There’s no doubt that starting the journey with a small business is an exciting process. However, there are many new responsibilities that need to be considered before even starting to turn the key. One of these is the legalities surrounding your business, and how to protect it from any potential risks. Enter the business lawyer.
These individuals help their clients understand all of the legalities surrounding your startup, from operating agreements to reducing liability. They will also be able to offer advice on a range of other legal issues, such as intellectual property and employment law. In short, a business lawyer can be a valuable asset in ensuring that your startup is on the right track legally by following codes and guidelines.
How Business Lawyers Can Help Startups
Here are just some of the ways a business lawyer can save your startup, explained in more detail.
- Licensing requirements- Every business needs to be licensed in order to operate legally. A business lawyer can help you to navigate the process of obtaining the necessary licenses, and can also advise on any compliance issues that may arise.
- Operating agreements– If you are starting a business with one or more partners, it is essential to have a well-drafted operating agreement in place. This document has the purpose to set out roles and responsibilities of each partner, as well as what happens with profits and losses. A business law attorney can help you to put together a comprehensive operating agreement that will protect interests should a dispute occur.
- Reducing liability– One of the main risks faced by startups is exposure to liability. What does liability mean? It essentially refers to the legal responsibility of a person or company for damages that have been caused. A business lawyer can help you to reduce your liability exposure by putting in place appropriate contracts and policies, such as non-disclosure agreements and employee handbooks.
- Risk Identification- A good business lawyer will also be able to identify any other potential risks that your startup may face, and can offer advice on how to mitigate these risks.
- Funding- Having enough capital is perhaps the most important factor in ensuring the success of a startup. A business lawyer can help you to identify and secure funding from sources such as angel investors and venture capitalists.
- The right personality– These individuals are highly educated, are clear communicators, and understand both the law and business. Startups are looking for someone who they feel they can trust with their ideas, their money and the future of their company.
A business lawyer is an underrated part of any startup. If you are considering starting a business, be sure to consult with a business lawyer to ensure that your legal bases are covered. One common blunder many new business owners make is having the assumption that nothing bad can happen to them, so they don’t need to worry about things like liability and contracts. Unfortunately, this is not the reality. The truth is, anything can happen, and it’s always better to be prepared. Up to 20 percent of new small businesses fail, but the odds of success can be much better with proactive measures put in place.
Legal Help Is A Significant Investment
Although the beginnings of a startup can get expensive and you’re often in the red at the beginning, forgoing legal assistance is not an option. The long-term success of your startup will be significantly increased by ensuring that all legal bases are covered from the outset. Below are two excellent reasons why you should invest in this type of legal protection.
- The right legal advice is available- Just like anything else you’re considering investing in, you have options. Don’t take the first lawyer that you consult with. Research, interview, and find the perfect business law firm for your needs much in the way you would any other critical hire for your startup. You’ll also be able to find one that meets your needs in terms of budget as well.
- The stakes are high– The legalities of starting and running a business are complex, and the consequences of mismanagement can be severe. By investing in a business lawyer, you can be confident that your startup is on the right track from a legal perspective, and that you are doing everything possible to protect your interests.
As you can see, there are many ways in which a business lawyer can save your startup. If you are about to embark on the journey of starting a small business, make sure you have the right legal team in your corner. It could be the best investment you ever make.