Three Mistakes New Business Owners Make- by Business Attorney David M. Walker
1. Feeling obligated to give friends and family a stake in your company
Most people make this mistake, which is one of the top mistakes that often lead you to big losses. Offering or granting ownership to other people that are their friends or family.
You should invest in people if they contribute to your business at present or in any way in the future. They may be offering you a few things to help you grow up your business.
But if they are not contributing to your success and your journey in any other way possible, you must not plan on investing in them. You are not obligated to give your friends and family a stake in your company.
You must be allowed to get the best of yourself from your business for yourself. But it would help if you did not feel like you should give away yourself and your business to your friends and family.
Your family will naturally be getting all that you leave for them when you die, but that doesn’t mean you should be given complete authority over your business. Because they are related to you somehow, you are not entitled to give them everything you have.
2- Signing documents with your personal name instead of your business name
Many people think that signing with their business name or with their personal name is the same thing. Many people will have LLC in place, but they will still sign documents with their individual names. Thinking they can sign for their business with their personal name puts them in a difficult situation.
The same thing goes with bank loans and party loans. You should be aware of the consequences of signing with your name or a personal guarantee. When you sign personally, you can not protect your business by saying that it is only a business problem. It falls onto you, and you have to deal with your business issues personally as an individual.
3- Not having legal contracts
Some people will often claim that they agree with the contract with their partners saved in text messages and voice notes. They think this is a form of contract, but that isn’t how it goes. Anything said in text messages, voice notes, or even emails is not validated by law, and it doesn’t also apply any legal actions on it. You can use this stuff in evidence, but doing this will rise up your fees and legal expenditures.
You cannot payment deals or all other things of this sort in text messages. It is very hard to translate text messages in any agreement. Hence you have to put all the details of your agreements in spate email and a spate document and get each paper signed as well.
Use your email to send these copies to other people but don’t rely on your text messages to store your agreements for the long run.
About David M. Walker Esq:
Before opening this firm, Atlanta contract attorney David Walker worked at large law firms that represent Fortune 500 companies. He served as president of a venture capital firm, where he took a Korean company public in the US and raised over $22 million. He also served as corporate counsel to a high-tech public company
Because of his experiences, Atlanta business attorney David Walker knows the issues that a business owner faces. He has made it his job as an Atlanta business lawyer to deal with these issues, so that the business owner can concentrate on other things.
To learn more about David, visit http://davidmwalkeresq.com/trademarks-and-copyrights/