Mistakes that could be detrimental to a startup
As entrepreneurs prepare to form an LLC startup, it is important to avoid mistakes that could jeopardize the longevity of the company. In Forbes magazine, Shaun Rein, founder of the China Market Research Group, offers advice that helped keep his company going strong past the critical five year mark.
While product development is important for any business, Rein emphasizes that building a strong brand is even more imperative. Rein mentions that he turned down deals that he felt wouldn’t help expand his company’s scope and client diversity.
This is a strategy that he feels saved his company. When his American clients, who used to contribute up to 50 percent of his revenue, dropped down to 5 percent during the recession, he was able to stay afloat because of profit from his international clientele.
Second, holding on to cash is vital, according to Rein. In USA Today, Steve Strauss, a lawyer who focuses on small business, also cautions that taking on too much debt can sink a business, and that entrepreneurs must always have a plan to pay back their loans.
Rein also urges entrepreneurs to manage their stress levels and take care of their health, while Strauss notes that the key to a successful business is having help. He encourages business owners to invest in a great team – this will help even out the burden.