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8 Problems That Could Arise On Any Business Start-Up

8 Problems That Could Arise On Any Business Start-Up

A lot of successful businesses start around a kitchen table or computer basement, and they operate informally at first, disregarding or entirely ignorant of many legal requirements. It is essential for a business to operate legally in order to join in the mainstream. However, we all know that it is undoubtedly a costly transition to make. Being smart and approaching it well-prepared can save money in the long term. It will enable your business to grow and avoid legal fees and other major problems. Here are eight common legal problems faced by emerging businesses.

1. Striving too hard to get a “big order”

Procedures have to be in a place, and under control, to attract business from major customers. A software business start-up run from a basement, using neighbor children working after school to fill orders, has to struggle to land a big contract from a large company. They have to demonstrate their ownership of any intellectual property and show that their employment and business practices will satisfy their customers’ audit procedures.

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2. There’s a fund crisis due to overhead

Increased overheads can threaten the viability of a business. A popular gold cash buyer expanded their mailing system through creating a website and found that it had to double prices to cover the increased overheads in an attempt to get necessary licenses and credibility to gain trust and reputability. Also, a crisis may ensue if orders start to decline dramatically. You can attempt to recoup this financial crisis with the help of a crowdfunding source or through a joint venture.

3. Issues with employees

An example is a cleaning firm that had to increase its rates significantly to cover the costs of addressing a range of legal issues and obligations related to its employees. Procedures had to be set up for each worker, including the I-9 Immigration form which requires documents that establish an employee’s identity and eligibility to work. Liability and workers’ compensation insurance had to be set up, and a payroll system to handle tax withholding.

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4. Incurring penalties and fees for payroll and sales tax

Thousands and thousands of dollars of penalties, interest, and legal fees. That is just one of the major problems faced by a business owner who failed to pay sales taxes and payroll in a timely manner. The tax authorities levied on the owner’s business and personal bank accounts, thus disrupting activities in both.

6. Not being able to take advantage of the available legal protection

You should consider incorporation (such as S-Corp, C-Corp, or LLC) to protect your assets from business liabilities. Other considerations are homestead declaration to protect your home creditors and registering for copyrights and patent law protection.

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6. Unable to consistently establish and follow workplace practices?

Policies and procedures must be set up to guide employees and contractors. Professional industry practice, training, management of issues and problems should also be defined and followed. If relevant, non-competition and non-solicitation agreements should be in place.

7. Insufficient bookkeeping and accounting practices

Use good practices for keeping all financial records. Prompt invoices, regular reports, and keeping records so any irregularities are detected early on. Prepare for, and pay all, your estimated taxes when required to.

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8. Wrong business partnerships

Like marriages, business partnerships are much easier to get into that out of. It often starts with great enthusiasm and big expectations. Ask yourself these questions before you put your signature on the dotted lines of any contract.

  • Do you really need a business partner?
  • If yes, then what exactly are looking for a business partner?
  • What is his financial situation?
  • What are his expectations?
  • What level of commitment he has to the business?
  • Is he willing to put everything in writing?
  • What happens if things don’t work out?

Yes, two brains are better than one, but there needs to be compatibility in order to create harmony and business flow. Don’t rush in, be cautious, thorough, and again, put everything in your agreement into writing.

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Junie Rutkevich

Game Developer of iXL Digital

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Last Updated on May 22, 2019

50 Great People To Follow On LinkedIn, No Matter Your Industry

50 Great People To Follow On LinkedIn, No Matter Your Industry

LinkedIn is an excellent platform to network with great people to help you in your career and businesses. However, with over 575 million people on the site, who should you follow? This list will steer you to the right people to follow, organized by categories of expertise.

Job Search Experts

You will likely have several jobs throughout the course of your career, and you will constantly need advice on new trends and strategies out there in the job market. Here are the LinkedIn experts who you should follow on these matters.

1. Liz Ryan is the CEO and founder of Human Workplace. Her articles on job searching are filled with creative and colorful cartoons.

2. Lou Adler is the author of The Essential Guide for Hiring and Getting Hired.

3. Dr. Marla Gottschalk will help you make an impact in a new job.

4. Hannah Morgan runs CareerSherpa.net, where she gives expert advice on job searching and how to be more visible online.

5. Alison Doyle is the CEO and Founder of CareerToolBelt.com.

Management Experts

They say that people leave managers, not jobs. These experts in LinkedIn will help you become your employees’ dream manager.

6. Jeff Weiner. How can we leave out the CEO of LinkedIn himself?

7. Nozomi Morgan is an executive coach. She can help you transition from a boss to a true leader.

8. Mickey Mikitani is the CEO of Rakuten. He constantly shares his expertise in managing a global player in e-commerce platforms.

9. Andreas von der Heydt was the head of Amazon’s Kindle Content and now the Director of Talent Acquisition. He has extensive experience in management, branding, and marketing.

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Productivity Experts

By maximizing your productivity, you can win in all aspects of life. The following LinkedIn experts will help you win big in your career.

