5 Common Legal Mistakes That Can Ruin Your Startup (Contribution from Michael Deane)

The following post comes to us from marketing entrepreneur, Michael Deane, who is the founder three businesses and currently working on his next startup venture. Be sure to learn more about Michael in his biography at the end of this article.

---

Alan Moore once said that ideas can change the world.

And isn’t that what all startups start out as? An idea that we hope will change the world?

While we are busy brainstorming and developing theories and ideas, coming up with the next product that will shake the ground we walk on, the business side of our business creeps up on us, and lurks there in the dark, waiting to pounce at the most opportune moment.

As a business owner, I can tell you two things: there will be about a million things you would rather do than read laws and regulations, draft contracts, do your taxes and fill out all the finger cramping paperwork needed to register a company. However – and it’s a big however – without the dull stuff, the fun stuff will not quite pay off as you hoped it might.

In order to hopefully save you some of the potential trouble down the line – here are my five legal missteps to avoid at all cost.

Not Knowing the Difference between a Corporation and an LLC

One of the most common mistakes you can make very early on is not even thinking about the different options to register a company. Naturally, the choice you make will mostly depend on where you live in the world, but the actual legal structures are quite similar, no matter what name they go by.

You can go for a sole proprietorship, a partnership, a limited company, a limited liability corporation, or a full blown corporation. The reason why this is important is quite simple: taxes. There’s also the issue of personal liability, which is again more important than you may initially think.

Weigh your options very carefully before you actually start this process. Some countries offer the option of registering your company online, which involves less hassle than having to walk from office to office to do it. There are also very different fees involved, and the necessary number of signatures can also vary.

As always in business, research is your friend, so do it right, do it early on, and save yourself the legal trouble later on.

Not Bothering to Protect Your Intellectual Property

When I say intellectual property, I don’t only mean secret recipes, production secrets and unique service ideas. Your intellectual property may be something as seemingly simple as a logo or a brand catchphrase. And while it may not seem too important early on, it may become a game changer in later years.

Trademarking any unique designs can protect your assets and save you from intellectual property theft. If you’ve ever seen Dream Girls, you will have heard the two versions of the “Cadillac Car” song – don’t let that happen to you.

If you have also come up with a new production system or even a new blend – patenting it can turn into a valuable asset.

Failing to Grasp the Importance of Contracts

A contract is a legal document in place to protect all of the parties signing it. When you think about it, you would never consider working with a client without one, right?

However, as you are starting out, you may feel it is easier to operate without them. Having to get a client to sit down and read through a couple of pages can be more difficult than chatting about a deal online, and shaking a firm hand.

To save yourself a lot of unnecessary headaches, draft a contract that will protect you – especially in case a client fails to pay an invoice. This happens more than you can imagine, and a contract that ensures you will get paid is a lifesaver.

While there are thousands of ready-made contracts available for download – you will be much better off if you have a template contract drafted by a professional attorney. This way, you ensure that the specifics of your business and the service or product you offer are taken into consideration, and that you are not overlooking a very obvious clause that may not have made its way into an online contract.

Googling for Help

While Google is often our best friend – it is the worst place to go for legal advice. While there are countless blogs and forums that can offer some great business tips, productivity hacks and motivational speeches – don’t ask the internet to tell you how to get out of a particular legal issue.

You will undoubtedly find an answer you will like, an answer you will find helpful and an answer that seems right – but no one can guarantee it will actually do the job.

Take everything you read online with a grain of salt (including this very article) and think things through yourself. We have become so dependent on having all the information in the world at our fingertips that we can forget to use our own common sense to solve a problem.

Being Unclear about Company Roles

Knowing who does what and is responsible for which aspect of the business is not only important from the legal standpoint. The law will need to know who the legal representative of your company is, and who is liable for what. Thinking about this early on is very important.

While there may only be a handful of employees in the company right now – that is likely to change, if the idea I mentioned at the beginning was sound. Figure out who will be the face of the company, who will be responsible for the financial side, and who will be the liable one, in case things go south. This is where the type of company structure you choose comes into play again.

