Launching a new business can be one of the most fulfilling journeys a person can ever undertake.
There many factors to take into consideration — whether financing, marketing, customer acquisition or dealing with legal issues. Many new businesses place legal concerns on the back burner due to costs and time constraints. They assume that legal problems can be dealt with later, but it may be too late or even more costly to fix.
Founders needs to be aware that by pitching, sharing a business plan or asking for a money could put them offside securities laws. Businesses think that they need to spend less in order to succeed.
However, the principles behind The Lean Startup are not to be thrifty. The following checklist outlines ten common mistakes start ups make by trying to save money on legal costs.
Hopefully will help them take the necessary legal steps to be successful in the long run. Spending money wisely saves a business money and headaches later on. Choosing A Business Name Without Rights To an Online Presence It is important to choose a business name that a business can use online with a website and social media presence.
A business should ensure that they can have exclusive right to use it in association with the goods and services of their company to prevent others from hijacking or diverting attention from their brand.
A tool to check for a domain and social media name availability is at Name Checkbut there are many others. It is advisable to check the trademark potential and social media status of a business name before proceeding with registering, incorporating or attempting to trademark a business. Once you have checked for its availability online and the potential for trademark protection, then a business should proceed to register it.
There are many factors and limitations in choosing a business name.
Generally, the business name should be unique and not confuse a consumer with the goods, services, or trademarks of another business. The name should also not falsely describe the business.
In Alberta, one applies to the Corporate Registry to register cooperatives, corporations, extra-provincial registrations, non-profit companies, societies, trade names and partnerships.
In Ontario, this is all done with ServiceOntario. Other offices for other provinces can be found here. Similarly, instead of obtaining proper legal advice, a startup may use generic templates, like shareholder agreements, found on the internet.
This is not true. A business still has to file for a trademark. Although hiring a lawyer to do a proper name search that costs money early on, it is worth it in the long run.
The NUANS report provides a list of similar corporate names and trademarks to the proposed business name and reserves that name for 90 days. It is a mandatory requirement before a new corporate name can be approved in most provincial and territorial governments. A business may fail to trademark their brand or identity to save money so they can put funds into their invention, venture or idea instead.
However, trademark protection should always be a priority for any business owner. Failing to Obtain International Trademark Protection If a business conducts its operations in the US or Europe, then it is advisable to also obtain copyright, trademark and patent protection in those other countries at the outset and not just in Canada.
The last thing a business wants is to be ready to launch after pitching to funders and investors only to find out that someone else holds the trademark rights. A startup may fail to spend money to obtain the intellectual property rights patent, trademarks, copyright, including moral rights from independent contractors such as website developers, software engineers, programmers, graphic designers and their own employees working on and developing ideas and improvements to existing intellectual property rights.
Further, the work or contribution they could be doing for their new company could belong to the employer creating conflicting and competing interests.
Disclosing an Invention Outside of the Time Limitation to File a Patent A patent gives the owner of the patent exclusivity over the right to that invention for a certain period of time in a particular jurisdiction.
New business owners make the mistake of disclosing an invention without the necessary protections and then lose their right to filing a patent leaving it vulnerable for competitors to come in and steal their ideas.
In addition, business plans should note that all information contained in them are confidential and proprietary.There has never been a better time for an aspiring entrepreneur to start a consulting business.
But is consulting right for you? In today's post, we answer the top five questions most entrepreneurs have when starting a consulting business. Read the latest stories about Tech on Fortune.
Translating your vision for a new concept into a reality is a multi-step process that requires planning and organization. 7 Steps to Successfully Launching a New Concept. How to prepare for your first year and beyond.
create a robust business plan that outlines your capital needs and projects your costs and earnings over the next several.
JVs and alliances can deliver more shareholder value than M&As can, but getting them off the ground can trip you up in unpredictable ways.
TIME may receive compensation for some links to products and services on this website. Offers may be subject to change without notice. The Hollywood Reporter is your source for breaking news about Hollywood and entertainment, including movies, TV, reviews and industry blogs.