey Clients Since 1977

5 common mistakes to avoid as a new business owner

No matter what kind of new business formation you choose, you want to start out on the right foot.

There are many ideas to explore and decisions to make. Here are five common mistakes to avoid when launching your new business.

1. Forgetting to prepare a marketing plan

Do not make the mistake of relying solely on friends and family to help get your new business underway. Prepare a marketing plan that makes use of current techniques. At the minimum, you should have a website, a presence on social media and an advertising campaign that puts your name in front of potential customers.

2. Underpricing products or services

Finances are vitally important for every new business owner but avoid underpricing. Study the competition and set your prices accordingly, making sure you do not charge too little for your products or services.

3. Ignoring the importance of written agreements

There was a time when a handshake sealed a deal. Today you must have written agreements for everything from invoices to contracts with partners and suppliers.

4. Not protecting intellectual property

Protect the name of your business, your logo or your invention so that no one can steal what is vital to your business success. You may need to register a copyright, trademark or some other type of legal ownership.

5. Failing to think far enough ahead

You should not think only of short-term goals. Look to the future and decide what you expect of your business in one year, five years or ten.

Building a team

As you start your new business, do not hesitate to ask questions and get professional advice from an accountant, a financial adviser and an attorney. They will help you understand and build upon your strengths so you can position your company for success right from the start.