I hope these five tips will help you as you set out to chase your dreams. And that 400 years from now, your idea is still changing the world!

---

About the Author: Michael Deane has been working in marketing for just under a decade, and has successfully launched three of his own businesses. Today, he runs a small business blog at Qeedle, and is working on his next big venture idea.

Advertisements

 

How Public Relations is Different than Marketing

If you use public relations tactics and hope to get results that really only marketing can produce, you’re going to be frustrated and likely begin to doubt the effectiveness of using PR to grow your business. The same is true if you mistakenly use marketing tactics and hope to get results that are more PR-related.

So what do you need to know? Let’s cut to the chase and set the record straight on the biggest and most important differences between public relations and marketing. This is not to say there won’t be exceptions to the rule. There always are. But for the sake of drawing a clear line, take these statements with a grain of salt.

Marketing is proactive. Public relations is reactive.

Marketing is almost always planned and purchased well in advance. Whether that’s a direct mail piece or promotional materials. When needed, public relations can be reactive in an effort to solve a problem, address a concern or announce something newsworthy. As a PR professional, I would certainly advocate to not make your PR efforts solely reactive. That’s as silly as it is dangerous. Public relations can and should be both proactive and reactive; however, marketing is rarely if ever reactive.

Marketing is business. Public relations is communications.

Here me out on this one. At Penn State (and likely at many other colleges across the world), my major of public relations was housed in the College of Communications, along with other majors like advertising and journalism. Marketing, however, was in the College of Business. This may seem trivial, but really it can help you understand just how closely marketing is linked to business and public relations is linked to communications. From the time someone begins to formally study one of these industries, they are placed on one of two very different paths.

Marketing changes your bottom line. Public relations changes public perception.

If you want to know if you marketing tactics are working, look at your bottom line. How have they impacted sales? On the other hand, quantifying your public relations efforts isn’t so straightforward. A good PR strategy will help to positively change the public’s perception of your brand. This can be tracked in various ways including focus groups and customer surveys, but the data tends to be harder and more expensive to obtain than simply pulling last quarter’s sales numbers.

Marketing is focused on sales. Public relations is focused on relationships.

If you remember nothing else, remember that marketing is growing sales and public relations is growing relationships. By growing relationships, this often leads to greater sales – which is why marketing and PR work well to support one another – but this is not the main focus. This understanding is critical because all too often I run into clients who are disappointed that PR isn’t producing higher sales, when that’s not its number one objective! If your focus is sales, look to marketing and if your focus is increasing good will with your customers, look to PR. Both will work together to grow your brand, but in their own unique way.

Still struggling to differentiate when to use Public Relations and when to use Marketing to grow your business and brand? Ask a question and let us help you answer it!

 

5 Mistakes New Businesses Make on Instagram

This week we continue our 4-week series in which we cover the top 5 mistakes business make on the most popular social media platforms including Facebook, Twitter, Linkedin and Instagram. We invite you to subscribe and follow along each Monday for quick and valuable tips on how you can avoid making these mistakes and immediately improve your business’s social media presence. Enjoy!

---

Instagram is an important social media platform that some businesses mistakenly overlook. But the visual storytelling power of Instagram in today’s marketing world is undeniable! Once you create an Instagram account for your business, it is critical that you understand the platform’s basic etiquette to get the most out of the time you devote to building your brand through its use. Let’s take a look at five mistakes to avoid as a new business on Instagram.

Not establishing a unique hashtag and not using it consistently on all posts

First things first, when creating an Instagram account think about your brand and create a unique hashtag to represent you and your business.  After you have your business hashtag it is important to consistently use that tag when posting.  Don’t let one post go live without using your brands hashtag, as doing so is a missed opportunity to market your business.

