Make mistakes and learn in the process – while this may be good life advice, it does not entirely hold true when it comes to starting a business in Michigan. Mistakes are a part of forming a business so long as it is negligible, but if it can alter the course of your entire operations, it cannot be good for business.
There are deadly and lethal mistakes when starting a business, from the Michigan incorporation process up to completing your tax obligations and hiring employees, anything could go wrong.
This guide points out the five mistakes that can most likely occur as you start forming your business. It aims to keep you informed of the likely scenarios you might encounter, and helps paint a picture of what can happen if you make this mistake.
While you may be able to operate a business without paying your tax obligations or getting the necessary business licenses in Michigan, you can be assured that this will be very short-lived. Whether you have overlooked your Michigan business taxes purposely or unintentionally, the ramifications can be damaging.
Not only are there an assortment of penalties and fines, but license suspension or even worst, you might be requested to halt business operations until the state says otherwise.
Remember, regardless of your business nature or how busy you may be, take time to take care of all your tax and license obligations. You can refer to our Michigan Business Taxes guide and Michigan Business Licenses guide for starters.
Getting excited over your business location is one thing, but choosing the wrong Michigan business location because of your excitement is a big no-no. Do not rush into things when it comes to choosing the location when starting a business in Michigan.
Instead, make a checklist of the specific criteria that you’re looking for in a specific location. You should keep in mind that the location you choose will be the cornerstone of your business so make an informed decision. You can look into this guide to have a better perspective in choosing the right location.
Writing a terrible business plan because you don’t know how to do it properly or just because you don’t know how is a surefire guarantee to business failure.
A business plan lays the foundation of achieving business goals so writing a terrible plan translates to a terrible business.
Writing a business plan should be serious business because it maps out how business achieve goals and move forward towards future progress. Learning how to write a business plan properly can be learned. Start off by using LivePlan to point you in the right direction.
Choosing the wrong business structure (LLC, Corporation, DBA, etc.) because you are not well informed of which structure suits your business requirements best can cause a ripple effect that will resonate even until you are already in full business operations.
Incorporating in Michigan with the wrong structure is suicide for your business.
The people behind your business are its driving force. When you hire the wrong employees, having to divide your time between running and scaling your business and monitoring your employees can be exhausting.
If you want to succeed when starting a business in Michigan from the get-go, you must hire the right people to help you get started.
There are many pitfalls when you’re in the process of how to start a business in Michigan. Mistakes can occur at various stages, whether it be at the Michigan incorporation process or the employee hiring phase. One thing that you should always remember though is that knowledge is power.
If you are well informed and have a better grasp on your business, you will be able to avoid this. As an entrepreneur, you must know what you do to avoid these pitfalls and bring your business to success right at the beginning!