Overcoming Common Challenges When Starting a Small Business

Starting a small business is a very exciting venture, but it requires more than just an entrepreneurial spirit and a good idea. As you start your venture, there may be some legal hurdles you face and it is critical to know what these are. This is the only way to prepare for them so you know how to overcome them. Below, one of our Utah business law attorneys outlines the most common challenges you may face.
Choosing a Business Structure
Choosing the right business structure for your business significantly affects your tax obligations, liability, and the ability to attract investment. For instance, while a sole proprietorship gives you full control of the business, it also does not protect your personal assets in the same way a corporation or limited liability company (LLC) would. A Utah business law attorney can assess your needs so you can make the right decision for your business.
Managing Finances
Effective cash flow management is critical for the growth and survival of any small business. According to the U.S. Bank, 82 percent of business failures can be attributed to improper cash flow management, or a failure to understand cash flow dynamics.
To avoid this common challenge, small businesses must develop solid financial practices, such as regular financial assessments, detailed bookkeeping, and securing appropriate options for financing in advance. These practices give small business owners a clear understanding of their financial position so they can plan accordingly and meet their operational needs and growth objectives.
Complying with Laws and Regulations
Small businesses must comply with a number of regulations and laws, from employment laws to zoning laws. For instance, the Fair Labor Standards Act (FLSA) dictates minimum wage and hourly standards at the federal level. Failing to comply with these laws can lead to legal challenges, including heavy fines. A business attorney can advise of the different laws and regulations that apply to your business and ensure you are in compliance with them.
Protect Intellectual Property
Obtaining intellectual property is critical for safeguarding a small business’ proprietary information and brand. This includes copyrights, trademarks, trade secrets, and patents. Without strong protections in place, a business is vulnerable to competition who could infringe upon these important assets. A business lawyer can help you file patents and register trademarks to effectively secure your creative works and innovations.
Finding the Right Employees
Finding and retaining skilled employees is critical for sustainability and growth. Finding skilled workers is difficult enough, but it is just as important to develop a work environment that retains and motivates them. This includes creating compensation packages that are competitive, understanding employment laws, and fostering a positive employment culture. A business law attorney can advise you of the laws that apply to your business and ensure you hire and keep only the best employees.
Our Business Law Attorneys in Utah Can Help You Overcome These Challenges
The legal aspects of running a small business involve more than just vigilance. You need customized guidance that is right for your unique goals and needs. At AGS Law, our Utah business law attorneys can provide the sound legal advice you need and help you overcome any challenges that may arise so your business gets off to the best start. Call us now at 801-477-6144 or contact us online to schedule a consultation and to learn more about how we can help.
Source:
forbes.com/sites/melissahouston/2020/12/22/how-this-cash-collector-turns-outdated-accounts-into-cash-quickly/