Why All Startups Should Consider A Legal Advisor
Legal advice is important in the world of business–everyone should know this. However, most people assume that startups don’t actually need the help of a lawyer because they’re too small, and it takes a lot of capital to hire proper legal advice that can actually help you out. Sadly, legal advice is becoming more and more important in the world of business. If you want to start a new company, it’s vital that you seek legal advice even if you think you personally don’t need it.
In this article, we’re going to explain two of the most important legal areas that you need to keep in mind when starting a business in order to protect your intellectual property, but also your business in general.
Trademarks and Patents
If you’re an up-and-coming startup, the last thing you want is for a rival business or a larger company to steal your idea and make millions off it. That’s why it’s important to hire a business attorney so that you can protect your ideas and go through the right legal processes to trademark, copyright and register patents. Even if you’ve taken these steps, a legal advisor is required to help you take action should you realize that someone is trying to steal your ideas or take your products and modify them.
Sadly, this is the sort of protection that startups now need. Large companies are all too willing to bully smaller businesses and take their ideas. The correct method would be for them to purchase your business because then your copyrights and trademarks are also transferred. However, doing so is expensive, and if you have yet to register your parents, then they’re up for the grab and larger companies will likely take your ideas.
Hiring an employee sounds like a simple task. You just post an advertisement and then hire them, right? Absolutely not. Employment agreements need to be created–that’s why you’re always forced to sign a document before you can be hired. For most startups, this is a process that they tend to skip, but in the event that your employees decide to leak information to a rival company or steal your company’s work and create something from it on their own, you’re going to be in deep trouble.
You also need to draft employment policies such as how much overtime you can request, salary details and so on. Not only does this help your employees, but it also gives investors an idea of what you expect from your employees and they can use it to judge your company’s successes. In short, employment agreements and the practices used need to be drafted by a legal professional with your input–it’s not something you can just make up!
Startups should all rely on the help of legal advisors to get their business off the ground. It’s incredibly important that you get your business’s foundations built up before you decide to grow it, and without the right structure, legal advice and protection, your business will likely collapse.