If you’re growing your small business, you might find yourself in a position to hire employees and/or independent contractors to take over some of the responsibilities associated with carrying out certain duties. (We cover the differences between employees and contractors HERE.) This can be concerning if your business has intellectual property and processes that you would like to remain confidential. It’s important to reduce your risk before the hiring process begins. While it’s important to talk to an attorney before asking an employee or contractor to sign formal documentation, you need to be aware of the three main types of noncompetition agreements used to protect your assets from being divulged to your competition.

• Traditional Noncompetition Agreement: The traditional NCA states that an employee, during employment or after termination of employment, will not work for the employer’s competitor for a certain period. This prevents the employee from taking sensitive information acquired while working with the employer and using it against the company by using it while working for the competition. It is important to note that NCAs can only be signed by employees, not independent contractors. Since, by law, an independent contractor is one that does work for multiple employers at the same time, asking the contractor to sign a NCA can negate the independent contractor status and you could be on the hook to pay full employee benefits and taxation if audited.
• Non-Solicitation Agreement: An NSA prevents a former employee from soliciting, contracting or transacting business with the employer’s customers or employees for a certain period after leaving the company. This prevents an employee from taking your clientele and employees with them when they leave your company. Again, this can only be signed by an employee, not an independent contractor.
• Confidentiality Agreement (also known as a Nondisclosure Agreement): This contract prevents employees from using their employers trade secrets, proprietary information, confidential business information, customer lists, or any other sensitive information that could only be obtained by working for a particular employer. Since trade secrets are vital to a business’s continuation, there is typically not a time restriction on these contracts. These contracts can be signed by employees or independent contractors alike.

What is the best option for your company? It’s important to speak with an attorney that specializes in small business to understand the differences between the contracts and the risk reduction that can be associated with each. The experienced professionals at LexLaunch.Com are happy to listen to your individual needs and create solutions that work for you and your small business. Call the attorneys at LexLaunch.com at (816) 434-6610 or click here for more information to learn more about how to decrease risk and protect your small business.

In both dating and business, the early stages are filled with excitement, optimism and infatuation. Partners convince themselves that nothing can go wrong, but if it does, they will weather it together and work it out. However, ideas change and things can get messy if life throws a curve ball—which almost always happens.

A critical error made by many new businesses is failing to have documents and agreements in place from the beginning. New business partners put off this critical step in the early stages, when everyone is in on a new-business high and all is in sync. Unfortunately, this can eventually cause the demise of the business.

Companies that empower attorneys to create documentation and solidify agreements are more likely to succeed than ones that try to power through without legal assistance. In addition to specifying everyone’s roles within the company, these documents specify a play for what will happen if there are changes within the company. Talking about these issues early on and developing a clear plan will save time, money, and hurt feelings later.

Meeting with a legal representative should happen as early as possibly in the formation of the company, preferably before the business gets started. Establishing responsibilities, company ownership percentages, share of sales and how value is divided among members is less emotional when completed before the company has any value.

Many small businesses forgo this process because founders don’t wish to spend their resources on legal fees, choosing instead to focus on sales, marketing and product development. However, this mistake can be costly long-term. Legal work is a task that is easy to outsource and important enough to justify the time and expense.

At LexLaunch, we provide services to help you create and execute specific agreements to decrease risk to your small business. Thinking about starting a small business, or need to put agreements in place with your current business? Give the attorneys at LexLaunch a call today!

Pop quiz! What do the names Paramount, Fox, MGM and Pixar have in common? If you immediately thought of Hollywood movie studios, you’d be correct. An energy company in Canada has also branded their different lines of business with these famous monikers, using Paramount Resources as their parent company, which has significant investments in the MGM Energy corporation. They also have holdings in Fox Drilling company. Recently they gained international attention when named their newest endeavor Pixar Petroleum corporation.

While this might seem like taking a theme to the extremes, it’s not uncommon for companies to choose L.L.C. names that go the unconventional route, as was the case for Cogswell Realty in New York. Inspired by the competitive environment between Spacely Sprokets and Cogswell Cogs in the hit 1960’s cartoon The Jetsons, the founders chose to name their company Cogswell, as he always seemed to be one step ahead of the competition. They kept the theme and have since developed “Judy, L.L.C,” “Astro, L.L.C” and “Elroy ,L.L.C.”

Often a customer’s first impression can be derived straight from a business name, and can serve as a powerful marketing tool. Jeanne Smiczek, a huge 1980’s movie buff, had dreamed of opening her own flower shop, and saved for 13 years to make her dream a reality. She channeled her inner Marty McFly and named her shop “Back to the Fuschia.” The name alone prompted interviews and lots of local media buzz. Because Teleflora and other online floral distribution sites can easily differentiate her store from many in the area, she has an edge when it comes to connecting with mass chain floral distributors. She has seen her sales grow, on average, 40 perfect year-over-year.

A name change can also sometimes have a significant payoff. Such is the case with Big Ass Fans. This company went by the seemingly dull name of HVLS Fan Co., derived from their promise to offer “High Volume, Low Speed Fans.” However, after a few years in business, the company made a bold decision to change their name after customers kept calling to ask if they were the ones who made those “big-ass fans.” The name paid off:  Since opening their doors in 1999, the company has now grown to more than 900 employees and exceeded $300 million in revenue in 2016.