10. Gretchen Rubin is a happiness coach and the bestselling author of the The Happiness Project.

11. Carson Tate is the founder of Working Simply. She advises us to include play in our schedules.

12. Greg Mckeown is an essentialist. Part of being an essentialist is saying no to many things so that we can focus on the things that matter.

13. Brian de Haaff, CEO of Aha! Labs Inc. provides strategies on how to be productive and happy at work at the same time.

Marketing Experts

14. Sujan Patel is VP of Marketing at When I Work, an employee scheduling software. He is an expert in content marketing and he even shares his ideas on content marketing in 2020.

15. Megan Berry is the Head of Product Development at Rebelmouse, a content marketing and AlwaysOn powerhouse.

16. Sean Gardner will help you navigate the social media landscape. This includes how to use different platforms to help accelerate your career. He is also the bestselling author of The Road to Social Media Success.

17. Christel Quek is an digital and marketing expert. She is the VP of South East Asia at Brandwatch. Their products help businesses utilize social media data to make better business decisions.

18. Jeff Bullas is a digital marketing expert. His blog has over 4 million readers annually.

19. Michael Stelzer is the CEO and Founder of social media powerhouse site, Social Media Examiner.

20. If you’re looking for inbound and content marketing expertise, follow Dharmesh Shah, Founder and CTO of Hubspot.

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21. David Edelman is a McKinsey partner and is at the helm of the Digital Marketing Strategy Practice Department.

22. Dave Kerpen leads the social media software company Likeable Local. He is the author of Likeable Social Media: How to delight your customers.

23. Clara Shih is the CEO of Hearsay Social and the author of The Facebook Era.

24. Aaron Lee is Grand Master of Customer Delight at Post Planner. He is an excellent resource for everything social media.

25. David Sable is the CEO of Y&R, one of the largest advertising firms in the world.

26. Content marketing trumps traditional marketing these days, and who else better to lead you in this area than Joe Pulizzi, Founder of Content Marketing Institute.

Personal Branding Experts

Part of what we market in our personal career is our brand. When people hear your name, what kind of brand comes into their mind? What traits and qualities do they associate with you?

Here are some personal branding experts from LinkedIn to improve your own brand.

27. Dorie Clark is the author of Stand Out and Reinventing You. He can help you craft the professional image you’ve always wanted.

28. Dan Schawbel is the managing partner of Millennial Branding. If you’re a millennial, Dan is the guy to help you craft your personal brand.

Other Notable Experts to Follow

29. Lisa Gates is the expert to follow if you’re negotiating for higher salaries and promotions.

30. If you’re a Baby Boomer, Marc Miller will help you navigate the continually changing landscape of the workplace.

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31. To avoid getting your resumé moved to the “No” pile, read Paul Freiberger’s excellent advice.

32. James Caan provides insightful ideas on careers in general. He is also a serial entrepreneur.

33. Jeff Haden writes on various topics, such as leadership and management. He is the owner of Blackbird Media.

34. If you’re looking for expert business advice on getting new customers and keeping them, follow Jay Baer.

35. Suzanne Lucas, aka Evil HR Lady, is a great human resources specialist.

36. If you need help in using Twitter to boost your career, Claire Diaz-Ortiz can guide you in the right direction.

37. Ryan Holmes is the CEO of Hootsuite, a social media management tool.

38. Customers are the lifeblood of a business and Colin Shaw focuses on revolutionizing this customer experience.

39. Brian Solis often reflects on the future of business and how technology can disrupt our world.

40. Nancy Lublin provides advice on more lighthearted topics, which are perfect after a long day’s work. She is the CEO behind Dosomething.org, a portal designed for social change; and the founder & CEO of Loris.ai and Crisis Text Line.

41. Katya Andresen provides advice on how to manage your career. She was the CEO of Cricket Media and now responsible for the SVP Card Customer Experience at Capital One.

42. Gallup has created a system to test what your strengths are and how to use them at work. Jim Clifton is the CEO of Gallup.

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43. Adam Grant is a Wharton Professor and the author of Give and Take, which provides advice on why being helpful at work can accelerate your career.

44. Hunter Walk is a partner at Homebrew Venture Capitalist Company and has specialty in product development and management.

45. If you’re running a nonprofit organization, follow Beth Kanter for expert advice on this area.

46. Emotional Intelligence is necessary to succeed in your career, and Daniel Goleman is your expert for that.

47. Rita J. King connects science, technology and business.

48. Tori Worthington Rose is a Creative Director at Mary Beth West Communications, LLC. She has extensive experience in sales and digital media.

49. If you’re looking for some advice on how to use writing and personal content marketing to boost your career, follow Ann Handley.

50. Tim Brown is the CEO at IDEO and shares his insights on Leadership and Creativity.

These are just some of the key thought leaders and movers in various industries. They will provide you with constant inspiration, as well as the willpower to pursue the career that you’ve always wanted. Their stream of expert ideas in their respective fields will help you become well-equipped in your professional pursuits.

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Featured photo credit: LinkedIn Sales Navigator via unsplash.com

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