Five Legal Aspects Of Entrepreneurialism… by Alex McPherson
When it comes to start-ups, it’s easy to concentrate on winning clients and getting investment, and to overlook the legal aspects of running your own company.
A lot of entrepreneurs only think of consulting a lawyer further down the line when there is a problem — and, if it’s not too late by then, it’s often costly. It’s important to consult a lawyer as soon as you embark on your entrepreneurial journey.
Entrepreneurs can have a tendency to focus on the idea that drives the company, but there are many other legal aspects that can impact upon the success of an organisation. When talking about start-ups, budgets are often tight, but what you don’t want to do is cut corners and then realise that you’ve made a mistake or missed something out that will create huge problems further down the line and take time and money to fix.
Here are five key legal aspects that all aspiring entrepreneurs should consider:
1) Ownership. Who owns what? It’s imperative that the business structure is in place from day one. That can involve shareholders, directors and employees. How much control do you want to give to everyone?
2) Logos and business name. When it comes to your logo and business name, you need to make sure that it belongs to you — including any web addresses.
3) Intellectual property. These days, people are acutely aware of IP trademarks. It is important to make sure no one can legally step away from the business with your ideas.
4) Data protection. Complying with data protection regulation is important and companies need to ensure they adopt best-practice industry standards and can carry out on-site audits.
5) Non-Disclosure Agreements. It might feel disheartening and a bit like you don’t trust your staff and colleagues, but there are often situations that arise that necessitate staff signing NDAs.
Alex McPherson is a Co-Founder of Ignition Law, a law firm that specifically focuses on entrepreneurs, start-ups and scale-ups. Offering fast and measured advice from hub offices throughout London, Ignition Law takes fast growing businesses through their entrepreneurial journeys.