Launching your own company can be very exciting. This is something that you may have been building up to for years.
While there is every chance that your company will make it, the reality is that a lot of startups fail. One reason that they fail is that they forget to take adequate legal steps that protect the new business.
Here are some important factors to keep in mind.
Using the right contracts
When friends, family members or colleagues launch a business together, they can get carried away with excitement. They may trust each other 100% and not think about contracts. In any scenario, it is important to separate professional relationships from personal relationships. This is done by using contracts.
You and your partner should sign partnership agreements. These outline your rights, roles and responsibilities. They can cover what you are expected to do each day and how much money you receive for doing it. They can also cover who is responsible for further investments.
Protecting your brand
Protecting your brand is essential. This starts with your company name. Perhaps you have come up with a name that is going to catch everyone’s attention. But, is it already in use? This is something that you need to check beforehand or you could end up facing a legal challenge.
As well as your unique name, you may have slogans, designs, advertisements and unique processes that set you apart from the competition. This is your intellectual property. You need to protect this by registering trademarks, using copyrights and recording your trade secrets. You can also use non-disclosure agreements that ensure nobody gives sensitive information away to competitors.
For further information on protecting your new business, you may find it beneficial to seek legal guidance.