When working in a startup and raising your fresh ideas from the ground, it can be easy to get caught up in the excitement. However, under no circumstance should you neglect or postpone the legal aspect of building a new company. Here you will find valuable tips to help you stay on top of everything, which will avoid problems and save money down the line.
- Have every single contract in written form
Drafting contracts where everything is clear for all parts involved is key. This will help you avoid misunderstandings that could end up in costly processes. The best thing you can do for employees, service providers, and for yourself, is ensuring every aspect involved in the job or transactions is crystal clear from day one. Transparency with the people you are employing or who are providing services for you is essential for operations to run smoothly. Written contracts are the most effective way to achieve this transparency and avoid misunderstandings.
2. Get the right lawyers for each issue you need to take care of
Law firms tend to specialize in particular areas and branches of the law. Hiring the right one will save you time and money, and will ensure that the lawyers know what they are doing. For instance, while a firm that specializes in criminal law can help you stay clear of sticky situations, perhaps it is not the best option for procedures like drafting contracts. Consulting lawyers who are experts in whatever you need is the best way to get the quickest and smartest solution.
3. Make sure your operations are following legal requirements
For this one, you may also need to consult with a lawyer. Do your homework beforehand and be sure to be within the legal framework of wherever you are operating. You do not want any trouble down the line because you did not do your research and find out, in what will most likely be an unpleasant manner, that your operation is not fully legal. Check regulations within the industry you are looking to enter and in the area or areas where your operation will run. If, for instance, you are planning on shipping a product internationally, make sure your product can legally enter every country where you intend selling. Again, this process is best done by experts, so look for a law firm in your area that can help you figure this one out.
4. Protect intellectual property
The issue with great ideas is that some people might try to steal them. Use every resource available and protect whatever it is you are bringing to the market. This may represent spending time and money in processes that may not seem necessary in the beginning, but protecting your work will be critical for your success. Try to see the bigger picture and look for the most effective ways to protect whatever it is you are creating.
5. Do not avoid legal disclaimers
While disclaimers might not come across as attractive, especially from a marketing perspective, they are absolutely necessary for saving you time and money in the long run. A properly drafted disclaimer will protect you from potential lawsuits from unhappy clients, for instance. You do not have to look at disclaimers as a means to cheat your customers: quite the contrary, think of them as a tool to clarify what your product can and cannot do, or what the service you are providing consists of.
The legal component of building a startup is one of the most important ones. Do your research. As your company grows, doing everything right from the beginning will save you time and money.
