The decision to launch a business requires careful planning, research, financial management and sound legal advice.
Anthony K. Tjan wrote in the Harvard Business Review on March 23 that “great founders start businesses not to create a company but to solve a problem, to serve a calling, and to understand that they have a purpose that can actually make a meaningful difference”. Indeed, starting a business often stems from a passion and commitment to making a mark in the world.
However, to ensure this starting process is smart, smooth and strategic, consulting with expert commercial lawyers can significantly help.
In the early stages of starting a business, even simple decisions such as choosing a name and logo can have legal repercussions if another business has registered the same intellectual property (IP). The smart thing to do is to use the correct legal channels to register trademarks, patents and copyrights.
Protecting intellectual assets cements the business brand, comprising its slogans, colours and other identifying or differentiating material. As a new business, establishing a unique and distinct brand is clever as it builds competitive advantage and champions unique selling points.
If the new business is introducing innovative products and services to the market, it is particularly important to legally safeguard these. Unfortunately, the Australian Bureau of Statistics found only 29.3 per cent of businesses protected their IP in 2013. Start a business shrewdly by securing IP rights early.
Choosing the most beneficial business structure should be a priority in the early stages. In Australia, the four main structures are sole trader, partnership, trust and company. It can be difficult to identify which is best suited, particularly as each comes with different tax implications.
However, the decision can be very smooth if made in conjunction with tax advisory lawyers. They clarify how various taxes such as corporate tax, capital gains tax and income tax impact the business. They can also offer legal advice for managing taxes through consultation with accountants. The selection of a structure is thus made easier.
Requesting customised and tailored legal advice specific to the business is the best strategy for success. Since legal advice covers a vast array of corporate needs, ranging from buying and selling assets to commercial disputes to attracting venture capital, seeking bespoke advice bolsters each strategy.
Developing the habit of consulting with lawyers for business matters early will help prolong the success of a business. Start strategically by scheduling an appointment with a law firm.
Business growth and profitability begins by starting strong. Good luck!