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Costly business mistakes to avoid repeating

| Mar 1, 2013 | Business Formation & Planning |

It is inevitable that business owners in North Carolina and elsewhere will make mistakes. When establishing a business, owners are frequently so excited about what they are going to do right that they don’t focus on what they can do wrong and how best to avoid those mistakes. Businesses that learn from their mistakes increase the odds of success.

One of the biggest mistakes an owner can make is not acquiring the necessary knowledge before starting his or her business. One must thoroughly research and know the target market, the needs and behavior of the customers in that market and who its competitors will be. Business owners need to listen to their customers as well and must readily adapt to a constantly changing business environment.

Another frequent mistake made by business owners is neglecting to be financially prepared. Businesses need a plan to generate sales and a financial plan for all scenarios. Failure to set goals and establish a strategy for reaching those goals is another potential mistake one can make.

The last two mistakes business owners may make but should never repeat have more to do with the personality of the owner. One mistake is failure to have a mentor or to take advantage of teachable moments. The last mistake is lacking integrity. A business with a reputation for dishonesty may soon be without partners, employees, suppliers or clients.

Any one of the mistakes listed above may be costly and even fatal to a new business. Consulting with an experienced business law attorney may help a business avoid such costly errors. Knowledgeable attorneys may offer advice on the best legal structure for the business and how to protect its physical and intellectual assets.

Source: Forbes, “Six business mistakes you should never make twice“, Steve Olenski, Feb. 15, 2013

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