ARTICLES
Business Law Update (Monthly Newsletter)
September 2008 - Protecting Business Assets from Former Employees
Employers have a legitimate interest in protecting business assets through the use of non-compete agreement with employees. However, courts are cautious about enforcing overly broad agreements. Follow these practical guidlenes to create strong agreements not to compete.....
August 2008 - What's Your Company Worth?
Determining the value of a growing company is a critical skill for entrepreneurs that comes into play when granting options to employees, when raising capital from investors, and when selling assets or buying out a partner. Value your company too low, and you can give too much of it away. On the other hand, value your company too high, and you may turn investors away when you're raising future rounds of capital....
July 2008 - When Raising Investment Capital, Can You Pay Someone
to Do it for You?
Many of the techniques clever entrepreneurs rely on to fill a pipeline of prospective clients often times violate state and federal securities laws when used to find investors. Learn how to stay clear of securities law violations when getting assistance to help find investors....
June 2008 - What Happens When Your Customer Files for Bankruptcy
Most often when our clients come in contact with a bankruptcy situation, we
see stable companies that have been affected by their customers' financial
problems. Learn how to stay out of hot water as a creditor in bankruptcy...
May 2008 - Increase Sales by Staying on the Grid
Current economic conditions may have some entrepreneurs concerned, while others find opportunities not available to them previously. Increase your chances of capturing those opportunities by "staying on the grid" with prospects and clients...
April 2008 - No Protectable IP? Maybe No Funding
Why some early-stage investors require patentable technology as a condition to funding, that is, without patentable technology some investors will not even consider funding your company...
March 2008 - Mistakes to Avoid When Letting Staff Go
As companies adjust for what may be uncertain times that may lie ahead, lay-offs are obviously one measure that companies may take to cut costs. Unfortunately, letting staff go is one of the most unpleasant and, sometimes, unavoidable parts of being a business owner...
Ditch
the VCs and Angel Groups: Take Control of Your Company’s Funding
Strategy
So you put your
cash, ego and pride on the line and started your dream business. You
have the business strategy that will make you rich. All you need is
the cash to take your business to the next level. Your plan is to
look for funding from venture capital firms (VCs) or angel investor
groups. Not so fast...
Be
Smart About Terminating Employees
According to the
U.S. Department of Labor, employers initiated 3,597 mass layoff actions
from January through February 2003, as measured by new filings for
unemployment insurance benefits during the two months. Each action
involved at least 50 persons from a single establishment, and the
number of workers involved totaled 340,474. Unfortunately, terminating
employees is one of the most unpleasant and, sometimes, unavoidable
parts of being an entrepreneur...
Can
You Accept (or Pay) a Fee for Finding Investors in a Securities Offering?
Our clients regularly
ask us whether they can pay to another person, or receive from an
issuer, a “finder’s fee” for securing investments
in a securities offering. One of the biggest myths in the securities
industry is that the payment of finder’s fees falls within a
“gray area” of the law. In fact, there is no gray area
and, in almost every case, the payment of a finder’s fee to
a person who is not a broker or dealer registered with the NASD is
illegal...
The
Corporate Veil: Protecting Your Personal Assets
The creation of
a corporation by the filing of its certificate of incorporation and
the holding of an organizational meeting brings into existence a separate
and independent legal entity. The main attribute of the separate legal
existence of a corporation is the broad protection it offers from
personal liability. This is referred to in the legal community as
the corporate “veil” from liability...
Finding
Your Match: The Art of Meeting the Right Investors
In my practice,
I meet with many entrepreneurs. Listening to their stories is a poignant
reminder about just how difficult it can be to find the investment
money they need to grow their businesses. Many often ask me about
the best ways to raise money for their businesses. Believe it or not,
often times my answer begins with a story about my dating life. It
goes something like this...
Negotiation
Tips
Effective negotiation
skills are critical to the success of an entrepreneur. How many times
have you been in one or more of the following situations? You need
to answer an employee who has asked for a salary increase; your primary
supplier want to double his rates; or you are seeking financing and
the banker is offering very little money for a substantial part of
your company...
The
10 Most Deadly Mistakes Business Partners Make - And How to Avoid Them
One of the best
ways an entrepreneur can find the investment money he or she needs
to grow their business is by finding a strategic or joint venture
partner. In a good partnership, each partner will bring expertise
or assets that the other party is missing, but that are necessary
for the business to be successful; for instance: CASH...
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