The Costly Mistakes of DIY: Why Small Business Owners Should Invest in Professionals

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The Costly Mistakes of DIY: Why Small Business Owners Should Invest in Professionals

Jan 11, 2024

Running a small business is a challenging task. It requires dedication, hard work, and juggling multiple responsibilities. Often, small business owners try to cut costs by taking on tasks themselves, even if they are better off calling a professional. While the intention may be to save money, the reality is that DIY can lead to costly mistakes and legal pitfalls. Let's explore the common mistakes small business owners make when they opt for a do-it-yourself approach and why investing in professionals like lawyers, accountants, and general contractors is crucial for long-term success.

The Myth of Saving Money

Many small business owners believe that handling tasks themselves will save them money in the long run. However, this is often a misconception. While it may seem cost-effective initially, the lack of expertise and knowledge in critical areas can lead to costly mistakes that can ultimately hinder the growth and profitability of a business.

The Value of Professional Services

Professional services, such as lawyers, accountants, advisors, and general contractors, bring expertise, experience, and a deep understanding of industry regulations. They can provide valuable guidance, prevent legal issues, and help small business owners make informed decisions that align with their long-term goals.

Most of the time, business owners don't consult with their advisors because they are wary of spending money on bills from their advisors on top of other expenses. The phrase "You can pay me now, or really pay me later" comes into play in these situations. Business owners should not be afraid to discuss money and bills from professionals with their advisors, and they should properly compensate advisors for their time. Complaining about spending a few thousand dollars to review a $20,000,000 contract can cost hundreds of thousands due to difficult payment and dispute resolution terms.

Protecting Your Intellectual Property

Intellectual property (IP) is a valuable asset for any business. Failing to protect it can lead to brand confusion, loss of revenue, and legal battles. Trademarks, copyrights, and patents should be filed appropriately and protected to ensure exclusive rights to your brand name, logo, or product design.

How Professionals Can Help

Lawyers specializing in intellectual property can guide small business owners through filing the necessary documents and paying the required fees.
They can conduct an IP audit to identify and protect essential assets, develop IP protection strategies, and enforce IP rights if violations occur.

Misclassifying Employees

Misclassifying employees as independent contractors can have severe legal consequences, including fines and legal battles. Understanding the legal definitions of each classification is crucial to ensure compliance and avoid potential penalties.

How Professionals Can Help

Employment lawyers can provide guidance on proper employee classification based on IRS guidelines and other labor laws.
They can assist in drafting employment contracts and ensuring compliance with labor regulations.

Failing to Comply with Labor Laws

Small business owners must comply with labor laws, including minimum wage, overtime pay, and worker safety regulations. Failure to comply can result in litigation and financial penalties.

How Professionals Can Help

Employment lawyers and HR consultants can help small business owners understand and comply with labor laws, develop policies and procedures, and conduct regular compliance audits.

Not Having Proper Contracts

Contracts are crucial for establishing and maintaining business relationships. Failing to have legally binding agreements can lead to legal disputes and financial losses.

How Professionals Can Help

Contract lawyers can assist in drafting contracts that outline the terms and conditions of business relationships, ensuring clarity and protection for all parties involved.
They can review existing contracts and advise on necessary amendments or updates to ensure legal compliance and protect business interests.

Not Obtaining Necessary Permits and Licenses

Depending on the industry, specific permits and licenses may be required to operate a business legally. Failure to obtain these permits and licenses can lead to fines, legal battles, and even business closure.

How Professionals Can Help

Lawyers specializing in business regulations can guide small business owners through obtaining the necessary permits and licenses, ensuring compliance with local, state, and federal requirements.

Finding the Right Professionals

Finding the right experts for your business needs is essential when seeking professional services. Research and choose professionals with expertise in your industry, a track record of success, and a reputation for providing quality services.

Building Long-Term Relationships

Investing in professionals is not just a one-time affair. Building long-term relationships with your chosen professionals is crucial to reap the full benefits; this allows them to understand your business in-depth, provide ongoing support, and adapt their services as your business evolves.

Prioritizing Professional Services in Your Budget

Small business owners often prioritize cost-cutting measures, but investing in professional services should be essential to your business budget. Allocating funds for legal, accounting, and contracting services ensures you have the expertise to navigate challenges, prevent costly mistakes, and drive long-term success.

Small business owners should avoid the temptation of DIY in critical areas of their businesses. While it may seem cost-effective initially, the risks and potential consequences of making costly mistakes outweigh the short-term benefits. By seeking professional help, small business owners can protect their intellectual property, comply with labor laws, establish proper contracts, obtain necessary permits and licenses, and ensure their businesses' long-term success and sustainability. Remember, the cost of professional services is an investment in the future of your business, not just an expense to minimize.

Connect With The Alexander Group

A group of individuals with similar goals is vital to a small business owner. Our group of Greater St. Louis area business owners collaborates, discusses everyday issues, and develops dynamic solutions. When business owners pair this with our one-on-one coaching, they set themselves up for success.

