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Why wait for a conflict to hire a legal expert?
To run a successful business also means to foresee impending crises and have a back up plan.
Here's why you'll need it.
When it comes to addressing legal requirements, even the otherwise thorough start-ups, hold back and try to make-do with the limited knowledge available with their core teams.
More often than not, the law also appears ambiguous to the young generation of professionals, especially those with a singular focus on technology.
When faced with a conflict, teams scout for solutions, but being prepared in advance for a legal crisis, takes more planning and understanding.
Here are some of the critical challenges that start-ups and small businesses encounter on the legal front, and reasons why seeking professional expertise is imperative, especially for lean teams.
#1. Non-Disclosure Agreements
Start-ups usually go through a frenzy of innovation in the first few years after inception, and safeguarding these ideas is of extreme importance.
Establishing an impenetrable non-disclosure at every level of contact is a must.
#2. Intellectual Property Registration
It is vital to consider an IP registration -- trademarks and copyrights -- as applicable, in order to make sure your business interests are protected.
Tying in a legal expert will help identify the right time and method to file an application for intellectual property and in acquiring it without difficulty.
#3. Employee-employer transactions
Bringing in the legal aspect of employment, not only in terms of the work-contract but also the non-disclosure, is vital to start-ups to ensure information security.
Insider breaches are very common amongst smaller company set-ups and engaging a legal expert would help moderate the effects of any such occurrences.
#4. Vendor and customer relationships
More often than not, the absence of an iron-clad contract for professional agreement with new customers and vendors might give way to unexpected inconveniences such as payment delays and inadequate delivery efficiency.
Even in the presence of a detailed contract, breaches are possible, professional dexterity is necessary to improve the company’s position and manage damages recovery.
#5. Legal documentation
Start-ups have a constant need to create legal documents besides the standard NDAs to engage e-commerce partners, service providers and software providers.
In addition to these they would need to create end-user agreements that are specific to the service or product the start-up is offering.
Creation of these documents flawlessly, needs a seasoned legal professional’s guidance.
While every individual needs to be aware of the legal environment and be equipped with primary tools, it takes a legal expert to help companies pre-empt crises and mitigate monetary and reputational losses.
In order to make a successful business, therefore, it is crucial that start-ups have a solid legal grounding besides creating interesting products and services.
Role of community driven legal engagements
The truth is, engaging a legal expert from an external agency or as an in-house hire is a tedious process.
For start-ups designed to be lean, this becomes impractical given the lack of skilled, experienced talent as well as high head-hunting and hiring costs.
In such cases, higher buying power and trustworthy networks of community work eco-systems could be a much needed relief.
Moreover, there is always better visibility, transparency and comparability amongst various players from the community, and the power of choice lies with the customer -- the start-up.
We recently witnessed a major splurge of start-up communities that brought together the best of talent and opportunities on a common platform.
It is now up to business leaders that they make the most of these prospects, and connect with budding and experienced talent, especially on the legal front.
It is only a matter of time before small companies seamlessly adapt to the changing eco-system, and convert these opportunities into tangible business benefits.
With the power of the community, start-ups would soon be enabled to overcome their legal encounters, effortlessly.
Photograph: Brian Turner/Creative Commons
The author is founder and general manager, iKeva, an organisation that provides workspace for businesses.
Lead image used for representational purposes only.