We asked our attorneys for one tip they would give a client. Here is what some of them had to say:
Equity is the lifeblood of a startup company. Talk to a lawyer before promising equity to anyone. You should understand its different forms and the legal process for issuing equity. (Jeremy)
Continuously ask yourself, how does this help get me to the next ______. (Dan F.)
While spending money on (quality) legal services may not be the most exciting thing on an early stage company’s bucket list, it’s one of the most important investments a company will make. Working with a competent lawyer in the beginning can help set a client along the right path and save lots of money in the long run. (Anna)
Give your counsel the whole story; sometimes the things that you think aren’t that important change everything from a legal or tax perspective. (Amalie)
Time kills deals. (Jennifer)
If you deal with it now and document it while everyone is sane and performing to expectations, you won’t have the headaches and costs later when something goes awry. (FA)
If you think something might be risky, call your attorney first! It is well worth the cost of the phone call. (Holly H.)
Quickly call your business/operational attorney for new ideas you’re considering. Even if the ideas don’t have many legal implications, simply bouncing the ideas and getting an additional perspective will often be beneficial. And if there are legal issues that are relevant to your idea, it’s best to learn of them early so that you can implement your idea in a way that best balances the rewards vs. risks. I truly believe that an initial 15-minute call to your attorney is one of the best investments you can make in a new idea because it will save you headaches, time and/or money down the road. (Robb)
Guard your time much more carefully than you guard your money. (Justyn)
Think about where you want to go, not just where you are. (Holly C.)