The 3 Undeniable Benefits of a Startup Lawyer
What are the benefits of startup lawyers? In this article, I shed light on a few.
Starting a business is an exciting endeavour, especially when you are the founder, co-founder or investor putting a lot on the line. It’s not just time and money, it’s also the reputation and opportunity cost of other ventures you could have pursued. Consequently, the risk you take is unlike any other risk and you really put it all on the line.
Minimising unnecessary risk and exposure is an obvious thing to do. But how would you do this? Well, it involves your marketing strategy, product positioning, partnerships, full competitive analysis and a lot more! It’s important to remember that the key element of risk minimisation is ultimately getting your legalities in order.
As a lawyer that deals with start-ups day in and day out, it’s crucial to realise that your startup is more vulnerable than you think it is. That’s just the reality of how the business world works. A perfect analogy here is a toddler. You don’t let go of your baby regardless of your circumstances. You protect them at all costs. As they grow up, you can continue to guide them and keep an eye on them and give them the best advice you can ever give them. And when the inevitable hits the fan, you are there for them and fight for them all the way.
That’s what a great startup lawyer does for the businesses they work with. You need a startup lawyer that guides you and protects you from the things coming your way that you might not even be aware of.
Here are the top 3 undeniable benefits of a startup lawyer.
1. Protect the shareholders and ensure harmony across the founders.
A competent startup lawyer will help you put in place the right Shareholders Agreement as well as the Employee Stock Ownership Plan (ESOP) to ensure your workforce is motivated, protected, working hard towards your goals. It also ensures the longevity of the business by ensuring your agreements are bulletproof against future risks and works in your best interest.
2. Protect your intellectual property
Losing your IP or being sued for alleged stolen IP can destroy any business. Creating a fool-proof IP protection structure from trademarks to copyrights and patents will not only protect you but also maximise the worth of your business.
3. Protect you through capital raising and exits.
As a startup founder, you’re always thinking about the next step whether that’s exiting or raising more capital. Every step you take can backfire if you’re not executing it the right way. A great startup lawyer or a commercial law will ensure you perfectly execute these plans.
Startup lawyers can help you with a lot more but finding a startup lawyer who is growth-oriented, understand the tech space or understands other growing niches and important sectors, is not easy.
Most commercial lawyers approach startups as small businesses rather than of a start-up. There is a huge difference – which is the growth mindset and vision that allows them to help you structure your business in ways that bring massive returns in the near future.
Here are the areas we help our startup clients with at Lazarus Legal.
- Business idea viability, commercial advice on proposed business structure, and identifying legal risks.
- Protecting ideas (NDA/confidentiality agreements) and Protecting IP rights (copyright, trademarks, and patents in Australia and abroad)
- Agreements for founders of the start-up and company set up advice including equity division
- Legal documents for software developers, designers, writers and other contributors
- Advice on attracting investors and administering the entire investment process.