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What Small Business Owners Need to Know About Email Authentication Requirements

08 Mar, 2024

Have you been having trouble sending out bulk emails and email blasts recently? Are you suddenly having deliverability issues with clients and vendors you've been emailing for years? If so, you're not alone — Google and Yahoo rolled out new DMARC requirements in February, creating headaches. We have heard that many of our small business owner clients and their IT departments are having such headaches. To investigate this issue, we have leaned on IT expert and long-time TAG peer board member Fred Moore of Moore Computing. Fred has walked us through changes to DMARC and offers advice on how small business owners can get their emails back into the inbox. While DMARC changes have thrown many into a temporary tailspin, the changes represent a move to safer and more secure email communication for all parties. Let's discuss what small business owners need to know about DMARC, how they can ensure their emails reach customers' inboxes, and how to keep their business digitally secure. What is DMARC? Cybersecurity measures are similar to cars: most of us drive one daily, but most are unable to lift the hood and understand exactly how it runs. Most of us rely on cybersecurity measures to keep our businesses safe online, but we may need help understanding the technical elements that keep us safe. That said, all small business owners should have a general background in cybersecurity, and DMARC is a great place to start. DMARC stands for "Domain-based Message Authentication, Reporting & Conformance." The idea behind DMARC is to limit the volume of scams and phishing on the internet. DMARC works with SPF and DKIM. SPF (Sender Policy Framework) is a list of services and servers that are authorized to send emails on behalf of your domain, and DKIM (DomainKeys Identified Mail) is a digital seal that verifies the content of your email hasn't been altered or tampered with. DKIM is also able to withstand email forwarding, whereas SPF can not. Senders and Recipients At its core, DMARC validates the authentication of the sender of an email message. When there are deliverability issues with a message, it usually falls back on the sender. Small business owners know the importance of getting marketing campaign emails and other communications into their customers/clients' inboxes; to accomplish this, it is crucial to follow all protocols to ensure you have the best chances to reach customers' inboxes at an optimal place (i.e., not the spam folder), and avoid spam complaints. How does your email make its way to recipients? It follows a basic flow: ● The email is composed and sent ● The sending mail server will add DKIM ● The email is sent to the recipient's server ● Validation tests begin, checking DKIM, SPF, and DMARC policies ● The email either passes, is quarantined, or is blocked/deleted ● If the email passes, it goes through the recipient's user filters and inbox rules

What Business Owners Can Learn From Al Pacino’s Locker Room Speech in “Any Given Sunday”

09 Oct, 2023

In the 1999 film “Any Given Sunday,” directed by Oliver Stone, Al Pacino delivers a powerful and memorable locker room speech that has resonated with me for years. The speech, delivered by Pacino’s character, Tony D’Amato, before a crucial football game, encapsulates the essence of the film and the themes it explores. While the speech is specifically about football, its underlying message can be applied to various aspects of life, including business. The idea of fighting for inches, continuously improving, and eliminating mistakes is a powerful metaphor for the importance of perseverance and adaptability in business. It highlights the value of small victories, incremental progress, and the relentless pursuit of excellence. For business owners, the speech serves as a reminder to focus on the details and the small wins that can accumulate over time. Just as a football team must fight for every inch on the field, a successful business must be diligent in managing its resources and seize every opportunity for growth. It emphasizes the importance of building a team that shares the same values and is committed to continuous improvement. Think of it in terms of all the inches and seconds around us in business and how $200 here and $50 there adds up. The whole concept of continuous improvement, eliminating mistakes, and fighting to get better is what I believe Oliver Stone intended when he wrote it. I love it as much today and as when I first saw it and the metaphor of getting into business and being profitable. You can read the transcript here . Or watch it here:

Changing the Channel: Marketing In a Post-COVID World

11 Aug, 2023

The business world is constantly changing, but the acceleration of change has dramatically increased over the last three years. Everything from business models to staffing to workflow was shaken up – and marketing is no exception. Small business owners know that no matter how strong their product or service is, they won't cut through the noise in a crowded environment without solid marketing tactics. However, unlike larger businesses, small businesses have less margin for error regarding marketing. They typically have smaller budgets, one or two marketing people on their team (if that), and more to lose reputation-wise if a marketing move goes wrong. We're here to help our small business leaders think through tangible marketing ideas that will keep their businesses succeeding without extra hassles. Let's examine a few. More Channels, New Channels As we've reached 2023, there's been an increase in the number of channels customers can use to interact with companies. Harvard Business Review cites this increase as 61% of companies reporting increasing the number of channels they now use. B2C leads channel increases, but B2B isn't far behind. A vital facet for business leaders to consider is that while there's the option to expand to new channels, which channels will be most fruitful and keep the brand image intact? For instance, your business could start a text campaign for customers and allow them to text back questions. You should consider whether you will have the staff time to answer these questions and if your customer base prefers texting over phone calls, emails, or your typical communication channels. Don't Discount Face-to-Face Opportunities Face-to-face (F2F) opportunities are still in demand, even in our digital world. Because the average consumer is exposed to so many advertisements daily, F2F experiences can become more memorable than all the digital clutter. Potential customers/clients may be more likely to remember a F2F conversation they had with someone than a series of ads they saw online. With in-person events in full swing, many small businesses are embracing trade shows, conventions, and other industry events. These channels are excellent for meeting potential clients and customers and networking with industry experts. While these events require time, money, and travel, they can pay off significantly with the connections made throughout the events. Another way to lean into F2F experiences is through customer appreciation events. These events could be anything from an informal happy hour or barbecue to a more formal open house function. When planning these events, consider inviting customers, suppliers, employees, community members, and anyone else interested. Don't discount the power of word-of-mouth – even if a prospect attends an event and doesn't end up working with your business; if they have a pleasant experience at the event and share that with their friends, you can still get traction from that interaction.