Showing all articles tagged: legal-issues

The Lawyers Want to See This on the Cover of a Business Plan!

Confidentiality Notice: This Business Plan is confidential and contains proprietary information and intellectual property of NEWCO. Neither this Business Plan nor any of the information contained herein may be reproduced or disclosed under any circumstances without the express written permission of NEWCO. This Business Plan does not constitute an offer to sell or solicitation of an offer to buy securities of NEWCO. Any such offers and sales will be made only to "Accredited Investors," as defined in Regulation D under the Securities Act of 1933, as amended, pursuant to separate agreements to be negotiated by the parties.

© 2011 by NEWCO. All rights reserved. Confidential.

[NEWCO is the example business venture.]

Common Legal Issue Mistakes by Entrepreneurs

  1. Failing to incorporate early enough.
  2. Issuing founder shares without vesting.
  3. Hiring a lawyer not experienced in dealing with entrepreneurs and venture capitalists.
  4. Failing to make a timely Section 83(b) election.
  5. Negotiating venture capital financing based solely on the valuation.
  6. Waiting to consider international intellectual property protection.
  7. Disclosing inventions without a nondisclosure agreement, or before the patent application is filed.
  8. Starting a business while employed by a potential competitor, or hiring employees without first checking their agreements with the current employer and their knowledge of trade secrets.
  9. Promising more in the business plan than can be delivered and failing to comply with state and federal securities laws.
  10. Thinking any legal problems can be solved later.

[Harvard Business School associate professor Connie Bagley]

Jim Jindrick

Some tips, tools, and rules of thumb for innovation commercialization! You can send Jim Jindrick a message here: Jim's books are available here:

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