Starting a business entity takes many forms for different people. There are different ways that people become interested in starting, or buying, a new business. Maybe you took a buy-out, retired or came into some money. But you have time on your hands, you have skills, and you want to have something to do.
Or, you might be someone who feels unsettled at work, not sure of your future, and want to give yourself some options. Side hustles can turn into full-time gigs, if your heart is really in it, and you gain traction. Others may buy a franchise, like a Subway or a fast food chain, which can be expensive, but guarantees customers on the day you open your doors. And there is the always-popular option of investing in real estate.
There is so much entrepreneurship, all throughout our culture. Most universities teach it in their business schools, or as cross-disciplinary programs, say, connecting engineering with business. Sometimes these university start-ups can scale into important tech businesses. Other times, if they look objectively at their market opportunity, they might discover that they “only” have a multi-million dollar business opportunity. The sad thing about today’s tech investment environment is that it is solely focused on outsized returns, promising billion dollar companies, without acknowledging how very few of those there are in the whole world.
I have been a founder and/or an owner/investor of several start-ups over the last 20 years. Those industries include software for the dairy industry, a health supplements and cancer treatment business built around fruit and berry extracts, educational software and several others.
I used to be part of that high-tech investing world, but in the last 10 years or so, it seems like the process has flipped upside down to me. Reality doesn’t seem to matter any more. Profits? Customers? Burn Rate? Nope. The only thing that seems to matter is just strong personalities with a big vision and a VC-approved pitch deck.
As a lawyer, I see my role as trying to limit risk, and today’s investment style is not kind to early money; in fact it exploits it. I prefer to work to help people build REAL BUSINESSES, as opposed to living a “startup lifestyle” for the short time it may be available to you as a founder.
“… Matt is that rare lawyer who also has a keen sense of business issues, particularly the challenges faced by first time entrepreneurs. I have seen him successfully coach many entrepreneurs (young and old) and prepare them for the long and challenging journey ahead.”
Nasir Ali, Co-Founder & CEO, Upstate Venture Connect
Many new businesses are started by partners. Maybe one partner has important business connections, while others may be good at sales, providing the service, project management, keeping the books, or advertising on social media. So many different pieces go into building a successful business.
Regardless of how you and your partners split up the responsibilities, business partners need a written agreement to establish “the ground rules” of how the business will be run: who will contribute how much cash, equipment, or services to the new business, who will be responsible for keeping the books, identifying customers and making sales, managing the staff or setting up the company’s web site. These are among the many things that go into building a successful business structure.
These business formation agreements are called “Shareholder Agreements” if you have a corporation, or an “Operating Agreement” if you have a limited liability company. Planning ahead with small business lawyers helps avoid problems between you and your partners. As a Syracuse startup business lawyer, we can assist you in drafting these essential agreements.
These agreements are like a “Business PreNup”, and are essential for when a transition inevitably occurs among company ownership. Planning in advance, and having those conversations at the outset of the business relationship avoids problems – and substantial legal expense – down the road.
Once you’ve started a new business, one of the most important things you can do is protect your company name, website, brand, and business reputation. You may have a special “tag phrase” for how you describe your services, or have a special name for one of your products that you want to prevent people from copying.
The way to protect your brand names is to have a business attorney help you file for trademark protection. Federal trademarks are available if you do business in interstate commerce. For small business owners who sell products on a website, there is a good chance that you will qualify.
On the other hand, there are certain businesses that are more local in nature. But local businesses have just as big an investment in their business reputation in the community that is valuable and worth protecting. State Trademark Filings can be a cost-effective alternative to federal registration if you are a local business, like a restaurant, auto repair shop, local retailer, fitness club, or real estate broker, who doesn’t usually make sales from one state to another.
As a Syracuse business lawyer who specializes in helping protect and grow new businesses, we can provide you with a clear understanding of the costs involved in registering your trademarks. I have over 30 years of trademark experience, going back to when I used to register new band names for the record label I worked for.
I always provide a free first consultation, so feel free to book an appointment, and share your number and some information about your situation, so we can make the best use of the time.
