From Legal Chaos to Startup Success: Know it Better.Do Better

“Can you be our lawyer?” asked my friend who had recently embarked upon her startup journey and was eager to get everything right.

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I had never taken on the role of an in-house counsel but wanted to help out my friend so hesitantly said yes. After all, I had been the one to point out some crucial details that needed attention so now I had to help her out.

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The startup had been operating for almost a year and the legal side had been ruthlessly ignored, as the team was focusing on the main business.

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Initially, I felt exhilarated but soon it evaporated as I realized how much I had to achieve and it was only me, myself and I. My fear kicked in and I will be honest there were plenty of times I thought about quitting but the founder was a dear friend and she was counting on my legal acumen to set things right.

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So, first things first. As it was impossible to fix everything at once, I focused on the essentials that needed immediate attention and started from there.

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I am writing this to help any lawyer or startup out there so they can benefit from my experience:

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1.??? I started by reviewing and updating foundational corporate documents: Articles of incorporation, by-laws, LLC documents, and other core documents that had been prepared in haste using generic templates. It is crucial to tailor them according to the company’s needs and profile.

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2.??? Ownership stakes were not clear and stood shady, so I worked on organizing and maintaining the capitalization table (cap table): Remember a well-structured cap table is essential for tracking ownership stakes and facilitating future investments.

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3.??? Next, I had to establish some robust HR policies which were almost non-existent at that time: Prioritize developing comprehensive policies to ensure compliance protects the organization.

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4.??? I had to identify the contracts that were used most frequently by the company and create templates: It implements a streamlined contracting process to enhance efficiency.

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5.??? As it was a software company and was storing data of customers, I had to address data privacy and security by developing and implementing appropriate policies and procedures: You must stay proactive in managing data privacy and security issues by conducting regular audits and staying informed about relevant regulations to update your policies in place.

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6.??? I had to see what are all the laws and regulations that applied to that startup to comply with them, such as employment, intellectual property, and other related regulations: Develop compliance programs tailored to the company's needs to mitigate risks.

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7.??? Since there were intellectual property (IP) matters involved, I had to identify and protect the company's valuable IP assets by registering them and making sure the company owned all IP without any encumbrances: Implement IP policies and procedures to safeguard the company's intellectual property rights and assets.

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8.??? I had to make sure there was a system in place to manage contracts effectively: To track the status of contracts, including renewal dates, termination provisions, and key obligations.

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9.??? I had to understand the business of the company and law related to that specific sector, so I started attending webinars and seminars that were tackling the same subject and also to stay informed about the latest regulations: It is important to stay up-to-date with changes in relevant laws and regulations that may impact the company's operations.

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10. Since I had a free hand, I tried to foster a culture of compliance and ethics: Educate employees on legal and compliance matters through training programs and ongoing communication.

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I hope this short check list helps anyone out there starting on this journey.

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One thing that really helped me tackle all of this was attending seminars and I also undertook a 3-day course to update my knowledge. Seeking knowledge not only boosted my confidence, but I also met my co-founder of our own startup Marjorie Sudrow . She had been teaching legalities involved to startups, lawyers, individuals and organizations, and what I loved about her way of teaching was that she ran it through stories and it all became so easy to understand.

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Now I have partnered with her and we bring you the best startup course (soon to be launched). Our unique way of sharing knowledge is very easy to understand, interesting, interactive, practical and up-to-date.

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So, write to me if you are interested and I will share more details, or stay tuned to know more.

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