If you're launching a business or expanding an emerging one, Morgan's sentiment may sound like something you've thought or said yourself.
At no stage of a business's life does Morgan's desire resonate more forcefully than in its first few years, when the name of the game every morning is, "Make it happen"
Early legal challenges may at first appear marginal to overall business goals, but if ignored they can compromise those goals.
If the principals have the passion to commercialize a good idea and make necessary sacrifices, they can build a success story. From the start of the process, one of their core responsibilities is to keep in mind key legal issues that will, sooner or later, shape the company's future for better or worse.
This is among the first steps many entrepreneurs must take. It is crucial that you know not only how to assess your company's financial needs but also how to obtain financing using the best method and at the best time possible.
Whether you elect debt or equity financing, you should have a full appreciation of contracts with banks, investors, venture capitalists and other available financing vehicles.
The rights created by copyright, trademark, patent and trade-secret laws are your lines of defense and should be erected as soon as possible, particularly when an emerging company is competing against established businesses.
Too many companies in the tech sector have jumped ahead with a new technology, challenging a Goliath like Microsoft, only to have the Goliath stampede it with a similar release or steer the marketplace in a different direction.
In this context, understanding the market is key. How large is the market? What innovations are driving it? Who are the competitors?
The contracts to commercialize a product or service are as critical as protecting intellectual capital. Ignoring them, as emerging companies often do, can lead to channel conflict between distributor or enable customers to compete against you by repackaging your product.
The entity chosen -- corporation, limited liability, partnership, etc. -- will depend on tax and liability goals. Without proper planning and execution in this area, the principals may find themselves saddled with unnecessary liability and tax payments.
Once established, of course, companies need smart, dedicated people capable of realizing the principals' vision. In assembling the management team there are further contracts and legal
concerns.
The company wants to ensure it owns inventions developed by employees and needs to preserve trade secrets. Meanwhile, prospective executives will seek compensation and severance agreements, and the company should plan for stock-option programs or other incentives to avoid losing talent.
Financing, protecting assets, entity formation and forming a management team all lead to consequential legal decisions. Legal advice to startups and emerging businesses should zero in like a laser on helping you "make it happen," whatever "it" may be, thus setting the stage for success.