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What Mistakes Could Sink Your Startup?

Many startups fail each year despite having a good product or service. In some instances, the owners of the startups made mistakes that were easily avoidable. If you are trying to get your business off the ground, it pays for you to avoid these mistakes.  

Underestimating the Importance of a Good Contract 

It can be easy to overlook the importance of drafting contracts that specifically fit the needs of your startup. After all, there are many tasks that you have to focus on to get your business going. However, without good contracts in place, all of your hard work could be sunk with one bad business disagreement from which your contract does not provide protection.  

Contract writing can be challenging and there are a lot of situations to consider. Unfortunately, generic contracts that you find to download and print online are not enough. You need a contract that specifically names the terms and conditions for your business arrangements. For instance, your agreement with a vendor and a venue are going to be two different types of contracts.  

Due to the challenges of contract writing, you should rely on your attorney to help with the drafting. He or she knows the state and federal laws that should be considered in drafting the documents and can help ensure you have considered every possible scenario that would leave your business vulnerable to lawsuits.  

Relying on Bad Advice 

Most startup owners know the importance of getting advice from others who have experience in the industry. However, getting bad advice from the wrong source could hurt your business rather than grow it. The advice that you receive should be fully vetted before you determine whether or not to follow it.  

For instance, if your investors have recommended the hiring of certain people, you should not waive your usual hiring procedures. Instead of simply adding the people to your staff at the suggestion of investors, take the time to vet them. If not, you could be left with having to restructure your staff at a later time when you are forced to end your relationship with those people.  

Asking for advice makes sense, but always take the time to do your own research. Once you have completed your research, you can assess what you have learned and the advice you have received to determine the best decision for your business. Remember, the success of your business is what is most important. 

For more legal help, contact an office like The Law Office of Vernon Nelson.