Entrepreneurs and Legal Awareness
When you are ready to launch your startup, it’s a good idea to be well-versed with underlying legal issues that concern your industry and the country you will operate within. Having good awareness of these concerns will help you minimize risk and protect your business continuity at this critical time.
If you do not have legal awareness, details can fall through the cracks simply because of an oversight on your part. Unfortunately, ignorance of the law is not a defense when it comes to litigation, and you might be forced to cease operations because of something that could have been avoided.
The good news is, you don’t have to be a lawyer to be protected. There are many details you can see to yourself during startup, and for more complex matters, ElawKSA is always ready to help.
Many entrepreneurs forge ahead with their ideas assuming all the pieces will fall into place on their own. Unfortunately, this approach rarely works to anybody’s advantage.
Some of the most common legal traps new entrepreneurs fall into include:
1. Starting A New Business While Still Employed By A Company In The Same Industry Niche
You might be in high demand for your services – and you may have an amazing business model that has incredible potential. However, if you have a non-compete clause in your current contract or if you are still under contract to a company that operates in the same realm, your startup could be dead in the water before it even has a chance. Check your agreements carefully before you move forward. This goes for any potential employees as well. If they are coming to you from a competitor, do your due diligence. Check their contracts and be sure you’re not setting yourself up for a big loss.
2. Disclosing Innovations Before They Are Protected
There are many ways to protect an idea, an invention, or a design. There are patents, copyrights, and trademarks; and before you disclose anything to anybody, you should be sure you are 100 percent protected from fraud or plagiarism. If you are working with others on your invention or you hire people as you are developing your ideas, be sure you have every single person—no matter how much you trust them—to sign a non-disclosure agreement (NDA).
3. Thinking Your Legal Problems Can Be Solved Later
You might feel that you can wait to address the legalities of your startup. It might be because you’re busy raising money, writing your business plan, or rounding up new clients, but you truly can’t afford to launch without having all your ducks in a row. You might think that legal issues will sort themselves out when the time comes, but the reality is that it will take more time and expense to fix and correct than it will to get it right from the beginning.
4. Hiring a Lawyer Who Has No Experience With Startups
Not every lawyer is qualified to deal with startups and entrepreneurs. We all have our specialties, and even though we might have the same degree, we don’t all have the same experience. To ensure success, minimize costs, and reduce the potential for future problems, consult ElawKSA first. It’s not unlike raising a child. You want to be sure you are giving your new company a healthy environment in which to grow and thrive.
To learn more about how we can help with your legal requirements, reach out today.