SMEs

10 mistakes to avoid for Start-Ups

 

Congratulations on starting your business. It feels good and exhilarating to form a vehicle with the potentials to live your dreams. However, where good things are bound to happen, bad things also have the potentials to creep in. So while gearing up for starting your journey, make sure you refrain from making these mistakes. They will definitely cost you dearly.
1. Not getting a lawyer: A lot of people believe lawyers are blood sucking parasites who are out to get all your money. Based on this, they find ways to avoid getting a lawyer when starting anything. This is a sign of bad decision making as a business owner. Having a lawyer is very essential to your business. He will be the guardian angel always leading you in the right part, giving you advice on virtually everything you should or shouldn’t do.
Benefits of having a lawyer
A lawyer would be handy in advising on the suitable business structure, helping to draw up and reviewing agreements, keep track of all your lawful obligations and other pitfalls that may be lawful but not beneficial to you and of course for the appropriate fee. Believe it or not, having a lawyer at starting up is more cost effective than getting one later.
2. Not having the right business structure: In Nigeria, there are business structures as stipulated by law and understanding these structures will help in understanding the appropriate structure to suit your current needs. Legal business structures are determined whether you’re starting off as a sole proprietorship, partnership, private or public company limited by shares or guarantee, an unlimited company or a non-profit organization.
Business Structures
It is possible to move to move from one form to another based on a few restrictions but understanding the particular one needed at the moment is very vital.
3. Not keeping records
Keeping records is definitely a no-brainer for every business owner. The importance of keeping records cannot be over emphasized as it helps not only as a source of reference but can be very handy should any legal issue arises. Apart from contentious legal matters, records can also be helpful when computing taxes. While paying taxes, your records would go a long way with determining allowable deductions.

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