You have a good idea and want to work for yourself, so you decide to start a business. While starting a business is exciting, it also leads to headaches and a heap of problems—issues you may have never even thought about. Because problems always creep up when starting a business, creating a business plan can help reduce some of the issues prior to opening your business.

A well-drafted business plan can help you organize your thoughts, lay out your goals, budget the costs needed to run a business, and help identify issues so that you can solve them before they ever occur. 

So what are some common startup problems many entrepreneurs face when starting a company? 

  • Planning – before opening your business, you need to make sure you have planned for everything, including rent, utilities, supplies, marketing, employee compensation, and other projected costs. You can alleviate a lot of problems by spending time planning the business.
  • Competition – new businesses need to know what the competition is in the market in order to compete for business. Find out what the competitors are doing right and what they are doing wrong. Expand on what your competitors are doing right, but don’t copy them; make your company better.  
  • Labor – when starting a business, you need to be concerned about the regulatory laws for employees, report new hires to the state, and budget for payroll, taxes, and administrative expenses. Payroll taxes need to be paid every quarter, and businesses have to follow federal employment regulations, such as the Fair Labor Standards Act and Occupational Safety and Health Act. 
  • Funding – when starting up a business, a loan may be needed. In order to minimize problems getting financing, review each business partner's credit score and debt-to-income ratio so you will not be turned down for a loan. Also, make sure your business plan is financially sound.
  • Licensing – some businesses may need special licensing and permits. In order to avoid a problem with the local, state, or federal government, confirm with your state what requirements your specific company may need in order to comply.

To make sure you have planned your startup well, talk with an experienced Austin business attorney for your small business general counsel service needs. You can reach the Posey Law Firm at 888-269-1962 or locally at 512-646-0828. Our attorneys can help you strategize, budget, draft contracts, and make sure you are in compliance to help you minimize potential business problems. Call today.