In Part I of this blog, we explained three ways a business attorney can help you through the arduous startup process. Many entrepreneurs make a major mistake in building their company right from the start by trying to do everything themselves. There are numerous benefits to hiring a business lawyer right from the start.
Here are three more ways a business attorney can help your company with the startup process:
There are a wealth of contracts that your company will have to utilize, and others that your company really should utilize, during startup. This could include detailing the terms of ownership or partnership if there is going to be more than one owner, employee contracts like invention assignment agreements, confidentiality agreements, non-solicitation agreement, and noncompete agreements. In addition, many business should consider their agreements with their customers (e.g., end-user license agreements, terms of services, privacy policies, etc.). Each of your contracts need to be tailored for your specific needs and goals. Strong business attorneys like those at Doida Law Group will help you develop concrete contracts that will protect you and the business you have worked so hard to build. Otherwise, an ownership dispute or a fired employee getting vultured by a competitor could be a death blow for your new business.
5) Raising capital
Are you completely funding your new enterprise yourself? Perhaps not. There is a good chance you will need to rely on raising capital through investors which can include various pitfalls that can prevent your company from getting the funding it needs. A strong business attorney like Stan Doida can help you navigate this complicated and multifaceted aspect of the law to make sure your company gets started on the right foot from a place of financial confidence.
6) Incentivizing your team
Your employees are the backbone of your company. Do you have programs in place that will allow you to recruit and retain the top talent in your industry, and incentivize them to work hard to build your dream? Startups often struggle to enlist the best and the brightest because their lack of name recognition. Building an effective team is a competitive process, and if you don’t offer benefits like stock option plans, profits interests, phantom stock plans, or bonuses, your potential employees might just be the leftovers and rejects from the companies that do offer such plans. Additionally, stock options and bonuses will give your employees a vested reason to help ensure the startup succeeds. They will simply be more invested in their work. However, there are numerous legal hurdles and regulations to putting these incentivizing plans into action. Your business attorney will help you put together a benefits plan that fits your startup’s needs, is both economical and effective, and one that is always legally compliant.
The startup process can be highly intensive with a practically never ending barrage of barriers to overcome. Every entrepreneur needs to evaluate his or her financial capabilities before making a decision, but there is an excellent chance that hiring an experienced and knowledgeable business attorney to help you get your company started will be one of the best decisions you ever make. If you are interested in starting a company and you want legal counsel or simply to learn more about how we can help, please call Doida Law Group and let’s talk. And be sure to check out Part I of this blog by clicking here.