Ignorance is not bliss for Founders | Safety Rules

Entrepreneurs are known for their passion and determination to solve social problems with innovations. However, in their pursuit of value and wealth creation, they often missed one fundamental aspect of business, that they need to protect themselves and their venture from unwanted future risks and situations. Every prudent entrepreneur needs legal support while involving people & organizations such as co-founders, partners, investors, etc. to build his start-up.

Over a period founders sign hundreds of these agreements with different stakeholders. However, most of them sign these documents first time without proper understanding of the terms and conditions, they are agreeing into. Sharing few commandments & golden rules for founders to protect themselves from future arguments, sufferings, legal fights or all together.

10 Commandments to deal with Contracts

1. All contracts are important. It defines relationships & consequences.
2. Draft your own agreements or read all agreement clauses and discuss with the other party line by line.
3. Always read between the lines. If you do not understand or agree with anything, NEVER SIGN. Beware of Conditional Sentences & Cross Referencing - Not withstanding Clause, Subject to, without prejudice to.
4. Always make notes on drafts, use track changes, color codes for clarity on obligations
5. Always read the whole agreement in one go & make notes. (Do not distribute this responsibility among co-founders)
6. Create a synopsis (1 to 2 page) of every agreement (50 to 100 pages)
7. Communicate (Email, WhatsApp) all actionable and obligations to be delivered by each party
8. Put emails, WhatsApp messages and record them. In court it will help to support any dispute
9. In every contract, there is one dominating party to give maximum liabilities. Make sure you bring them on equal footing (100% to founders, 0% to investors)
10. Consult a Lawyer

11 Golden Rules to be protected in any situation

1. Ignorance is not bliss in legal matters. Read Company law and clarify your doubts and queries.
2. Protect your brand more than anything. Be mindful whenever you deal any sensitive issue.
3. Having dialogues is the best way to sort your issues
4. Be transparent and fair in all your dealings. (Install cameras in your office, meeting rooms)
5. Promote high values, strong & safe culture (Love, Trust and Purpose as fundamentals)
6. Define processes and policies to promote openness and mutual respect
7. When you come across any legal issue, research and read online resolutions.
8. Use every single rupee of your company very carefully & ethically. (Fraud is a BIG CRIME)
9. Invest time in preparing legal documents for your customers, employees, investors, partners
10. Hire a lawyer, update him everything (business, operations, fundraising, etc.) and seek advice before signing any document.
11. Cost of justice is high.

Bonus: Download Legal Resource Document for original contracts, agreement templates and access to law firms & lawyers. (https://bit.ly/1f-legal-resources)