Starting a business can have many daunting challenges. If it is your first startup, you may be more vulnerable to common mistakes.
According to a report from Small Business Trends, about 50 percent of startups fail before their fifth year. This is due to a variety of factors, one being lack of preparation.
What are some ways to help you prepare your new business for success? Here are five things to consider.
Have a business plan
You may think you have a great idea or product, but that is not enough to guarantee success. In business, you need to have a thorough plan in order to attract investors and be successful. Make a plan for how you will market your product, how much it will cost to make, how many employees you will need and how you will operate.
Be in compliance with the law
It is important to be in compliance with Oregon’s laws to ensure your business does not run into any legal trouble. Make sure you understand the tax laws. You will also need to obtain the correct licenses and permits and register your business. A business attorney can assist you in solidifying this information.
Register a trademark
Before starting your business, remember to verify that the name or service mark you have picked out is not already trademarked. You can check with the U.S. Patent and Trademark Office and the Oregon Secretary of State.
Funding your business
One of the most common reason startups fail is because they run out of cash. How will you fund your business? Some options include using your personal savings, selling personal assets, taking out bank loans or borrowing from friends and family.
Having a great idea for a product is a good start. But what makes you stand out from the competition? Think about your market differentiators so as to separate yourself from the crowd.
Your Next Steps
In his bestselling book The Seven Habits of Highly Effective People, Stephen F. Covey advocates beginning with the end in mind. In the context of starting a business, this means thinking about what you want from it and then taking the right steps to get there.
As we’ve outlined in this post, there are many such steps to consider to set your business up for success. A skilled business law attorney can help you identify them in more details and provide useful guidance on the journey.