Common startup company mistakes
The decisions that entrepreneurs in Connecticut and around the country make before launching commercial ventures often cast long shadows, and their eagerness to get their new businesses up and running can sometimes lead them to make choices that may seem unwise in hindsight. Entrepreneurs must choose what type of product or service they will bring to the market and how they will obtain the funds necessary to cover their startup costs. Devoting sufficient time to these important decisions can help them to avoid many common pitfalls.
A new business venture does not need to provide customers with unique benefits to be successful, but it should present them with a solution to a problem that actually exists and offer them either cost savings or greater convenience. Many current startup companies save their customers time or money by using information technology in novel ways, but entrepreneurs considering such a venture should ensure that they will be providing a real solution and not just adding an unnecessary layer of complexity.
Funding a startup company can be difficult for entrepreneurs hoping to provide their customers with a new way to tackle an old problem. Lenders are generally more impressed by predictability than innovation, and banks may be unwilling to extend credit when figures from competing businesses are not available. Venture capitalists often make onerous demands and may even insist on appointing their own executives, but entrepreneurs may be able to avoid such conditions by approaching angel investors or using crowdfunding platforms to raise the money they need.
Attorneys that are familiar with the challenges faced by business owners may be able to help entrepreneurs avoid making costly mistakes. Lawyers with business law experience could scrutinize financial packages for provisions that could become problematic in the future, and they may also help entrepreneurs overcome the regulatory and legal obstacles involved in launching a new commercial venture.