Ignoring the legal side of your business can be really tempting for a whole boatload of reasons:
it’s boring,
it’s confusing,
it’s overwhelming,
it’s expensive.
(just to name a few.)
But, taking care of your business’s legal needs can not only protect you from catastrophe, it can actually help you earn more money.
So we don’t recommend ignoring it forever (in fact, we recommend quite the opposite). So today, let’s talk about 3 ways that taking care of the legal aspects of your biz can actually earn your business more money. (MORE MONEY WOOHOO. Amiright?)
1. When you take care of the legal side of your business, you’re in a better position to take advantage of opportunities to work with others. Whether it’s entering into a joint venture or hiring an independent contractor, having your legal in order means that you can confidently partner with other business owners and professionals to expand your reach and income without giving up control and with minimal risk for unpredictable outcomes. So, whether you have a lawyer help you with the contracts or you’re using a trusted template, it’s important to know what you are agreeing to anytime you work with others.
2. A strong legal foundation can position your company to obtain financing. It’s often essential to have a proper legal entity, good corporate records and registered intellectual property if you want to obtain outside financing to fund your company’s growth. Many steps of this process lend themselves to DIY so if you don’t want to hire a lawyer to take care of the entire process for you, consider scheduling a consultation to get advice on what entity type is best for your situation. The real value of an attorney here is the experience and education that allows them to provide you with much-needed legal advice to complete the process on your own.
3. Knowing when to DIY and when to get help from an expert saves you time and money, plus positions you to earn more money! There are certain legal needs that entrepreneurs can successfully handle on their own, but many they should use an attorney for. As my friend Charlie Gilkey always says, “Just because you can, doesn’t mean you should.” The time and energy it may take you to figure out the trademark process, for instance, is likely not worth it when you could be doing the things you do best and that make you money. On the other hand, the copyright process is much simpler, so with the right tools, it may very well make sense for you to handle that on your own.
So there you have it, the legal doesn’t have to just suck away your money—on the contrary it can help you earn more money.
I didn’t know that if you give your company a strong legal foundation, it increases your ability to get funding. I can definitely see, however, that making sure that you are going through all of the legal steps to ensure your company good standing, it would definitely make you more qualified to receive the funding you need. I am starting up a business, and I will definitely take this precaution so that I can receive the resources I need to help my business grow. Thanks for the insight!
I hadn’t ever thought about it this way before. It makes a lot of sense, though, that it gives you more opportunities to work with people you otherwise wouldn’t. And the experience you can get from doing it yourself makes it easier and easier over time. I’m glad I read this, I didn’t realize it was such a good idea.
Makes a lot of sense!
Do you have a handout or info in your SBB product about what a new online blog/business entrepreneur should DIY and what to get done with a lawyer?
When it comes to the legal side of things it is essential for you to be on top of things. However, I definitely agree with your statement “just because you can doesn’t mean you should.” This is definitely the case with legal work. It is always good to hire a professional so that you can make sure that everything is handled properly.
I agree with you one hundred percent that taking care of legal things will help your business. When my dad was starting up his company, he wanted to make sure he got all the legal issues out of the way. It protected his company. He had a great business lawyer to help him out too.