Continuing from Common Legal Mistakes Business Owners Make: Part 1, there are still many common legal mistakes that are being made. Though entrepreneurs may think that their biggest concerns should be marketing their products or spreading the word about their brands, they should be cautious as to what legal mistakes they could be making. Many startups just want to get their businesses up and started as quickly as possible and may forget about important legal issues. Don’t let make mistakes that could be easily avoided if you would consult a lawyer before beginning.
Businesses have many contracts. One of the most important contracts is with your vendors. If you need to purchase raw materials or outside services, you need to have a well-written contract. Lawyers can help draft your contract and provide you with the information that needs to be included. This also helps inform business owners on behaviors to avoid and what to keep their eye out for in the future. Do not enter into an agreement without a proper legally-binding contract.
Failure to create nondisclosure and non-compete agreements
Your company is going to have proprietary information that gives you a competitive advantage. Whether it is your customer list or an idea or formula for a new product or service, you want to make sure it is protected. Anyone who has access to this information must be legally bound to not reveal any projects your company may be working on. This will also protect your company if an employee leaves, they cannot take their clients with them.
Copyright, Patents, and Trademarks
Creating a business is a huge step. You built this idea from scratch and you put so much time and money into creating this company. You want to protect your name, products, and your intellectual property from being stolen. Know the specific laws on protecting the different types of intellectual property you could have. Avoid losing your business name or your blueprints for a new product.
You have worked hard to get to where you are at. Not having a legal professional helping you in your business endeavors could make your company’s future much harder. Take the initiative and hire a lawyer to help with business proceedings such as contracts, policies, and more.
**This article is for informational purposes only and is not intended to be legal advice. In relation to your individual situation, always seek advice specific to your circumstances from a lawyer.