💥Will 2024 be the year you start your entrepreneurial dream?
Undeniably, passion and drive are essential to get a business off the ground." But let's face it: the journey of a start-up also comes with its share of legal bumps (trust me: I know!).
If you've decided that 2024 is the year you will start your entrepreneurial dream, here are some practical tips for a smoother startup.
🚀 Choosing a Company Structure: One of the first steps in the entrepreneurial adventure is choosing the right corporate form. After all, this has a big impact on things like personal liability, investor attraction and expenses. Unsure whether to conduct your chosen activity as a sole proprietorship or perhaps as a limited liability company (BV) or a public limited company (NV)? Then ask yourself the following questions in advance: Is this my venture or am I going to involve people in this shortly? Does my activity involve risks or significant investments? Do I need to use external investors to get my activity off the ground? Will I be able to generate profits soon?
Once you understand these basics, choosing the right form of company will be much easier. Of course, a change according to your growth story is always possible.
📑 Protecting Intellectual Property: Start-ups are all about innovation, and your idea is probably worth its weight in gold. Make sure its implementation or the result is well protected. Whether it's software, a unique product design or a brand name, securing your intellectual property is crucial to prevent others from running off with it. In addition, intellectual property can also be an asset to your business, which can have a direct impact on its valuation. Extending this further: it can increase the value of the shares, making them more attractive to investors (and, consequently, to competitors).
Therefore, the message is to protect wherever possible.
🤝 Drafting Contracts and Agreements: Collaborations involve agreements, and when you say "agreements" to me, I say "put them in writing!".
Whether it's your terms of sale, supplier contract, service agreement, shareholder agreement or your first employee's employment contract: the rule is that clear and legally valid contracts form the backbone of your business (or at least one of its backbones, if there are several 😉).
🌱 Maintain flexibility in growth: As your startup grows, its needs change. Be ready to adapt your legal strategies, whether it's the chosen corporate form, planned investments, an expansion (hooray!) or entering new markets.
Inform yourself (or better yet, be informed) about the possibilities, possible risks, new regulations, so that you can respond to opportunities.
In addition to the above tips, there are of course many others. Anyway, ensure you have a strong support network as you embark on this adventure. Think about compliance within the sector in which you operate. Get the financial picture right, ...
Are you in need of legal support or have questions about starting your business? At LegalDirect, we're ready to help. Feel free to contact us so we can work together on an approach and structure that fits your specific needs.
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