Entrepreneurs and small business owners represent some of the fastest-growing sectors of industries as well as the companies that have the most job creation. However, because new entrants are frequently first-timers, these two business entity types are usually at the most risk for legal mistakes.
The Risk Starts on Day One
The legal risks start literally with the creation of the venture. From the business type choice to the first contracts engaged in, each misstep can create a costly situation that has sunk more than one business before it has gained its legs. And nothing is more frustrating than to work extremely hard to get a small company off the ground only to see it bankrupted by a painful lawsuit that can’t be avoided. Remember, once in court, the costs are escalating exponentially. Even if the small business wins the case, the cost of the representation can be tremendous in litigation.
A Lot is Covered With a Business Attorney’s Help
Fortunately, all the above can be avoided with a bit of prevention and thinking smart at every step. By bringing in the skill and advice of a business attorney, a new company and entrepreneur can both learn from and avoid the mistakes of others in their industry, making the right steps with forms, business practices, contracting, and business formation that avoid costly errors.
General business legal advice comes in a variety forms, including:
- Business creation
- Hiring and employee policies
- Contract preparation
- Leasing and rental agreement guidance
- Copyright and patent protection
- Licensing expertise
- Regulation, permits, and license navigation
- Product warranty
- Business formation changes
- Growth and strategy
- New market entry
- Out-of-state and out-of-country risk management
- Partnership creation
- Franchising, and
- Closing or selling of a business
Obviously, the list is long and varied, and there’s a lot more that can be added to the above as well. While it’s possible to get some basic help from free resources, ongoing support is usually not available on a website page or similar.
Business law firms like Lulich & Attorneys and similar bring to the table an extensive amount of experience working with different business clients, which allows seasoned attorneys to apply lessons learned from one industry to the next as new clients bring new challenges. As a resource for a new small business, a seasoned business attorney is one of the best assistance to tap into, especially when the business owner doesn’t have extensive experience already in running a company. Additionally, the same can be said where an entrepreneur may know business in general, but is unfamiliar with a new market that has more restrictions, especially a heavily-regulated environment.
The Human Factor
Again, small business failure is extremely common, but one of the biggest contributing factors for so many closed businesses comes in the form of bad decisions by rookie business owners. It’s generally not because the product or service is bad or there are no customers. Instead, the failure happens because the small business didn’t plan wisely for risk. Insurance companies help, but they are not a default solution for every possible risk of being sued. Instead, utilizing a high-quality business attorney, a new business can spend a single-digit fraction on prevention versus what ends up being paid out in damage control after the fact.
Don’t be a statistic in labor failures. It’s never too late to bring in legal help and get on the right track for your company’s growth.