How to Make Sure Your Small Business Will Make It!
I live in a what I consider a mid-size city in Northern Utah, Ogden. Utah’s economy has been relatively strong while many other states have struggled. Ogden has seen strong growth.
I am excited about all that is happening in Ogden over the past few years and especially recently. There has truly been a revitalization of downtown which is great to see. However, getting those who aren’t from here or who reside outside of Ogden is difficult and frustrating. Many people I know who don’t live here have often asked, “Why would you want to live in Ogden?”, “Nothing is happening in Ogden” and “Ogden isn’t going anywhere”. Well, those of us who live in Ogden, love its beauty, its access to a variety of recreational activities and we can now say its ever growing business and commerce.
Unlike other places, Ogden still maintains a good balance of large commercials business and local small business which help Ogden maintain some of the characteristics we love about it. I root for the locally owned businesses in Ogden to thrive and grow but I know how difficult it can be for them businesses to make it.
Most every business owner’s dream is to create a successful business that will continually grow, hopefully for generations to come. For some the goal is to stay small, for some they can’t wait to shed the “small business” connotation. However, regardless of what the new start up business’s goals are, there are things to be done to make sure they don’t end up like most new business, closed and bankrupt within the first few years.
Pat Shriver, a fellow attorney, wrote a great short article about what common mistakes small businesses make which may lead to their downfall. The ten most common he states as follows:
1. Failure to organize a business entity.
2. Failure to adopt a well-thought-out business plan.
3. Failure to address employment issues.
4. Failure to do a buy/sell agreement.
5. Failure to have a succession plan.
6. Failure to protect intellectual property and trade secrets.
7. Failure to understand the consequences of personal guarantees.
8. Failure to avoid costly litigation.
9. Failure to consider more than legal issues.
10. Failure to hire legal services.
