Shayna Balch was a guest blogger for the Phoenix Business Journal on April 21, 2015

It's no secret that the startup community is booming in Arizona. Recently named by Forbes magazine as one of the best cities to start a business, the Valley of the Sun is opening its doors to entrepreneurs from all industries. As with any new company, the "to-do" list for business owners can be extensive, including the hiring, managing and termination of all staff members. Before you open the doors for business, be mindful of the following HR challenges that could potentially wreak havoc on your newfound venture.

1. Not having the right policies in place

Having the idea of "I'll worry about it later" can lead to major setbacks when it comes to hiring and managing employees. Prior to bringing on any staff members, make sure that you are working with a well-versed HR professional to establish, in writing, complete job descriptions, attendance policies, vacation policies and any other policies that speak to what is expected of all employees, via a company handbook.

2. Not keeping proper records and paperwork

In order to stay out of the hot seat with the EEOC, DOL and NLRB, maintaining proper employee documentation is key. Prior to the employees' first day, confirm that they have thoroughly reviewed the employee handbook and signed documentation stating that they understand all company policies and procedures. Federal and state forms, such as I-9, W-4 and E-Verify, as well as a formal job application and insurance benefits information, should all be provided and recorded properly. Finally, should there be any changes to an employee's status or should he or she exhibit problems with performance, work with your management team to ensure that each instance is properly documented and kept on file.

3. Not hiring and firing smart

Finding great employees and terminating the bad ones can be a major burden for new business owners. From hiring the wrong people for the job to letting inappropriate behavior run rampant out of fear of potential litigation, employers face a multitude of challenges when it comes to proper employee recruitment and management. Prior to bringing on any new staff members, make sure you have a clear understanding of the employment laws that pertain to your size of business. Knowing what questions to ask during the interview process (and which ones not to ask), rules on background checks, and what types of termination issues could lead to litigation could save you a tremendous amount of time and money in the long run.

4. Having a "too small to matter" mentality

All companies, regardless of size, need to follow a variety of employment laws at the federal and state level. Not adhering to wage and hour laws, improper employee classification, inappropriate enforcement of sexual harassment/discrimination laws, and ADA accommodation issues tend to be the Achilles' heel for most employers. Whether you have 1 employee or 100, work with your legal team to establish that you are following all labor and employment laws that apply to your size of business.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.