When Launching a new venture, there are numerous issues to consider. The reality is that more than 50% of new companies fail within a five-year time frame. We believe there are 6 key steps you can put into practice to improve your odds of being a successful, long-term company.
We help our clients calculate the level of risk for their Start-Up company and then help them create bring their dream to reality. Obtaining legal counsel with experience in aiding Start-Up businesses is an important first step.
We help our client clearly define their goals for their company. Decisions should be made as to whether the goal is to grow the company and position for future acquisition, initial public offering or a sustainable small to mid-sized business. It is important to consider what is to be the founders' role in the company structure going forward. The vision of the companies' founders is important for how the company is initially structured.
When there is more than one founder, an operating agreement is a necessary step. Companies run better when each person involved knows what their obligations are to the business, their role in the company, their job specific duty areas, their compensation and if someone is to leave the company how the departure is to be handled. A detailed operating agreement is a good investment.
To be considered by investors, it is important to have a clearly defined exit strategy or revenue projection if the goal is to create a sustainable small to mid-sized business. This is the type of information potential investors seek when deciding to invest in your company. There are numerous vehicles for funding. We aid our clients in drafting and review of funding agreements whether the investor is a government agency, family and friends, Angel Investors, Venture Capital Groups or the founders themselves. It is necessary to develop a realistic estimate of the amount of funding needed by the Start-Up at each stage of its development.
We guide our clients through the process of creating intellectual property that can be protected. Often after protecting your intellectual property, licensing your technology to other companies is a productive revenue stream or you may need to license existing technology for your own products. We direct our clients through the maze of licensing agreements.
When it is time to add employees, one must comply with all the federal and state regulations regarding hiring and terminating employees. We aid our clients craft an employee handbook that is suitable for the needs of their industry and guide our clients on employment law issues. A good employee handbook is a helpful tool. We draft employment agreements and help clients select benefits packages that will work for the entire company. We create stock option plans to attract and keep key employees.