T. Randolph Catanese, Esq. © 1998
Mistake No. 3 - The Business Is Started Without Any Professional Advice. Because I am a Los Angeles litigation attorney, you probably expect me to say that you must always see an attorney before you start a new business venture. And, you are right, I agree. But it is not just the attorney that someone needs to see. Anyone contemplating the operation of a new business or existing business should also seek the advice of a competent accountant or financial planner.
Most businesses are doomed to failure before they even start because they did not have a good, comprehensive business plan including sound financial assumptions. Lawyers generally are very good at providing organizational and structural advice, but it is the financial people who are best able to provide the budding business entrepreneur the appropriate advice for starting the new business, including any planned business loans. Moreover, it would also behoove the new business or existing business owner to seek out the advice of a consultant in whatever particular business the party contemplates entering. For example, someone who has a good idea for a restaurant should certainly seek out the advice of a restaurant consultant before they begin the venture. It is well known that most restaurants do not succeed and there is a reason for that - competition. A restaurant consultant will help in resolving the issues of competition and why the restaurant would succeed versus another one.