Start Right. 16-Step Legal Guide for SMEs
Don't Risk Your Business's Future: Navigate Legal Pitfalls
Video time: 7 minutes
Survey time: 1 minute
Reading time: 8 minutes
Worksheet time: 4 - 12 weeks 😱 (NOT continuous! You can eat and sleep! But there are a lot of in-depth topics to cover.)
Commentary directly from the video (regular type)
My commentary (italics)
Poll
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Intro
The video is aimed at entrepreneurs and those looking to legitimize their side hustles. The 16-point "Legal Checklist for Startups," provides guidance for building a solid legal foundation for your business. This video is designed for anyone uncertain about the legal aspects affecting their small business, offering a comprehensive overview to ensure legal compliance. I’ll echo the disclaimer in the video - this is NOT legal advice. Consult with a legal professional in your state.
1. Define your mission
Establish your mission statement to clarify the "why" behind starting your business. A mission statement helps you to move toward a consistent goal. It helps to ensure that every decision you make is consistent with that mission.
If you need help with drafting a mission read this old blog post I wrote on the topic. This walkthrough is for churches but is applicable for any organization.
Asana (project management software) also has a good Walkthrough and Template, for defining your mission.
The task of defining your mission is crucial and should ideally be carried out by you, the founder, or the core team members. This is not advised to be delegated outside the leadership circle, as it forms the cornerstone of your business identity.
“Your Mission Statement is your reason for existence. It tells your customers what you want to be held accountable to.”
― Mark Villareal, Mission, Vision & Values Resource Tool Kit
2. Define your end goal
Identify the specific, ultimate objective you aim to achieve with your business. This could include things such as:
An initial public offering (IPO)
A percentage of market share
A revenue target
And so on…
The distinction between this and Step 1 is that a mission statement is ongoing. It’s never “achieved” per se. An end goal, on the other hand, can and, hopefully, will be achieved.
Similar to defining your mission, defining your end goal is best left to you, the founder, or someone heavily involved in strategic planning for the company. This sets the roadmap for where your business is headed and should align with your vision.
3. Define your 'who'
Determine the people with whom you'll collaborate to run your business. This could include partners, investors, and employees. Completing a Business Model Canvas can help you clarify who your key partnerships will be. Here is a pretty comprehensive walk-through and explanation of a Business Model Canvas if you’re not familiar. Chat GPT is also a helpful resource for building a BMC.
The identification of key collaborators can be entrusted to your HR Manager or Talent Acquisition Specialist. Costs for this can vary depending on whether you have an in-house HR team or you employ external recruitment services.
4. Define your 'where'
Decide the location where you'll operate, register your business, and target your customers.
Again, a Business Model Canvas can help here (and elsewhere).
A Real Estate Advisor or Location Strategist can be employed to assist in choosing the business location. Depending on the complexity of your needs, consultation fees could range from $1,000 to $5,000.
5. Protect your brand
Develop a strategy to safeguard your intellectual property, such as trademarks, copyrights, and patents. Additionally, be sure to protect your online branding, including domain names and social media handles.
To safeguard your intellectual property, consider consulting an Intellectual Property Lawyer. Rates for this specialized legal service can range from $200/hr to $500/hr depending on jurisdiction and complexity.
“Use tools to monitor mentions of your brand online, including social media, blogs, and review sites. Promptly address negative feedback or incorrect information, maintaining professionalism in your responses.”