Posting photos that lack quality or creativity
The last thing you want to do when posting to any social media site is to look unprofessional, so make sure the photos you choose to represent your brand are high quality and high resolution.  Equally as important as a photo’s quality is its creativity. Look for unique angels and interesting visuals that tell a story. This is your best bet that your followers, and potential customers, will stop scrolling long enough to learn more about your business. A good gallery of photos will also help to set you apart from your competitors and further enhance your brand value.

Not following other accounts related to your industry, product or service

Only posting to your account, aka the “hit and run” strategy, would be a vital mistake when using Instagram to grow your business. You need to also interact with other users and reciprocate some of the love! Search and follow other accounts that are related to your industry (it never hurts to keep your eyes on what competitors are doing) and accounts you simply find interesting. Surf relevant hashtags as a way to find people who are talking about topics related to your business. These other accounts will begin to build a network of followers in return and help you keep a pulse on emerging trends.

Ignoring comments and interactions you receive

As with any social media platform, it is important to stay up to date with your interactions on Instagram. Ignoring comments or not responding in timely manner will do nothing to help you build a following of happy customers. And for people just stumbling upon your account, a lack of feedback to your comments will make you appear inactive or disinterested. Commit to being just as present on Instagram as you are on Facebook, Twitter, etc. Check in at least daily, not only to post content but to respond to interactions as well.

Missing a call to action – how can people learn more or buy your product or service?

If you use Instagram merely to post pretty pictures, you’re missing the real value it can add to your business. Every marketing tactic needs to have a purpose and a call to action; Instagram is no exception. Utilize your profile to include a link to your website or blog. Better yet, make it a link to a specific landing page that will take a customer directly to your most popular products or services. Because links are not “live” in the comments section on Instagram, it’s a real missed opportunity to not include a link in your profile. Also, be consistent with the call to action in your posts. Tell people to click on the link in your profile to learn more or to buy. Every post should relate back to your business or brand in some way. This doesn’t mean every post needs to focus on a hard sell, but your followers should be able to get a sense of what you represent by looking at just a few of your most recent photos!

How have you broken into social media marketing on Instagram for your business or brand? Have you made any of these mistakes? Share your thoughts by commenting below!

 

5 Mistakes New Businesses Make on Linkedin

This week we continue our 4-week series in which we cover the top 5 mistakes business make on the most popular social media platforms including Facebook, Twitter, Linkedin and Instagram. We invite you to subscribe and follow along each Monday for quick and valuable tips on how you can avoid making these mistakes and immediately improve your business’s social media presence. Enjoy!

---

Linkedin is a valuable, professional networking tool for building your personal brand, which is ultimately a reflection on your business. Because your profile represents you as a person, it’s all the more important to know what mistakes to avoid so that you don’t risk putting anything but your best face forward. Take a look at these five mistakes and learn how to avoid making them with your own profile on Linkedin!

Not reaching out and actively building your network

With any social networking site, actively reaching out to build connections with other people is an important part of successfully growing the value of your network. Don’t make the mistake of creating an account only to forget to reach out to contacts you know or have an interest in getting to know. Growing your network is as simple as this: send an invitation to connect with at least one new contact a day. Another great way to engage contacts and build your personal brand is to commit to participating in group discussions a couple times a week. Simply comment or ask a question, anything to start a conversation!

Reaching out TOO far and building your network with anyone and everyone
Now that we’ve talked about the value of building your network, it’s important to keep in mind that you can take this piece of advice too far. Trying to connect with everyone and anyone that Linkedin suggests will result in a ton of “false” connections that carry no value and merely clutter your contact list. Think about your goals and purpose for your personal brand. Aim to connect with contacts that you genuinely know or that align with the vision or your brand. When you go to search your contacts, you’ll have a meaningful list of professionals that can truly be of help to you.

Leaving outdated or incomplete content on your profile

In a world where change is constant, you want to remember to also regularly update your profile information to keep it accurate and relevant.  Whether your business moves to a new location or broadens its scope of service, it’s important to reflect these changes in your personal profile and on your business page on Linkedin.