Sometimes the names are just a happy accident. Boxwell Brothers Funeral Directors in Amarillo, TX had no plans for a marketing edge when they named their business. The family that owns the business is actually the Boxwells. The irony of their name has made them well-known on a national scale, they were even featured in an episode of “Ripley’s Believe it or Not.”

While deciding on the name of your small business might not require expert planning, there are many steps in setting up a small business that shouldn’t be left to chance. The team at LexLaunch.com is committed to providing a strong foundation for small businesses. Have you spoken to a legal representative to decrease risks and protect your business? If not, make it a goal to call the experts at LexLaunch.com today at (816) 434-6610 or click here for more information.

Keeping your personal life separated from your business is an important step to ensuring long-term success. LexLaunch.Com’s Tim Denker explains these steps to small business owner Kevin Oldham in Part 4 of our vlog series. Ready to create your own LLC, at a reduced rate from typical attorney’s hourly fees? Click HERE to learn more!

Setting up your business as an LLC is a great step in reducing risk for your company. However, it has its limitations. LexLaunch.Com’s Tim Denker explains these limits to small business owner Kevin Oldham in Part 3 of our vlog series.  Ready to create your own LLC, at a reduced rate from typical attorney’s hourly fees?  Click HERE to learn more!

At the start of a new business, it can feel like a race against the clock just to keep up with daily tasks: making calls, ordering supplies, fulfilling orders, attending events. When every day has its own set of obstacles to overcome, it can seem futile to think about setting yearly, quarterly, or even monthly goals. However, goal setting is a vital step in ensuring the overall health of your new business. To help you get started, LexLaunch.com explains why you should begin to set goals your first day on the job, and how to know if your goals will keep your business on the right track.

It’s important to set goals for a variety of reasons:

• A healthy business should always be working on growth, profitability and efficiency. Setting goals for these areas provides a clear indication of whether your business is headed in the right direction or whether you need to make adjustments.
• Whether you work with employees or contractors, setting goals helps everyone involved know exactly what they are working towards. Clearly defined goals provide greater rationale for decision-making and eliminate uncertainty for all members of the team.
• This is a no-brainer, but it’s hard to achieve goals that haven’t been defined. Striving for a goal can boost confidence, encourage more development, and instill a sense of morale for the entire company.

It’s also important to know how to establish goals that will achieve the outcomes you desire for your company:

• Separate goals from wishes. For example, “I want my company to make money this year” is just a wish and too vague to be effective. Stating “Our company will show a 10% profit from 3^rd quarter to 4^th quarter” is a measurable and specific goal.
• Be S.M.A.R.T. You’ve probably heard this one before, but it’s worth repeating. “SMART” is an acronym to use when goal setting, and it stands for Specific, Measurable, Attainable, Realistic, and Time-sensitive. Making sure that your goals have these attributes will make them more helpful.
• Establish consistency in setting, reviewing, and revising goals. Working toward goals is an ongoing process—once one is achieved you begin again with another. If you have a large yearly goal, support it with smaller quarterly, monthly or even weekly goals to stay on track and to celebrate small wins.

Setting and working toward goals can make the difference between merely surviving and really thriving during the first years of your new business. The team at LexLaunch.com is committed to providing a strong foundation for small businesses. Have you spoken to a legal representative to decrease risks and protect your business? If not, make it a goal to call the experts at LexLaunch.com today at (816) 434-6610 or click here for more information.

Every business should consider consulting with at least two types of professionals in the early stages: accountants and lawyers. Most small business owners visit an accountant to set up the financial foundation of their new venture, but some struggle with the need to visit an attorney for business setup structure and solid risk reduction strategies. A good legal foundation will provide valuable security throughout the life of your business. Here are a few reasons to visit a lawyer in the early stages:

• Determine business structure. What type of business structure is best for your small business? While an accountant can give you information regarding the financial and taxable state of your business, only an attorney has the credentials necessary to provide you with legal counsel. Speaking with a lawyer who has experience in starting new businesses will give you the confidence you need to make sure you are forming the correct type of structure for your new venture.
• Complete all incorporation steps. There’s more to business structure than just filing with the state. Certain steps must be taken to ensure your business retains full protection under incorporation. You must obtain a Tax ID number, and establish an Operating Agreement. You should also keep company minutes, as well as other items specified by the protections you are seeking. An attorney with experience in business creation will be able to walk you through these steps.
• Be proactive. Once you are in legal trouble, it’s often too late. If you are waiting until the sheriff visits with a summons, you’re taking a big gamble. Hiring a good attorney will help provide risk reduction in every aspect of your business, from formal business incorporation to lawsuits to liability. Once a problem has already occurred, it’s just a question of how much you will have to pay to get the problem resolved, and depending on the problem your business might not withstand the outcome.

Meeting with an accountant and an attorney can be your best professional consultations when forming a new business.  If you are looking for reliable, affordable legal setup from attorneys with extensive small-business experience, call the attorneys at LexLaunch.com at (816) 434-6610 or click here for more information to learn more about how to decrease risk and protect your small business.

