Before you dive into launching your dream business, it’s important to avoid these five critical mistakes that many entrepreneurs overlook. Let’s jump right in:

Mistake 1: Not Securing the Domain Name First

Imagine this — you come up with a brilliant business name, print business cards, launch social media pages, and then find out the domain name is already taken. With over 270 million domains registered globally, you can't afford to delay.

Tip:
Before you announce your business name, buy the domain name immediately. Always register it yourself to keep full ownership and control. This small step could save you a lot of trouble later.

Mistake 2: Not Registering Your Trademark

Owning a domain name does not protect your brand legally. A competitor can still use your name if it’s not trademarked.

What you should do:

• Register your word mark (the name itself).
• Then register your device mark (your logo or branding elements).

Pro tip: Register the trademark in your own name first. This ensures that you personally hold the rights, protecting you even if the company faces issues later.

Real Story:
One of our clients invested millions into launching a real estate company — only to discover, too late, that a similar brand already existed. Their trademark application was rejected, leading to massive losses. Don't make the same mistake!

Mistake 3: Choosing the Wrong Business Entity

Should you go for a Private Limited Company, LLP, Partnership, or Sole Proprietorship? Many entrepreneurs jump in without considering the legal and financial implications.

Quick guide:

• Private Limited Company: Best for startups seeking investment and scalability.
• LLP (Limited Liability Partnership): Good for small businesses wanting low compliance.
• Sole Proprietorship: Easy to start but risky, as your personal assets are exposed.

Choosing the wrong structure can result in unnecessary taxes, legal headaches, and personal liability. Make an informed decision!

Mistake 4: Not Creating a Founders’ Agreement

Co-founder disputes can destroy even the most promising startups.

Famous Example:
In the early days of Facebook, Mark Zuckerberg co-founded the company with several classmates, including Eduardo Saverin. Due to a lack of clear agreements, internal conflicts led to messy legal battles and broken relationships.

Why you need a Founders’ Agreement:

• Define roles, responsibilities, and decision-making powers.
• Plan equity splits clearly.
• Outline what happens if someone exits.

Protect your business and friendships by putting everything in writing early on.

Mistake 5: Not Having an Exit Strategy

Starting is exciting, but what if you or your partners lose interest later? Having an exit strategy from Day One ensures a smooth transition, whether you sell, shut down, or bring in new leadership.

Real Example:
The founders of Tinder faced bitter disputes due to a lack of equity and exit planning. Legal battles followed, draining time, money, and energy. Avoid this fate by setting clear exit terms early.

Final Takeaway

Before you launch your business, make sure to:

• Secure your domain name.
• Register your trademark the right way.
• Choose the correct business entity.
• Have a legally binding Founders’ Agreement.
• Plan your exit strategy from the start.