"By failing to prepare, you are preparing to fail.” ― Benjamin Franklin
The Preparation phase is where your plan starts to meet action. In this phase, you should be documenting as much as you can regarding how you want your business to run, who and what you will need to make it run that way, and where the best environment is for your business to start. This phase is also where the bulk of the basic legal work is found. Some of the basic legal questions which will need to be answered in this phase are:
- What structure should my business take?
- Should I incorporate my business in Louisiana or another state?
- What do my articles of Organization need to say?
- After incorporation with the Secretary of State, who else should I register with?
Many start-ups will try to google these questions, sift through the vast amounts of information, and ultimately do it themselves or pay for a third-party online legal service. While all of these are viable options, please consider it is much easier (aka cheaper) for most attorneys to help you from the start than to go back and re-do the work of another. We, at Lawrence Law Firm, understand money is tight when you first start. That is why Mr. Lawrence developed our start-up subscription model. This allows for your business to get started with the proper documentation and guidance and maintain a predictable and affordable bill for legal services.
Proper completion of the Preparation phase should include answers to questions such as:
- What structure should this business take?
- Do I need equity partners, hired managers, advisors, or paid consultants?
- What should be included in my Articles of Organization?
- Deciding on a Name and place of incorporation
- What minimum resources and logistics are required to complete the first transaction?
Beware of allowing the preparation phase to slip into a feeling of premature accomplishment. Symptoms would include:
- Immediately ordering unnecessary products with the logo and branding.
- Offering the possibility of equity to anyone who may be of help to your start-up.
- Finding you are talking more about your business than you are documenting or developing.
At Lawrence Law Firm we assist small businesses and their owners in navigating the cycle of small business, thinking ahead to the subsequent phases, and executing them. Our founder, Aaron Lawrence has assisted businesses nationwide as a consultant, attorney, and advisor. Whether you are in a pre-startup phase and looking to incorporate, are scaling into new markets, or have hit a new point in your business and would like guidance on how to proceed, schedule an appointment with us to see how we can assist.