Posted by Michelle Grenier on Mon, Nov 02, 2009 @ 02:49 PM
Before starting a business, consider this thought-provoking analogy.
Building a business is like building a home. You would not use drywall to support a home, because it would not survive the elements (rain, storm, etc.) and would result in a loss of substantial investment. Similarly, with your startup, contracts are support beams for businesses. If you don't utilize solid comprehensive business contracts, your business investment will be at substantial risk.
In addition, proper entity establishment and maintenance is the "foundation" of a business, just as cement is typically the foundation of a home. You would not invest in a home that lacks a proper foundation. Consider the risks involved in investing in a business that lacks a proper entity foundation and/or fails to properly maintain such entity.
Furthermore, if you must "skimp" with regard to the home, skimping on the decor is less risky than skimping on the foundation or the supporting structure. In a business, if you must skimp, then skimp on the something other than the establishment or maintenance of the entity or the supporting contracts.
Moreover, it is important for Homeowners to protect their property. So too is it important for businesses to effectively protect the intellectual and proprietary property of the business, for example, Trademark Registration, Copyright Registration, Copyright Notices, Patent Registration, proper methods and efforts to maintain Trade Secret protection, etc.
Finally, to successfully build a home, a general contractor typically works with a team of experts, e.g., the architect, engineer, cement contractor, window specialist, painters, zoning attorney, etc. New businesses should also bring together a team of experts, e.g., legal, tax, etc.
Knowledge + Informed Decisions + Proper Implementation = Business Success