Starting your own business? That’s nice but before you too make mistakes that many other owners make in starting phase here’s our blog with 5 common mistakes to avoid with your new business to ensure smooth flow of your business.
Mistake 1: Not Getting Your Business Registered
One of the biggest mistake businesses makes is not getting their firms registered just in order to avoid extra expenses. However, this costs much in long run.
Not only you lose the chance of getting benefits from funding schemes, but you also can’t get FDI when unregistered and you don’t earn trust in the market as there is no legitimacy of the business entity. You can’t avail loan if your business isn’t registered.
Mistake 2: No Proper Compliance Organisation
In the starting phase of firms, many a times owners try to do everything by themselves this leads to overall un organization of the firm such as too much workload, haphazard working and ignoring day-to-day tasks of the company which includes accounting, finance and payroll.
Let’s take an example – if your financial issues aren’t taken care of then you would miss the deadline for payment. This would cost you a fine to pay and if you keep paying fines it would mess up your records also goodwill.
Taking professional help from companies like BBNC would lead to the smooth and easy flow of your business as we take care of legal, accounting and financial matters keeping your records clean.
Mistake 3: Avoiding Trademark/IP Registration
We all know how important a business name is and it's brand. That’s the first thing your customer notices hence you wouldn’t want it to be copied by your competitor and for that, there’s a need of getting trademark/IP registration. It also prevents others from misrepresenting their products with your mark.
To get the protection of trademark rights one has to register the trademark under Trademark Act 1999.
For example- The logo of a tick sign for Nike or a jumping wildcat for Puma etc helps the customers to recognise the brand and the brand value in one minute.
Mistake 4: No Tax Planning
If you want to lessen your tax you need to plan it but instead, business owners tend to evasion of tax which no doubt is an illegal and criminal offence.
Thus, when you get professional help from a team like BBNC we help you with tax planning which would reduce your tax liabilities and optimally utilize tax exemptions, tax rebates, and benefits as much as possible.
We would also help you in making financial and business decisions to minimise the incidence of tax. This helps you legitimately avail the maximum benefit by using all beneficial provisions under tax laws.
Mistake 5: Having No Contracts In Place
A proper contract should be drafted with anyone firm that has made a deal be it employees, suppliers, etc. Doesn’t matter how many promises were made verbally things should every time be drafted into a contract mentioning all conditions in detail.
This contract would also act as proof when someone breaches the agreement. Contracts are also important because they outline expectations for both parties, and protect both parties if those expectations aren’t met.
Mistake 5: No Licenses Acquired
When you start your business lot of licenses are required which becomes tedious and confusing and thus owners try to skip them.
Sometimes they also postpone it until they start making decent earnings but if you continue avoiding them then later on it would create problems like unwanted penalties, notice from govt departments and sometimes you will have close down the business as well. Hence reach out to us at bbnc.in and we would do a complete audit of your business and help you in acquiring all necessary licenses.
We hope you enjoyed reading this article on 5 mistakes to avoid while starting your business. If you want to set up a company in India and need assistance with your incorporation, please feel free to contact us anytime at email@example.com. Thank you for reading, we are always happy to be able to provide useful information on topics like this!