If your business is set up as an LLC, there are certain steps you must take each year to ensure that your business is protected from risk. LexLaunch.Com’s Tim Denker explains these steps to small business owner Kevin Oldham in Part 2 of our vlog series.  Ready to create your own LLC, at a reduced rate from typical attorney’s hourly fees?  Click HERE to learn more!

Launching your own business can be tough. When you’re the person responsible for every detail, working all hours of the day and night, it’s easy to feel isolated. However, building a strong support network is an important step in getting your new business off the ground and securing a firm foundation for the future. The experts at LexLaunch.Com have been where you are today, and have a few tips for creating the system of support every new business owner needs.

• Find a mentor. Be on the lookout for someone whom has qualities you would like to possess or has overcome challenges that you are facing. A mentor can be an invaluable asset when it comes to discussing new ideas or overcoming roadblocks. Don’t limit yourself to professionals in your exact line of work, but look for bigger-picture coaching and advising potential. Not only can your mentor serve as an advisor, but he or she can also introduce you to their network and resources. Mentors can be found through alumni organizations, business networking groups, or through mutual friends.
• Create an advisory board. Even if you’re just starting out, seeking the wisdom of others can give you a broader perspective before making big decisions. Advisory boards are helpful when planning next steps, determining finances and making decisions about hiring employees. Advisory boards also provide a level of accountability from the founder, keeping you on track to reach your goals. You can either reimburse members of your advisory board for their time, or ask them to serve as volunteers.
• Check out an incubator or accelerator. In the past few years, start-up incubators and accelerators have been popping up all over the country, giving new small businesses the opportunity to be part of a larger group for training, consulting and promotion. A quick Google search can guide you to opportunities available in your area.
• Involve your friends and family members in your journey–with a few exceptions. If you have trusted close friends and family members who are excited and show interest in your new adventure, involve them in celebrating the successes and working through the challenges of your company. However, it’s best not to waste your time and energy convincing naysayers that what you’re doing is going to be successful. While these pessimistic confidants might tell you they’re “looking out for your best interests,” they can also stall or derail your journey to success. Surround yourself with friends and family who care about helping you build your new business, not tear it apart.

When you’re starting a new business, it’s important to surround yourself with knowledge and experience from personal and professional sources. If you are looking for reliable, affordable legal setup from attorneys with extensive small-business experience, call the attorneys at LexLaunch.com at (816) 434-6610 or click here for more information to learn more about how to decrease risk and protect your small business.

When you are just starting your new business, it can seem like there’s not time to do everything—because there truly isn’t. Time is one of the most precious resources you have, and if invested in the right activities, it can pay off in spades. However, if not managed carefully, time can easily pass before your eyes without anything gained. You must be intentional about how you spend time on your business. How can you take advantage of the precious time you have to complete those tasks that will ultimately move your business forward? These three steps will help.

1. Delegate, even when you’re the only employee. When you are starting a business, it’s easy to get caught in the mindset that you have to do everything for your company, from building the shelves to ordering product to setting up your website. This can leave you frustrated at best and exhausted at worst. Turning over simple responsibilities to others can free up large portions of your day, but you must be willing to give up responsibility for all tasks.Start with someone you trust: a spouse, a family member or a trusted friend. Give them everyday tasks, like running to the post office, purchasing supplies or delivering product to customers. Menial tasks can make those closest to you feel connected to your new endeavor, while you gain a few hours per week of time to focus on the business.
2. Blend your work and personal life. At first glance, this might seem against popular wisdom, but research has proven that adopting a flexible schedule decreases stress and increases productivity for new business owners. When you’re starting a new business, it is almost impossible to separate work life from personal life or keep designated “office hours.” Be flexible to carving out spaces of time when your family is less likely to need you, such as getting up early in the morning before the rest of the family and checking e-mails, or balancing your accounts after everyone else has gone to sleep. Likewise, find moments in your workday to disconnect when your family needs you, such as at sporting or school activities. Vow to eat at least 4 meals together per week. By integrating your work and personal life, instead of trying to separate it into two distinct categories, you will develop a flexibility that will allow for extended time to work on your business.
3. Say “no” more often than “yes.” Being overloaded doesn’t make you more productive; on the contrary it increases stress and decreases focus. Evaluate every action you take as a small business owner. Before agreeing to attending a meeting, or even going for a cup of coffee, it’s important to ask yourself what clear value the activity is providing to move your business ahead. Ask yourself if the opportunity will be a good investment in terms of time spent and anticipated results—just like you would do if you were purchasing a new product or service for your business. You will find that saying “no” can be just as valuable to your business as saying “yes.”

Managing your time will continue to be a challenge as your business grows from early stages into maturity. However, if you learn to use basic tools to manage and carve out time early on, and value results-driven time investments, you can take charge of your schedule and move your business forward without the stress that comes with having too much to do and not enough hours in the day to do it. Interested in learning more about securing a firm legal foundation for the future of your company?  Call the attorneys at LexLaunch.com at (816) 434-6610 or click here for more information to learn more about how to decrease risk and protect your small business.