Starting and running a small business comes with all sorts of challenges. It can be impossible to foresee and plan for every possible obstacle, especially if this is your first time running a business. Fortunately, there are a few common mistakes that you can take steps to avoid in order to prevent serious costs and delays from derailing your company’s growth.
Not keeping track of regulations that kick in as you grow
You probably started your business as lean as possible, with the minimum number of employees necessary. As you hire on more people, you need to be aware that many federal and state regulations start to apply to business after they reach a certain number of employees.
Consult your trusted legal counsel if necessary in order to ensure that your business stays in compliance with labor laws and regulations, and so that you do not open yourself up to avoidable fines and lawsuits.
Taking the wrong deductions
Sorting out taxes for your business is its own world of headaches. There are some deductions that can really help your business to save money. If you take more deductions than you qualify for, however, you run the risk of a devastating IRS audit that can set your company back financially.
Ignoring human resources duties
In a small business, the owner often doubles as the human resources department. As such, you should be doing things that an HR representative does in larger companies – such as giving workplace sexual harassment trainings.
Ensuring that your employees understand your company policy surrounding sexual harassment – and the consequences of violating it – can help to reduce the likelihood of an incident and resulting costly lawsuit.
It can be tricky to put your business on a path to growth while avoiding major pitfalls. With some careful planning, you will hopefully be able to keep your company financially healthy as you expand your operation.