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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 March 12, 2019

20 Inspiring Vision Statement Examples (2019 Updated)

20 Inspiring Vision Statement Examples (2019 Updated)

There is normally a lengthy list of things you need to consider when starting a business, and if you don’t manage them properly, your excitement can quickly turn into overwhelm. What can support you to stay inspired and on the right track when starting out? You guessed it: this is your vision statement.

What Is a Vision Statement?

A vision statement is like a photograph of your future business, which gives your business shape and direction.

A vision statement provides the direction and describes what the founder wants the organization to achieve in the future; it’s more about the “what” of a business. It is different from a mission statement, which describes the purpose of an organization and more about the “how” of a business.

If you were to take a photo of your future business now, what would it look like? What do you want your business to be recognized for one day?

You need to have a crystal clear vision when you start out, otherwise you can get easily lost in deciding the best way forward. When you are making strategic decisions for your business and even daily operation decisions, your vision statement will give you the inspiration and targeted direction you need.

The Importance of a Vision Statement

Without a vision statement, your business will lack motivation to keep going.

If you don’t aim for anything, you might not hit anything. The more specific and clear you are, the better your chances are at seeing your vision turn into reality.

The importance of a vision statement cannot be overlooked; not only does it provide long term direction and guidance, but it also gives you the inspiration and the necessary energy to keep going when you feel lost.

Always keep your vision statement alive by revisiting it regularly and communicating your vision with other members of the team, to inspire and motivate them as well.

How to Craft an Inspiring Vision Statement

1. Dream big and use clear language

An inspiring vision statement should inform a clear direction and priorities for the organization, while challenging all the team members to grow together. Based on our expert sources’ advice, we’ve got some great tips for you:

  • Imagine how you want the business to be like in five to ten years.
  • Infuse the business’ values in the statement.
  • Make sure that the statement is implying a clear focus for the business.
  • Write your vision statement in the present tense.
  • Use clear and concise language.
  • Ensure the statement is easily understood.

There are many different types of vision statements and there is no wrong or right way to do it. The most important thing is to resonate with it. It will always inspire you and give you a clear targeted direction.

2. Get inspirations from the successful companies.

Having researched on a number of successful companies’ vision statements, I’ve shortlisted 20 good examples for the new startups:

Short vision statements made up of a few words only:

1. Disney

To make people happy.

2. Oxfam

A just world without poverty.

3. Ikea

To create a better every day life for the many people.

Quantitative statements are based on numbers, quantities:

4. Microsoft

Empower every person and every organization on the planet to achieve more.

    5. Nike

    Bring inspiration and innovation to every athlete* in the world. (*If you have a body, you are an athlete.)

      Qualitative statements are based on qualities that you want to have:

      6. Ford

      People working together as a lean, global enterprise to make people’s lives better through automotive and mobility leadership.

      7. Avon

      To be the company that best understands and satisfies the product, service and self-fulfillment needs of women—globally.

      Competitor based statements – this type is becoming less common, but famous examples are:

      8. Honda – in 1970

      We will destroy Yamaha.

      9. Nike – in 1960s

      Crush Adidas.

        10. Philip Morris – in 1950s

        Knock off RJR as the number one tobacco  company in the world.

        Role Model Vision Statements – using another company as an example:

        11. Stanford University – in the past

        To become the Harvard of the West.

        12. Reach for Success – in the past

        To become the next Tony Robbins in self development.

        Internal Transformations vision statements:

        13. Apple

        To produce high-quality, low cost, easy to use products that incorporate high technology for the individual.

        14. Giro Sport Design

        To make sure that riding is the best part of a great life.

        15. Tesla

        To accelerate the world’s transition to sustainable energy.

        16. Sony

        To be a company that inspires and fulfills your curiosity.

        17. Facebook

        To give people the power to share and make the world more open and connected.

          Longer and more detailed vision statement:

          18. Walmart

          To give customers a wide assortment of their favorite products, Every Day Low Prices, guaranteed satisfaction, friendly service, convenient hours (24 hours, 7 days a week) and a great online shopping experience.

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          19. Coca Cola

          To achieve sustainable growth, we have established a vision with clear goals:

          Profit: Maximizing return to share owners while being mindful of our overall responsibilities.

          People: Being a great place to work where people are inspired to be the best they can be.

          Portfolio: Bringing to the world a portfolio of beverage brands that anticipate and satisfy peoples; desires and needs.

          Partners: Nurturing a winning network of partners and building mutual loyalty.

          Planet: Being a responsible global citizen that makes a difference.

            20. Heinz

            Our VISION, quite simply, is to be: “The World’s Premier Food Company, Offering Nutritious, Superior Tasting Foods To People Everywhere.” Being the premier food company does not mean being the biggest but it does mean being the best in terms of consumer value, customer service, employee talent, and consistent and predictable growth.

            The Bottom Line

            Remember, always keep your vision statement up-to-date to direct your company’s actions.

            Remember, once you reach your vision, it needs to be changed. General Motors overtook Ford as #1 automotive company in the world because once Ford’s goal was reached, they never updated it.

            Keep your vision statement alive and visibly in front of you, revisit it and let it help direct your actions and activities. This is the fun part: this is where you get to dream really big and allow your imagination to fly as high as you want.

            Don’t hold back, let your creative juices flow and give yourself permission to explore what is possible for your business.

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            To your success!

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