Timing can be everything in the success of a new business. Many assume this means beating everyone to market, particularly in fast-paced environments like technology. However, the rush to meet a deadline can spell business problems or legal trouble further along the business’s timeline.
Rushing a business to market may capture the enthusiasm of employees and clients, but it can hobble new endeavors with growing pains or doom them with an unsustainable business model. Common problems to overcome can include:
- Miscalculating demand for their product
- Assuming early adopters would stick with them
- Faulty messaging that does not resonate with the target audience
- Over-estimating the staff’s ability to handle commerce
- The common growing pains that every new business endures
Legal issues are a concern
Entrepreneurs and founders often focus on building a great product and team but may be less focused on liabilities and compliance issues. New endeavors also need to avoid legal problems. These can include:
- Not having premises liability insurance if the company has a workspace open to customers can leave the business financially exposed to lawsuits
- Noncompliance or inspections that make the space unsuitable or unsafe for staff or customers, which can be as basic as hand railings or loose flooring tiles.
- Not having business licensing, employment taxes, worker’s compensation insurance, or other important business documents in order.
- Not compliant with all local, state and federal business operations laws.
Matters beyond your control
Industry trends often have a way of impacting a new business. Others may also threaten legal action because they believe there is an infringement or a violation of previous business agreements, such as a non-compete. Even if others’ claims are baseless, the new business cannot afford to ignore potential legal disputes.
Dot those I’s and cross those T’s
An experienced business law attorney can provide various services to business owners planning to launch a new endeavor or start-up. The business’s needs will vary, so it is essential to discuss the details with an experienced professional who can help troubleshoot potential issues before they become significant hurdles.