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Business Law AttorneyStartups are a good way to capitalize on your investment, but you must tread carefully when it comes to conveniently funding your startup. Funding for new startups flows more freely than ever, but at the same time – the multitude of startup ventures keeps the market in a stable competition for growth and market share.

Even if you have a great idea for the perfect product or service the market needs, you may have different ideas on funding options – which makes you clueless about how to fund your business venture.

Don’t fret, because here we will share the most common mistakes you should avoid while funding your startup.

Sticking to Limited Funding Options

If you are relying on traditional funding and investment for your startup, you should consider exploring more options. Apart from going to the bank and asking for a loan with overwhelming interest, why not try the Internet and crowdsourcing. Companies such as PayPal are offering programs like PayPal Working Capital, which provides funding for new startups with low interest rates.

Incorrect Estimation of your Expenditures

The most common mistake startups have is underestimating their overall expenses – particularly for the first six months. The incorrect estimation generally makes startup owners believe they have plenty of capital left, but the reality is they don’t. Make sure you speak with a competent contracts and business transaction lawyer before deciding to choose various funding contracts for your startup.

Insufficient Financial Planning

The most essential part of starting a new business is to plan everything effectively and meticulously. Financial planning is the most basic element of a successful startup. Unfortunately, several startups have failed due to a lack of financial planning. If you expect a multi-pronged growth, its essential to see the bigger picture and avoid taking the backseat when it comes to financial planning.

Giving Too Much Power to Your Investors

Investors are no doubt the most essential part of your startup, but giving them too much power will eventually lead you to lose your own company. To keep a hold on your startup, you must consult with a seasoned business formation lawyer with years of experience in developing bylaws that protect you and your interests.

If you wish to get further information regarding business formation, contracts and business transaction or any other business law, contact the offices of John Grundy at 330-637-9030 to schedule a free consultation session with an experienced business law attorney.