What Every Startup Needs to Know and Why They Need to Know It

Every day there are tens of thousands of entrepreneurs around the world who conceive a wonderful business idea that, if approached right, could turn into a lucrative undertaking. You may be thinking to put your idea to work for you by starting up a company that will market your ‘brain child’ to the world. However, that is only a small portion of what you need to do to get a new venture off the ground because there is more to starting a company than having a product and funding to begin producing it.

Getting the Right Advice

Many entrepreneurs get invaluable advice from mentors who have, themselves, started one or more lucrative companies and are more than willing to share what they know and what they’ve learned along the way. That is a wonderful advantage, finding a mentor who has been there and done that. Unfortunately, not every business is the same and not all industries lend themselves well to entering a market that is already saturated with the products and services you have to offer. Also, sometimes you need counsel from a mentor who has a minimum of a master of science in law because one small issue could create major problems down the line.

Do You Always Need to Hire a Lawyer?

There are times when the services of a corporate lawyer would come in handy, especially if your intellectual property is such that it can be easily stolen. If you can’t afford to pay a business attorney, perhaps a startup consultancy could offer the legal information you need to protect yourself from copyright infringement or theft of intellectual property that is the backbone of your startup. All it takes is having an online MSL degree and the intricacies of business law can work for you rather than against you. In other words, if you are going to choose the less expensive route of consulting a startup advisor, choose one who is well versed in business law.

When ‘Why’ Is More Important than ‘What’

Let’s look for a moment at how a title company assists a buyer in a real estate transaction. The title company does the research to ensure that property is free from any legal encumbrances that might challenge right to ownership down the road, after you’ve closed on the property. In much the same way, a startup advisor would have the knowledge and experience to research your business model and intellectual property to validate that you own the rights to your trademark, your registered property. It would be awful to invest tens of thousands into a startup only to be challenged once you began marketing your products. And, believe it or not, this happens all the time.

That’s why you need to know about business law when starting a company. You need to ensure that you own the rights of whatever it is you are going to market, including your name! Also, you need to know what the laws are in your state and local area. What kinds of permits do you need, if any, and what taxes or licenses do you need to pay? A mentor who offers inspiration is wonderful but even more important to the financial future of your startup is someone with a bit of legal acumen. That’s what you need to know and why you need to know it!