These are the top most mistakes that early stage startups usually end up doing with.
Entity: They fail to decide what sort of entities they want to start like a sole proprietor or partnership firm or a company. Then the initial investment or the capital amount required for it.
Founders’ Agreement: If in case the entity is other than a proprietorship, they fail to have a proper agreement between the partners/co-founders/directors. Any entity needs to have a formal agreement in place between all the founders of the business as early as possible.
IP: They fail to protect the intellectual property of the business. Intellectual property is one of the most valuable assets a company owns. The Intellectual property of a firm includes Patents, Trademarks, Copyrights, NDAs (Non-Disclosure Agreements), Invention Assignments.
Employment contract: They fail to have proper employment procedures. Employment is a very common area where inexperienced startup founders make mistakes. There are a lot of issues you should think about before hiring someone.
And finally they fail to hire a lawyer.