Starting a business involves a series of important decisions. As you determine the best corporate structure, develop clear and enforceable contracts, and lay the groundwork for your business, some seemingly minor decisions may fall through the cracks. Unfortunately, neglecting to address minor but critical issues before you launch your business can lead to legal headaches later on. Here are three mistakes to avoid when starting your Colorado business and how to avoid them.
1. Failing to do Your Research
It’s easy to assume that when you launch your business, your customers will magically arrive. However, you have to make sure that the goods and services your business will offer actually address consumer needs. Test your products and your services on people ahead of time and make adjustments based on their responses. Make sure you know that there’s a market for your services. Additionally, research your competitors—is there a company offering nearly identical products or services in your target market? How will this existing business impact your sales? Do your research so you understand any potential issues you may encounter after you launch.
2. Using Generic Contracts
Many small businesses understand that they need to create contracts, but they assume that using a generic business or employment contract template from the internet will give them the protection they need. Unfortunately, these boilerplate contracts include vague language that becomes essentially meaningless when a dispute arises. Instead, invest some time and money into working with a skilled business law attorney to draft and review your contracts. Going the extra mile here may save you a tremendous amount of time and resources should a dispute arise. Safeguard your business by using customized contracts.
3. Neglecting to Consult With a Business Attorney
While it’s not required to work with an attorney to establish a business in Colorado, doing so gives you greater protection and confidence. Even if you work with a business lawyer to review contracts or choose a corporate structure, you can trust that these decisions will protect your business’ best interests. As a bonus, you’ll now have a legal professional to consult should a dispute arise. Simply knowing that you have someone in your corner to call up at any time allows you to move forward with confidence.
Learn more about launching your Colorado business by calling Judex Law LLC today at (303) 523-4022 to discuss your goals with a knowledgeable business attorney.