Tue 29 Sep 2015 | By:

5 Mistakes When Starting a Business in California

Mistakes When Starting a Business

Entrepreneurs are always in for a challenge when starting a business in California. Whether it’s as early as a defective business plan, not knowing how to choose the right structure for California incorporation, or even as simple as overlooking permits, tax requirements, and licenses, a lot of mistakes can be made along the way of starting a business.

These mistakes may look simple enough, but it can actually impede your business from moving forward. Here are the five common mistakes of starting a business in California and provide alternatives so you won’t make them.


Mistake 1) Forgetting to Take Care of California Business Tax and License Requirements

Business LicensesWhile it is one of the most important requirements when starting a business in California, this is also one of the most overlooked. Failing to take care of business licenses in California is a big no-no because your existence as a business depends entirely on it.

Also, failure to comply with California business taxes can negatively impact your operations as well to the extent that your business might be forced to close down. Completing these requirements may be hard work, but you can use our California Business Taxes and Business Licenses Guide to start off with.


Mistake 2) Selecting the Wrong Location for Your California Business

How to Choose a Business LocationChoosing the wrong location when starting a business in California can have a direct influence on the level of success of your business.

Don’t just instantly pick the first one that caught your fancy, then you should be worried. Avoid this big blunder at all cost when it comes to your California business location, and find the right one by being thorough and thoughtful.


Mistake 3) Writing an Appalling Business Plan

Write a Business PlanWriting a business plan that is appalling and terrible is something short of not writing a business plan.

If you’re writing a terrible business plan, then you might want to go back to the drawing board. A business plan is a game plan for your business. Following the wrong game plan means you’re more likely to fail. Learn how to write a business plan that is both effective and concise with the help of LivePlan.


Mistake 4) Choosing the Wrong Business Structure and Incorporating your California Business with It

Business WebsiteA common misconception that could impact the growth of one’s business is the disregard for choosing the wrong business structure and incorporating in California with it.

No matter which way you look at it, choosing the wrong business structure could lead to some issues in the future. It’s important that you weigh your options, choose the right business structure and incorporate in California using the links below:


Mistake 5) Hiring the Wrong Employees

25 Questions You Need To Ask When Hiring An EmployeeHiring employees can be an arduous task as a new entrepreneur especially when you’re still starting a business in California, and more often than not, small business owners tend to make the mistake of getting the wrong people for your business.

You must remember though that employees are an integral part of your business, and as such, you need to find the right people to help you grow that business. Modify your hiring process, and ensure that you’re getting the best people out there for your business.


Wrapping Up and Moving Forward

There are many lessons that should be learned on how to start a business in California, from the California incorporation process to hiring the right employees. Take note of the mistakes mentioned above, avoid them at all cost, and you should be good to go when starting a business in California!

About Liesha Petrovich

Liesha is a small business owner of 20 years, host of Startup Savant, the owner of a karate dojo in Maine, and creator of Work Mobly. During free time she's with her family and working on a Doctorate in Entrepreneurship.