Your most important asset is your people. But hiring employees can introduce complexity and risk to your business. It’s essential that a company has a solid on-boarding process to avoid any misunderstandings about the job and its requirements right at the outset.
As a Syracuse Business Lawyer who counsels hundreds of start-ups, I understand the value of having policies and programs in place to give employees the incentive to make a commitment to your business. Stock options, profit sharing, and employment agreements help you draw and retain the best talent.
Now for the risk part: You’ll also want to ensure that your employees don’t steal your customers or your business ideas. You do this by asking your employees to sign reasonable non-disclosure and non-compete agreements.
In light of recent legislation and court rulings, it’s important to understand that these agreements must be reasonable, or else they won’t be enforceable at all.
Choose an experienced attorney who can help you thread the needle between protecting your legitimate business interests, and driving away potential employees before they ever take the job.
And if you are the Executive who is being recruited to join a company offering an employment agreement and stock options, isn’t it worth paying 1-2% of your first year’s salary to know that you will actually be getting what the recruiter promised?
Using an experienced business attorney as a go-between shows your employer that you are taking the offer seriously. Hiring an experienced attorney also enables you to ask hard questions of the employer’s offer without alienating your new boss. The lawyer is kind of like your “ventriloquist’s dummy” who can say the things that you would LIKE to ask, but without the risk to your future employment relationship.
When opening a business, many people need to lease a storefront or an office where they will meet customers and base their employees.
As a Syracuse New Business Lawyer with over 30 years of experience negotiating commercial leases, including office space, build-to-suit space, shopping center leases, and restaurant leases, I can provide valuable insights and guidance to help you secure the right space for your business.
A new business owner’s lease is often their biggest single expense – and their biggest financial risk. Even if you rent a modest storefront for $2,000/month on a five year lease term, that represents a potential liability of at least $120,000, and probably close to double that amount, if you should have the bad fortune to default on your lease.
My experience working with shopping center developers and negotiating leases in major cities across America ensures that you’ll receive expert advice tailored to your specific needs.
For example, in my experience, I know that most of the worst provisions for the tenant in a lease are put toward the end of the document. The tenant (or their lawyer) may go on “auto pilot” and think to themselves, “this doesn’t seem so bad”. But the “gotcha’s” tend to come late in the lease, when your eyes are glazing over from reading all about insurance, taxes and build out requirements.
This is the biggest risk your business may face. The broker is not your friend; they are the Landlord’s agent. They don’t get paid unless you sign the lease. Spend a few dollars, and have an attorney look it over for you before you sign. You will be happier in the long run. Many attorneys – like my firm – even offer flat fee pricing to negotiate your commercial lease for you. Book your appointment now for a free consultation.
At MattVanRynLaw.com, we offer specialized legal services tailored to meet the unique needs of businesses in Syracuse, NY. With a focus on providing strategic counsel and effective representation, our team specializes in the following areas:
M&A Attorney: For businesses involved in mergers and acquisitions, our M&A attorneys offer expert guidance to navigate the complexities of these transactions. From due diligence to contract negotiation, we ensure that your interests are protected throughout the process.
Private Placement: Our private placement attorneys assist clients in securing investment opportunities and drafting partnership agreements. We understand the importance of strategic partnerships in business growth and work diligently to help you achieve your financial objectives.
If you’re in need of experienced legal representation for your business in Syracuse, NY, contact MattVanRynLaw.com today. Our team is dedicated to providing you with the highest level of legal service and support for all your business law needs.
Matt Van Ryn Law offers a unique perspective on business issues. He has worked in-house for Fortune 500 companies, and in private practice representing clients in a wide range of industries. He has helped hundreds of people start new businesses. He has helped dozens more buy or sell companies, ranging in size up from small local businesses to manufacturers in transactions valued at around $25-30 million. He has the experience of having worked on highly sophisticated transactions for world class clients.
Mr. Van Ryn has extensive experience litigating in State and Federal Courts, although he now limits his practice to consultation and commercial transactions, and only occasionally continues to litigate court cases.
Helping People Buy, Sell & Start New Businesses. Private Placements, Trademarks & Copyrights, IP Licensing, Outside Counsel Services, Employment Agreements & Stock Options.
