We are just a few days away from 2013. The internet is filled with humorous resolutions for the New Year. And we all know about the big joke of the number of people that don’t follow through with their New Year’s resolutions. All joking aside if there is one resolution you stick to this year for your West Michigan startup or small business, make it be that you resolve to be a better planner. One of the biggest mistakes made by small business owners and startups is a lack of planning.
Nina Kaufman states in the video above that partners lack of having an end game is the biggest mistake she sees but this is just a lack of planning. If partners (or members of an limited liability company or shareholders of a corporation) come together and just start working on a project they end up wondering down an aimless path and in the end that path is not likely to lead to what either of those partners wanted when they started out. This is a mistake that can easily be avoided.
Kaufman brings up a great issue with partners needing an end game but this is a limited view. Startups and small businesses need to plan more than just where they see the business going. There needs to be a plan of how they are going to get to that end game. There should also be succession planning in case there is a tragic event to one of the owners. Planning for possible conflicts with vendors, suppliers, customers, clients, employees and independent contracts is also important. A plan on how to protect your business is a requirement too.
This planning is not complex or overwhelming but doing it right is necessary. Kaufman advises planning your end game with a business attorney and an experienced startup and small business attorney will be able to help you plan for these other things too. Often times simple contracts and agreements that fit your business can cover a lot of this planning. These can be done for a reasonable cost and the money saved on the back end far outweighs the cost.
So in 2013 make an appointment to have a free consultation with a business law firm to see what they can offer your Grand Rapids startup or small business in the way of planning. Remember it’s not the potential issues you already know about that can hurt your business but rather is the issues you don’t think of that your business lawyer will protect you from.