Launching a business is exciting. You're thrilled about your ideas and looking forward to finally bringing them to fruition. There's been a refreshing shift in entrepreneurial culture - and with the emergence of the “lean startup” model, more people than ever are scurrying down the road of business ownership.
But before you take the plunge, there are a few legal tips you should keep in mind to ensure you and your business encounter minimal issues.
A business plan is your roadmap to success
Entrepreneurs who are gung-ho about their new business ideas hardly want to spend weeks or even months drafting a business plan. This lack of enthusiasm is understandable, especially if you already know the ins and outs of your industry. You know what it takes, so creating a business plan may feel redundant.
Others may want to skip this step if they aren't planning on financing. Investors and lenders are going to require a business plan before handing over the money. So, if you aren't seeking funds from a third party, it doesn't matter, right? Wrong.
Creating a business plan is the right thing to do. It's easy to get wrapped up in the big picture rather than the execution. Focusing on the small details may not be as exciting, but it's necessary.
A handshake agreement isn't good enough
You've seen the movies: two people come to an agreement and both of them “shake” on it and all is well. But when this happens in real life, there's almost always miscommunication between parties.
When you write an agreement down plainly and clearly, both parties can see its terms. There isn't much room for confusion this way, and both parties have a reference point going forward. Consistently writing up agreements is an effective way to avoid contractual disputes.
Prepare for the future
When you run a business, you need not only think about present concerns but also plan for potential upcoming issues. Many business owners make the mistake of only tackling the issues of today while being completely oblivious of situations that could arise down the line.
In terms of legal matters, entrepreneurs shouldn't wait until a problem arises to get an attorney involved. They should have one on-hand from the beginning. It's a common misconception that hiring an attorney is a waste of money if you aren't facing a serious legal issue. For example, let's say you're in the middle of a contract dispute because it was poorly written. If you had an attorney to help you draft the contract in the first place, you wouldn't be in this dilemma. Hiring legal counsel can save your business significant money in the long run.
Contact Inhulsen Law
Starting a business is exciting and absolutely terrifying at the same time. Regardless of how successful your business becomes, the fear that something could go wrong won't ever completely go away. But if you keep these legal tips in mind, you'll be able to spend more time chasing your dreams and less time worrying.
Don't wait until serious issues arise to seek legal counsel for your business. Inhulsen Law is well-versed in all business-related matters in Grand Rapids, Michigan. Contact our firm today online or by phone at 616-747-0000.
About Inhulsen Law
Inhulsen Law is a boutique law firm focused on Michigan businesses, owners, and their related issues. Intentionally small, we work in partnership with our clients to promote their success by providing practical and cost-effective services. To learn more, visit our website, follow us on Twitter, like us on Facebook, or connect on LinkedIn.