Starting a new business can be appealing. There are an estimated 32 million small businesses in the United States. Every business, even the largest and most prosperous companies, started somewhere. If you have a good idea or product, an entrepreneurial spirit, and a desire to succeed, you are on the right track for starting a thriving business. While you may be an expert in your field, it is important to seek out legal guidance to ensure that you put your new business on the path to success. Read on for tips on startup success.
The Road to Startup Success
Seek Funding
Every business needs the capital to begin operations. You will need plenty of money at startup because you are beginning your business without any current income. Now is the time to properly prepare for the funding you require. At first, you are likely to have friends and family members who are willing to invest in your business. As your business begins to take off, you will also need some venture capital investors.
As you seek funding, make sure that you do not inflate the value of your company or underestimate the risk to investors. Make sure that you have an investment contract. This is a legal document between two parties where one party provides money for a common enterprise with the expectation of receiving a profit. Investment contracts are governed by the Securities and Exchange Commission (SEC) under the Securities Act of 1933, and others. You must take care to follow all the laws and regulations that apply to your business.
Build Relationships
Mentors and advisors are important relationships to help you in the early stages of your new business. Mentors are helpful in guiding you through some of the experiences you will face and teaching you how to deal with matters that arise in a way that is beneficial to your business. You can learn a lot from your mentors and they will help prevent you from taking a path that is detrimental. In addition to mentors, you will also want to partner with a legal advisor early on in your business venture. Legal mistakes can be costly and they can also cause your business to fail. Prevent legal problems now and down the road by properly addressing legal issues upfront.
Review Contracts
Contracts are necessary in almost every aspect of your business. Whether you are initiating a contract or are asked to sign one, you should always get the document reviewed by an attorney. Negotiation is a big part of a fair contract and one that you should not overlook. If a contract is not fair to both parties, it can cause difficulties for your business. Do not make any verbal contracts; always put the agreement in writing. A contract is not necessarily binding unless both parties understand and agree to the terms. Your attorney will make sure that any contract you require is properly drafted to make sure it’s enforceable.
Negotiate Leases
While you may be tempted to purchase property where you will operate your business, that may not always be the best decision. Before you choose to rent or buy, you should review your options with an attorney. If you are planning on leasing space, make sure you negotiate the lease to ensure that you can meet the requirements. If your business is brand new, you may want to lease a space on a month-to-month basis. That way, if your business is not making a profit, you can terminate your lease with few if any penalties. Before you sign a lease or purchase agreement, have your attorney read the document and negotiate any additional terms necessary.
Protect Your Brand
You will expend a lot of time, energy, and money on your brand, so you need to take steps to protect it. You need to register the name of your business and your logo. Before you choose and register a business name, make sure to check that it isn’t already registered to another business. Take the legal steps required to register your business name. You will also want to protect your intellectual property. One way to safeguard your proprietary business data is with an employee intellectual property contract or clause. You will also want to make sure to protect your training investments with employee contracts as well.
Follow the Law
There are many local, state and federal laws in place that pertain to businesses. Obtain the proper business licenses and permits and register your business. The type of business structure you choose will help to determine the laws that you must follow. Different structures have different requirements. You want to choose the structure that meets your needs without jeopardizing your personal property or assets. An experienced attorney will assist you through the early stages of your business to help make sure you comply with the law and protect your company in the future. To get the legal help you need, contact Omni Law PC. today to request a consultation at (323) 300-4184.
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