Starting your own business may seem like an exciting adventure or even like the beginning of a new life! Yet, the world of startups involves certain risks which are mostly ignored or misunderstood, even by the most ambitious entrepreneurs.
Several factors may contribute to the success of a business and some of them are more critical than others. To that end, the team of Brouillette has listed some essential aspects to consider when creating a business.
Here are 5 aspects to consider when creating a business.
1. Chose and protect your brand name
Many companies have the misconception that simply registering their name at the Enterprise Register (REQ) or owning a domain name grants them full rights regarding their trademark.
For this, you must ask yourself: what is a good trademark ?
From a legal point of view, a good trademark must be:
- Simple and Original
Once your name is adequately chosen, it is important to protect it without delay, which means that it is suggested to file a trademark registration as soon as possible.
2. Protect your innovations
Entrepreneurs don’t always have the reflex of creating barriers to entry and protecting their innovations. Many are not even aware that their innovations are protectable.
For example, avoid premature disclosure of your innovations with a non-disclosure agreement (NDA) and make sure that your intellectual property actually belongs to the company and not to the inventors.
3. Avoid co-founders’ disputes
- Because the success of a company is also based on healthy relationships at work, a harmonious atmosphere and a united team, it is essential to know well your future co-shareholders/partners. Make sure that all co-founders understand the extent of their rights and obligations to each other (the signing of a good shareholders or Partnership agreement is highly recommended).
- Choose the legal structure that best meets your needs.
- Think about your finances; establish a financial structure (debt, share-capital structure, grants, tax credit R&D) for your company that will you to grow in the future.
4. Educate yourself!
Certain aspects that may seem trivial must be closely examined. Among them:
- Be aware of Employment Standard Laws.
- It is important to check whether your activities are part of a regulated industry and to obtain the necessary permits.
- Make sure to be well equipped by having at your disposal good contracts depending on the nature of your activities
- Ask yourself fundamental questions on where to incorporate, ie federal, provincial, or elsewhere.
5. Surround yourself with the right people
Finally, it is very important to surround yourself with competent professionals throughout this adventure.
Lawyers and accountants often contribute to the proper functioning and development of your business, and most importantly, they take a weight off your shoulders.
These five aspects are not the only ones to consider, but they are key factors for the success of businesses of all fields.
Do not hesitate to protect yourself by enjoying the advice of our professional team.