Common Issues When Starting a Small Business

man and woman sitting in cafeteria discussing finance for the monthOne thought comes to your mind. What if you start your own small business? Starting a business can seem like a lot of fun, but starting a business comes with many issues and responsibilities. Many small businesses make mistakes that can cost them money and possibly their business and reputation. Here are some of the most common issues that can arise when starting a small business.

Common Issues in Small Businesses

When you start a business, there are many legal issues that you can run into. Some of these common business problems include licensing, trademarks, employee termination, misclassification, shareholders’ agreements, overtime disputes, and litigiousness.


In this country, states require businesses to have specific licensing to operate legally. Without the proper licensing, you, as a business owner, could end up with large fines to pay. These fines can get expensive, putting you at risk of losing your business. You can avoid these expenses and save your business by adhering to the licensing requirements for your business.


Many businesses have trademarks that are legally protected under intellectual property rights. A new business owner must do extensive research to ensure they come up with a name, products, and services that do not infringe on another business’s trademarks. Whether it was a mistake or intentional, trademark infringements can have huge legal consequences.

Shareholders’ Agreement

Sometimes a business does not work out and gets split up or sold. Make sure to have an agreement in place for shareholders in your business. If there is not one, legal battles might take place. Contact our business attorneys to form an agreement with your shareholders if you still need to get one.

Business Planning

Business planning is essential for the success of any small business. Yet, it is one of the most common issues encountered by entrepreneurs starting small businesses. One of the primary reasons for this is that many new business owners are unaware of the importance of business planning or how to create an effective plan.

Starting a small business requires a significant investment of time, money, and effort. Without a clear plan, it can be challenging to determine how to allocate these resources effectively. A well-thought-out business plan can help entrepreneurs identify their goals, create a roadmap to achieve them and allocate resources to maximize their potential for success.

Insufficient Capital and/or Cash Flow

Insufficient capital and cash flow are common issues that many small businesses face, especially in their early stages. Simply put, capital is the money a business uses to start and run its operations, while cash flow refers to the money that flows in and out of business over time.

Starting a business requires significant capital to cover startup costs, such as equipment, inventory, marketing, and legal fees. Without enough capital, a business may struggle to get off the ground, which can lead to missed opportunities, lost revenue, and even failure.

Hiring the Right Employee

Hiring the right employee is crucial for any business. But it can be particularly challenging for small businesses that are only starting. There are several reasons why this is a common issue.

  • Small businesses may not have a well-established brand or reputation, making it harder to attract top talent. 
  • Small business owners may not have much experience with the hiring process or may not have a clear idea of what they are looking for in an employee. 
  • Small businesses may not have the luxury of making mistakes when it comes to hiring. Hiring the wrong person can be costly, both in terms of time and money and can impact the business’s growth and success.

To address this issue, small business owners need to be strategic in their approach to hiring, clearly define job requirements and expectations, and be willing to invest time and resources in finding the right person for the job.

Protecting Your Small Business With the Help From Our Attorneys

It is never a good idea to rush into a legal conflict. If you rush in, it can lead to legal fees that can add up very quickly. Your best bet is to find a way to negotiate and try to settle it as soon as possible.

If you are looking to prevent some of these issues in business startups, you can find help with our attorneys. Here at Braverman Kaskey Garber, we do our best to provide legal help for businesses in Pennsylvania. Give us a call to set up an appointment with our business lawyers. We can help you and your small business the right way.