Insights

A lot of Entrepreneurs fail in their businesses because they fail to get it right from the start. A lot of businesses fail because they do not pay attention to the legal aspects of a business.

In my years of law practice, I’ve discovered that a lot of Entrepreneurs make the mistake of putting off all legal issues until they are threatened with a lawsuit. They tend to engage Professionals only after a problem has arisen. There is a saying that “Prevention Is Better Than Cure”. This is quite true. It costs you less to prevent a legal issue from arising than to solve it when the issue has arisen.

HOW CAN A LAWYER HELP YOU BUILD LEGALLY PROTECTED BUSINESSES AND AVOID LIABILITIES?

In order to build a legally sound business, you need to engage a Legal Advisor for your business. A Legal Advisor can help your business grow in various ways:

1. A better business setup

A lot of Startups are confused as to the appropriate Corporate Structure to use for their business. The decision on how to form your business will influence several aspects of the business which includes how profits and losses are shared, how the business pays taxes and who runs the business. You need to have a legal expert by your side when you are starting a business to ensure that you are taking the right step in your business. Based on your needs, a lawyer can help steer you in the right direction in selecting the legal structure for your business.

2. Better business decisions

Business owners usually do not have the time to study provisions of the law relating to their business so they make legal mistakes. Having business lawyers on retainer helps you make informed business decisions in accordance with the law.

3. Careful Drafting/Perusal of contracts

In the business world, contract holds a significant place. You need contracts for employees, you need contracts for customers as well as you need contracts for clients, investors, and shareholders. Each contact needs to be drafted differently. A contract drafted for employees will ensure a harmonious workplace, empowers employees and seeks’ the growth of the company. A contract drafted for clients needs to be written smartly in order to win the deal. And, a contract drafted for investors and shareholders should cleverly include the amazing performance of the company that lures them.  The professional has expertise in this field and hence can give your better feedback and audit.

In business transactions, Entrepreneurs often enter into negotiations and sometimes do not have clear-cut agreements. In some cases, we find out that there was no valid contract only when the matter goes to court. Do you know that contracts may hide very important matters that may be harmful to your business? Your Legal Advisor can ensure that these contracts are properly reviewed before you sign them. Some Entrepreneurs make the mistake of “copying and pasting” when it comes to agreements. This can be very dangerous to your business. Contracts play a major part in businesses. A good lawyer can help you draft contracts to steer you away from potential legal troubles.

4. Transactions With Other Businesses

Transactions and business deals are very important for any business. It is necessary to have your Legal Advisor in the room where the deals are taking place. Your Legal Advisor oversees the transaction and analyses the risks involved before you enter into that deal with another business so as to ensure you do not enter into trouble thereafter.

5. Dispute Resolution

Disputes are inevitable occurrences in many commercial transactions. Different commercial and legal expectations, cultural approaches, political ramifications and geographical situations are all sources for disagreement and dispute between contracting parties. Where disputes arise in your business, your Company Lawyer can help resolve those disputes. Legal advisors will always help you when you are sued by the public.

6. Intellectual Property Protection

Creations of the mind like inventions; literary and artistic works; designs; symbols, names and images used in commerce are known as intellectual property. The law recognises and protects products of the human intellect from unauthorized use by others. Your Legal Advisor can help you protect your intellectual property and enable you to make money from the creations of your mind.

Every business needs a Legal Advisor. Businesses should build a relationship with a good Lawyer early enough in the life cycle of the business. Your Legal Advisor will get to know the intricacies of your business and give legal advice when necessary.

Setting up and operating a new business can be thrilling, but a smart businessman must also protect the Business from legal and commercial risks and it’s essential to consider all legal aspects of it.