SMALL BUSINESS LEGAL MISTAKES - AND HOW TO AVOID THEM
June 25th, 2018.



Karen Holden of A City Law Firm has represented hundreds of tech businesses and sees the same issues time and time again. Here's what to look out for and how to navigate the legal minefield.


This month my company (A City Law Firm) marked our ten-year anniversary, which has made me think back to our first year, how we started and some of the early mistakes we made. For one thing, within a year of our launch, we had to restructure the entire business and there were so many hurdles we had to overcome – in the early days it really was about survival.

What’s fascinating is many of the mistakes we made back in 2008 are the same mistakes that many tech start-ups make time and time again. I know this because over the past decade we have represented hundreds of tech businesses – from start-ups to big businesses – and I find that time and time again the same issues crop up. So what are they?

Not having a strong shareholder agreement – or discussing, formulating and documenting the business plan with co-founders
I intended to found my business with three others, however, I soon realised that our goals and objectives were sadly not aligned; our work ethics were very different and our long-term motivations out of sync. Luckily, I had drafted a very good partnership agreement so managed to break free from what would have been a disastrous relationship. This enabled me to continue with A City Law Firm with just me at the helm, but not all businesses I have encountered can say the same.


For the full story at smallbusiness.co.uk CLICK HERE.