By Eyal Lifshitz
The economy today is moving faster than ever. Given the ubiquity of cloud-based solutions in the market, relatively low barriers to entry and a surplus of capital available to aspiring entrepreneurs, full speed ahead is your only choice. Anything slower, and someone else will pass you.
Related: 10 Questions to Ask Before Hiring a Small-Business Attorney
Yet even with these market conditions, potential roadblocks remain, and every business owner needs to tackle them. From the beginning, your business strategy should satisfy the legal requirements of your industry. After all, no matter how great your business strategy, it can’t be executed if you’re operating outside legal bounds. The very well-being of your business depends on giving this building block the time, attention and investment it deserves — and at the early stages.
Here are five tips for crafting a legal strategy in your fledgling organization:
1. Budget more for legal spend than you think you need.
Don’t underestimate your legal expenses. Legal fees could end up being a large upfront investment when you start your business. In my experience, these fees always end up being more than anticipated due to the constant back and forth, legal complexity and other factors. For this reason I recommend giving yourself enough of a buffer in your budgeting for these services. Also, make sure you consult with your attorney to estimate the total legal fees at the onset.
On top of that, you also need to pay for license fees, license filing fees, bonds and more. It can be very helpful to speak with other entrepreneurs who deal with similar legal challenges, to determine a better estimate of those costs. At the end of the day, budget wisely so you don’t have to dip into funds that could have been put toward other business objectives.
2. Assume you need twice as much time as you anticipate.
When the idea for your business comes to you and you see a market need that is not being fulfilled, you want to get cracking right away. But getting your legal ducks in a row can take time, so plan ahead. When we started BlueVine, it took us a full year to obtain our lender license. During that time, we had to work on a modified basis to operate within our legal bounds. Make sure you know which licenses you need, to begin operating, and take into account the time needed to acquire those permits.
