Ask a Lawyer: Tops Mistake Entrepreneurs Make When Starting a Business
Audra Lowe: A lot of people are starting their own businesses but that can be expensive and a lack of money can also equal big mistakes. Carolyn Kepcher is an entrepreneur herself and she was so impressed by Attorney Nina Kaufman that she invited Nina to become one of her Work Her Way experts. Nina shares some of our do’s and don’ts when starting a business.
Carolyn Kepcher; Thank you so much for joining us today. There are many mistakes that we make along the way. I have, I’m sure you have but I’m curious, what is the number one mistake that most people make when starting a business?
Nina Kaufman: I can only choose one, right?
Carolyn Kepcher; Only one because we only have a small amount of time because I know we could go on for hours.
Nina Kaufman: I would say the biggest mistake that most new entrepreneurs make whether they are doing things part time, online, however they’re doing it is to not have some kind of written agreement with their clients. And what I hear from a lot of people is, “Oh, can I just download something from the internet?” But you don’t know whether or not what you’ve downloaded really applies to your situation, whether there’s anything in there that can hurt you or anything that should be in there that can help you. What business owners don’t often realize, they think the contracts that are just things that lawyers make up to put money into their pockets but they’re really a vital communications tool.
Carolyn Kepcher; But what I love is your Entrepreneur Prenup. You have to tell us about that.
Nina Kaufman: Yes, well, the subtitle for the program is called, how to choose a business partner who won’t blip you.
Carolyn Kepcher; We call them blip.
Nina Kaufman: We call them blip. But very often, people are going into business with a partner. They’re not doing it with the intention of blipping you. It’s that they haven’t gone through and have the hard discussion about the major issues that will be involved in running a business together. So we may think, “Oh my God, you’re so fabulous. We have to work together.” But that doesn’t mean our goals are compatible. It doesn’t mean that our – the way we work together truly is compatible; that our money mindsets are compatible. You go into business with somebody that you know well and it just – it blows up in your face. So, you have to realize it’s a very counter intuitive thing that as well as you know the other person, you don’t necessarily know them in a business context. So that’s where you want to be extra careful because you have that very special friendship and personal relationship asset that you must, must, must protect.
Carolyn Kepcher; And that’s typically more important than almost having –go into business. But you have business now for 15 years with your own company. So, give us the key to your success.
Nina Kaufman: I would say, the one thing that I learned that was so crucial to my growth as a business owner was to make sure that I had a team of people with me. For a while, I thought, “Oh, I have a business partner that’s enough.” But it’s not. I really needed the outside advice that I’ve got from different strategic coaches, marketing assistance, my accountants. You want to make sure that you’re focusing on your real strengths and leave the rest to the experts.
Audra Lowe: And just a little side note, Nina really hasn’t given up her day job but she says she has performed standup comedy. She says that actually helps her deal with the clients especially when they get the bill. And also with speaking engagements, but on the serious note, if you need business resources, we’re going to have tons of information for you. Just go to our website, BEtterTV.com and you’ll find info on how Carolyn and Nina can help you.
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