It is important to have adequate cash flow, working capital and a good team of advisors. However, the importance of ensuring that you are set up correctly and operating correctly from a legal perspective should not be ignored. I often see clients who did not use an attorney or not an experienced business attorney, to review or prepare their customer and/or vendor contracts nor their commercial lease. All of a sudden, their business world starts to crumble because of contractual obligations that they did not intend or understand. Whether it might be terms in a supplier agreement that were too harsh, a lease that ends up costing too much because of operational costs passed through to the business by the Landlord, a customer who sues for a problem and the contract has not protected the business, the contracts under which a business runs can make or break a business.
Another consideration is that if the business operates under a name or logo that becomes valuable, that name and/or logo should be protected by a federally registered trademark. Imagine the name/logo being a company’s greatest asset and then having to change it because it was not properly protected.
Legal concerns need to be viewed by all businesses as an essential element to a businesses success or failure.