Sharing your tweets or Facebook posts on Linkedin without formatting them specifically for this audience

Sharing the same content across all your social media accounts is problematic because each platform has its own features and limitations that call for a unique message. For example, Linkedin doesn’t limit you to 140 characters like Twitter, but it’s also not the best social media site for using hashtags. If you push your Twitter posts to Linkedin, it will be obvious you didn’t take the time to customize the content. Not only will this lose impact with your audience, it will also reflect that you’re not willing to put in the minimal extra time to customize your content in an effort to engage your contacts.

Not fully utilizing the power of long-form posts

The final, and possibly the biggest mistake people continue to make on Linkedin is not fully utilizing the power of long-form posts. You don’t have to have your own blog or be a skilled writer to publish meaningful content on Linkedin. In fact, this is a great way to get started! Rather than just sharing a link to your article or blog hosted on another website, you have the opportunity to increase the visibility of your content by publishing it directly to Linkedin. Your contacts can subscribe to your posts, comment on them and share with their network– all of which are powerful ways to increase your brand value, expertise and SEO.

What strategy have you used to build your Linkedin network and profile? Have you made any of these mistakes? Share your thoughts by commenting below!

 

5 Mistakes New Businesses Make on Twitter

This week we continue our 4-week series in which we cover the top 5 mistakes business make on the most popular social media platforms including Facebook, Twitter, Linkedin and Instagram. We invite you to subscribe and follow along each Monday for quick and valuable tips on how you can avoid making these mistakes and immediately improve your business’s social media presence. Enjoy!

---

5 Mistakes New Businesses Make on Twitter

No matter your business’s industry or specialty, a solid social media marketing strategy involving Twitter can produce positive and powerful outcomes. But in order to get the most out of using Twitter to build your brand, you need to know not only what to do, but also what not to do. Take a look at these 5 mistakes new businesses often make when using Twitter as part of their marketing strategy. 

Not sticking with one hashtag

Hashtags are one of the most powerful and efficient ways to share your information on Twitter; however, many businesses make the mistake of using multiple hashtags interchangeably instead of focusing their efforts on branding one.  Do your research! Choose a hashtag that isn’t already being used by another business and then use it consistently in your posts on social media and your marketing materials everywhere else. (Learn more about hashtag faux pas that should be avoided!)

Talking at their audience instead of listening and talking with them
When connecting with your audience through Twitter, you want to be sure your content comes across relatable and genuine. Don’t expect people to favorite, retweet or reply to a post if you don’t engage them. Remember the “What’s in it for me?” that people inherently want to find when reading content.  Post content that will spark a conversation rather than talking at them.  And when you do get a comment or share, be responsive! Aim to reply within the hour so that the conversation doesn’t go stale.

Letting their account sit stagnant

One of the biggest mistakes you can make on social media, especially with Twitter, is allowing your account to sit stagnant (i.e. going days or longer without posting fresh content). If you’re not interacting on a regular basis on Twitter, it sends the message that you’re not open for business or on top of your game. You wouldn’t open a new storefront and leave it sit vacant, right?  So when using your business Twitter account remember it’s a commitment to be present, reply, show interest, and interact!

Not formatting posts specifically for Twitter

What makes Twitter unique (and at times frustrating) is its limit of 140 characters per post. The intent is to encourage quick and concise sharing of information. For businesses using multiple social media platforms, this means you need to stop, think and format your posts specifically for Twitter as opposed to posting the same content you would on Facebook across every other social media site you use. Furthermore, you should be using hashtags and tagging fellow Twitter accounts, as appropriate, which is all the more reason to make your Twitter posts unique to this platform.

Being too “salesy” with Tweets

So often businesses think effective marketing is bombarding their audience with a hard sales pitch. While having a clear call to action is certainly a good thing, being too “salesy” will only turn off your customer base and cause your network to eventually tune you out completely. Instead, keep your brand top of mind and establish value by sharing helpful hints or information within your area of expertise. This will help you build both trust and a bigger following. The direct sales will result after you first put in the time to connect with your audience!

