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Bryan E. Kuhn
Counselor at Law, P.C.
Business & Employment Law Attorney

Why a new company may not make it

Entrepreneurs in Colorado may have a hard time maintaining profitability or steady growth when running a company. In fact, it is difficult to keep a company going for more than a year as only about 20 percent of businesses survive that long. While there are many reasons why a company could fail, there are a few main causes that startup owners should consider before beginning operations.

It is important to plan for failure or something to go wrong while operating the business. For instance, a company that grows faster than expected may achieve limited growth because there isn’t enough money or space to fulfill orders. Businesses may also fail because they don’t consider working with the competition when it makes sense to do so. In some cases, a competitor could provide a referral or other assistance in completing a deal.

Business owners should know who their ideal investors or clients will be. This makes it easier to take the right deal instead of the first deal that they find. While this strategy may result in lost business at first, it could result in steady growth over the long run. To increase the odds of attracting partners or clients, it is imperative that a company chooses the right name. Ideally, it will be catchy and do a good job representing the brand.

There are many legal issues with growing a business that an owner may need to consider. For instance, it may be necessary to obtain trademarks or defend copyrights. Contract disputes with vendors, partners or other parties may also limit the potential for a new business to reach its full potential. However, an attorney may be able to help with these issues by assisting in settlement talks or at trial if a matter goes to court.

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Bryan E. Kuhn, Counselor at Law, P.C.
1660 Lincoln Street Suite 2330
Denver, CO 80264

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