Being the founder of any startup can be a daunting challenge, but one that comes with great rewards. Founding a business does come with a lot of different pitfalls, some of which may blindside you.
Investing in good quality legal advice from day one is a good way to keep your business safe. If you are unsure, here are five reasons why you should see legal advice as necessary rather than optional.
Ensuring regulatory compliance
Navigating the legal sphere is a challenge for any new business, especially those in the technology field such as AI. At present, there are no specific laws regarding the use of AI, but there are plans for some to be introduced once the full extent of AI has been assessed.
That being said, there are laws surrounding the use of personal data, for example. Seeking legal advice will ensure that all of your legal requirements are met as well as avoiding fines and legal penalties.
Protecting intellectual property
A lot of the AI work that you as founders create will be classed as intellectual property, however it is a complex field. There are lots of ongoing discussions about the idea of inventorship and AI and being able to prove the innovation belongs to you.
Legal experts will be able to help you navigate this minefield and ensure your intellectual property is adequately protected. They will also be able to take action should anyone infringe on this protection which will keep your designs solely yours.
Securing funding and investments
Startups need funding to grow and survive. There are procedures that you will need to follow to apply for investments. Attracting investors can be challenging. A lot will need to see certain things from you and your business plan.
Running any proposals through your legal team will ensure you have everything the potential investor will need as well as ensuring that the resulting contract is above board.
Drafting and negotiating contracts
Contracts are an integral part of business. Whether it is for hiring staff, agreeing on manufacturing prices or even refuse collection, you will see a great number of contracts pass over your desk as a founder of a startup.
Business contracts are designed to protect both parties in the event of disagreement as well as layout expected terms and conditions. Getting a lawyer to look over any contracts will give you peace of mind that you are protected and that the contract is fair for your business.
Mitigating legal risks
As with any startup, there are legal risks. Founder disputes can be costly and risk the success of your business. Although you should have robust founder agreements, some issues cannot be foreseen.
Being able to mitigate these issues with your legal advisors will show how resilient your business is as well as highlight the founders’ commitments to the startup.
Also, Read; 15 Inspirational Quotes about Startups to scale up your entrepreneurship