How have you navigated your small business strategy on Twitter? Have you made any of these mistakes? Share your thoughts by commenting below!

 

5 Mistakes New Businesses Make on Facebook

This week we begin a 4-week series in which we cover the top 5 mistakes business make on the most popular social media platforms including Facebook, Twitter, Linkedin and Instagram. We invite you to subscribe and follow along each Monday for quick and valuable tips on how you can avoid making these mistakes and immediately improve your business’s social media presence. Enjoy!

---

5 Mistakes New Businesses Make on Facebook

Social media is a powerhouse of possibilities that offers businesses and brands unique and ever-changing ways to reach their target audience. It goes without saying that one of the most popular social media sites for businesses is Facebook. This platform is constantly updating its inner-workings to be more appealing, approachable and beneficial for businesses, but you still have to have a basic understanding of Facebook’s tools, and how they align with your marketing goals, to get the most out of your time and money.

As with any type of technology, there is a learning curve, especially for businesses who may not be “tech savvy.”  This is all the more reason to invest the time into learning the essential dos and don’ts businesses should follow when beginning to build a professional presence on Facebook. For example, when setting up your Facebook account, remember to make your page a business page and not a personal or group page.

And this just only scratches the surface. Here are 5 examples of mistakes you should avoid when using Facebook as a business marketing site!

Not staying consistent with the tone and style of your brand

When marketing your business, it is important to remember to stay consistent with the look and feel of your overall brand. This is especially true when creating the content you post on your Facebook business page – as this may be the first and only way new customers experience your brand.

The best way to ensure that you’re remaining consistent across all of your marketing efforts is to compare what you’re posting on social media with the look and feel of your website, email newsletters, print marketing materials as well as the personality, values, and mission you want your business to convey. Check for consistency just like you would proof read a letter before sending!

Getting way too long-winded with your content
We live in a society of content overload. That, combined with our tendency to merely skim content before moving on to the next thing is all the more reason to keep your Facebook posts short and sweet. Don’t confuse your Facebook business page with a blog, or worse, a novel. Give your audience the reader’s digest version and pique their interest to learn more.

Then, provide a call to action so they can indeed learn more! Don’t miss out on the opportunity to share a link back to your website or provide more information on how they can order a product. Your followers are flooded with endless content in their newsfeed. In order to grab their attention before they keep scrolling, you have to catch them with compelling, and easy to absorb content, otherwise they’re on to the next thing.

Not responding to comments or complaints

As true for any business, quality customer service should be your number one priority. Just as it is important to respond in a timely manner to phone or in-person complaints, you definitely want to frequently monitor the comments and messages that come in through your Facebook business page for issues that may arise. No matter how they choose to contact you, your customers deserve timely and truthful responses.

Furthermore, a complaint is not always a bad thing! When addressed properly, you have the opportunity to show your entire audience that you’re a caring and proactive company that puts its customers first. Also with using Facebook as a networking platform, you should be prepared to respond to all comments to your posts, including people who have questions or merely want to offer feedback, as these are just as important as complaints.

Posting only content without any images or visuals

A common mistake businesses make when marketing their brand on Facebook is posting only readable content. One of the best ways to grab attention quickly when people are scrolling through their feed is by adding visual content. Accompanying your text with relevant and catchy graphics is an easy and fool-proof way to engage your followers to actually pause and read your content.

Not fully filling out your “about” information on your business page

One of the most simple, yet easy to make mistakes when creating your Facebook business page is not being thorough when completing the “about” information section. It is crucial to be as detailed as possible in your explanation of your business for several reasons. First, your Facebook page may be many new customers first impression of your business. You should have all the essential information here to greet them, just as you would on your website. Additionally, the more content you provide, the better search results you’ll achieve. Don’t miss out on showing up in someone’s search when they’re potentially looking for a business that offers what you provide! The bottom line is that you want to make it easy for your followers to understand what your business offers and what your niche is.

How have you navigated your small business strategy on Facebook? Have you made any of these mistakes? Share your thoughts by commenting below!