Millions of startups are created annually in the world, but not many survive. Many factors influence success: product uniqueness, competition, the number of funds to start and keep a business afloat, and much more. Today we will talk about one of these factors – the legal side of the business process.
1. Registration of company name
The first and main step in starting a business is to register your company name. Your name should not be like the name of another company, because there may be a conflict due to copyright infringement, the results of which can be very disastrous. Communicate with patent and registration offices, search the Internet and make sure that the company in your field with the same name does not exist.
The second step is to register the name of the business (different from the name of the company) as a trademark. This additional step may be needed to identify goods or services produced by the enterprise, and to control their use by third parties. The name of the business and the trademark may not coincide, may be similar or, conversely, fundamentally different. The main thing here is the right to unique use, from the ownership of which you will make a profit (independently or under the control of transfer to strictly agree on parties).
2. Business insurance
All enterprises need liability insurance. This type of insurance will protect the company from troubles about employees or customers. Insurance can cover medical expenses, legal expenses, consultations with lawyers, Tencent Gaming Buddy, etc.
Property insurance is a prerequisite for enterprises with an extensive material base (equipment, transport, various constructions, etc.), which, when an insured event occurs, will allow, if not completely recover losses, then at least painlessly endure difficult times.
3. Intellectual property issues
If your business is centered on a unique idea, technology, product or service, you will have to take several steps to protect your intellectual property. It will also help to avoid violations if you suddenly use the intellectual property of another company.
Startups need to obtain patents for their inventions to prevent a third party from using, manufacturing or distributing such a product. Even though this advice is seemingly quite robust and universal, there are still cases when you should not get involved in patenting a product: the nerves, time and money spent will be disproportionate to the result. But what exactly are these cases and whether your product is the exception – only an experienced legal consultant can say. So do not neglect his advice on starting a business.
In addition to patents, it is worth considering the need for a non-disclosure agreement. It will be needed to prevent the spread of confidential data outside the company (department or unit).
Regardless of the organizational and legal needs of your business, it will always be useful to have a competent legal consultant in your team. It will help not only in the first steps of the existence of the business but will also make its promotion and development more comfortable and cloudless. Litigation, lawsuits, and claims are almost one of the components of the existence of any commercial enterprise, so having a full-time lawyer (or a freelance permanent consultant) who knows the history of the company and its specifics is a competent and balanced decision.