How to Avoid Common Startup Pitfalls

How to Avoid Common Startup Pitfalls
December 16, 2016 234Finance

The popular saying that ‘knowledge is power’ holds true in business as many other areas of life, considering the fact that most startups have a lifeline of 5years. Here are some pointers to help you avoid some of the most common startup pitfalls:

1. Use a contract – You need to always have a contract with partners, clients and employees in order to keep things straight and defined;

2. Create agile business systems – Create a network of operations that guide you towards attaining your strategic and operational objectives;

3. Understand your payment terms –  Be financially prudent and ensure that costs are well appropriated;

4. Cover your legal bases – Hire an attorney to help define legality and compliance issues in your business;

5. Know the difference between employee and independent contractor – Know what roles and commitment levels you need a regular employee for and what roles could be outsourced;

6. Don’t consider joint ventures without an agreement – Clearly communicate your expectations, responsibilities and limitations about joint venture agreements with your collaborators and ask for formal documentation;

7. Find the right tools – Use electronic business tools like outright: a simplified, secure online bookkeeping service and  Evernote: an online “everywhere” app  to capture and access ideas by voice recording, text, documents, and so on, to make your business operation more efficient.

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Image Source: CB Insights

Author: 234Finance

234Finance is an online hub that promotes African Entrepreneurship. We feature small and medium sized businesses on the platform, shedding light on the current and future developments in diverse sectors across Africa. We also provide free resources, share opportunities and events on our platform that entrepreneurs can benefit from and thrive in Africa’s tough business landscape.

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