| As a business owner, it is important to know what | | | | deal with marketers and venture capitalists. Many |
| kind of entrepreneurs you are going to hire for your | | | | capitalists in ventures say that they often rate |
| marketing needs. You must know the qualities that | | | | judgment of entrepreneurs by the choice of legal |
| you would be looking for in these individuals as they | | | | counsel they choose. Hiring lawyers that do not have |
| are the ones who will be running a major part of | | | | experience working with businessmen will most likely |
| your business. It is important that as you choose the | | | | focus on the negative side while they fail at |
| marketers that you will involve in your venture, you | | | | recognizing some of the obvious traps. It is far |
| must familiarize yourself on how they are going to | | | | better to hire a person that is used to playing the |
| operate. Learning what the common mistakes of | | | | game of entrepreneurship compared to one that is |
| entrepreneurs are can be very helpful for a business | | | | not. Lawyers that are experienced in dealing with |
| owner to assess employees that are going to be | | | | these types of people can easily close negotiation |
| hired to do the marketing. | | | | deals at a prompt manner. They can also provide |
| A common mistake that entrepreneurs do is the | | | | smart advice to the business owner when it comes |
| so-called "forgotten founder" issue in which a partner | | | | to encountering common issues that entrepreneurs |
| involved in a business drops out in its initial stages. | | | | have. |
| When the venture gets funded or is already | | | | Although it is important to negotiate each venture |
| prepared to deploy on the public market, the partner | | | | capital, valuation should not be the only thing to |
| returns along with a view that they had contributed | | | | consider when selecting one or when making a deal. |
| to the business design. This is a problem that can be | | | | Venture capitalists have many other ways to get |
| eliminated by incorporating issue shares to the | | | | compensated if their shares end up being high. |
| founders at an early stage. As part of the | | | | Activities included are participating in preferred high |
| consideration for shares, each founder should be | | | | cumulative dividends, exercisable redemption rights |
| required to assign a new corporation long with | | | | after several years and a ratchet of anti-dilution |
| everything it has to the proposed business of the | | | | protection with no caps. |
| company. By planning early, before anything | | | | An aspiring entrepreneur or a business owner should |
| significant has been created or established, it | | | | know what the common mistakes of entrepreneurs |
| prevents any financial problems in the future. If | | | | are. You would want to educate yourself in aspects |
| incorporated too late, it can create tax problems | | | | that are legal and illegal in order to avoid any issues |
| once the entrepreneurs start arguing about the | | | | and come up with a smooth running business. One |
| difference in stock prices. | | | | should practice the legal aspects of entrepreneurship |
| A common practice in the mistakes of entrepreneurs | | | | and corporate governance in order to not go against |
| is the inability to hire an experienced lawyer that can | | | | the law and pay a higher price in the end. |