After establishing a new business, you will next want to know how to stabilize it and make it grow. In these early stages, it is vital to make informed decisions to move your company forward and to avoid common pitfalls.
As with when establishing a business, when expanding and growing it is vital to do so ethically and with legal compliance. Doing so will help your business run as smoothly and effectively as possible.
Below are five legal tips to help your business grow and avoid legal issues:
- Stay organized and well-informed - Create and maintain proper documentation for income, budget, expenditures, marketing plans, employee management and allocation of resources. Understand your rights and obligations related to federal, state and local regulations that relate to your business.
- Use written contracts and formal documentation - Develop detailed, legally-sound agreements for how you do business with partners, shareholders, vendors and employees. Even if they are a family member or other loved one, proper yet flexible agreements are vital.
- Protect your intellectual property - Protect your brand and ideas and ensure you do not infringe on the rights of other companies. Identify and safeguard your copyrights, trademarks, patents and trade secrets.
- Budget for potential legal matters - During startup and everyday management of your business, legal issues can and will arise. Make sure you allocate enough of your budget for legal services, particularly in the early stages of your business.
- Hire the right attorney - Make sure you have legal representation with the right in-depth knowledge, experience and legal ability to handle your current and future business matters. They should be well-versed in all business law matters, from starting and running a business to disputes and business litigation.