Failure preparations for a more successful business plan

By | Business Attorney, Business Lawyer, Business Lawyer in Miami | No Comments

Aspiring Florida entrepreneurs might want to avoid negativity during their early days of commerce. However, it is important to realize that only one-third of new businesses survive beyond 10 years of operation. In fact, nearly one-third will fail within their first two years, and half will go out of business by the five-year point. Although a founder might want to focus primarily on the potential for the business to grow and succeed, there are many situations that can deter these goals. In creating a business plan, it might be wise to include strategies for addressing potential issues that could cause the company to sink.

A business plan traditionally focuses on a few major aspects of operation. The product or service at the center of the company should be clearly explained. Additionally, the market and strategies for distribution should be covered. There should be an explanation of company staffing and management, and financial projections should also be provided and explained. A failure plan can be included in the business plan to identify how potentially damaging situations will be addressed.

There are several common pitfalls that can sink a business. For example, a catastrophic incident could decimate a company’s inventory, especially if there isn’t a good business insurance policy in place. A staff change could be devastating if certain parts of the operation depend heavily on that party, making it important to consider good retention practices. Financial problems can put an entrepreneur out of business as well. Reliance on a single product or a key client can also be devastating if there are major changes.

It may be impossible to anticipate all possibilities during the business formation process, but legal advice could be helpful so that some protective measures are incorporated into one’s business plan. A lawyer might help with non-compete agreements for employees, intellectual property protection strategies and other areas in which a client’s business could face risks.

Business Lawyer in Miami

Florida entrepreneurs must plan startups carefully

By | Business Attorney, Business Lawyer, Corporate Lawyer Miami | No Comments

Research on what it takes to start a successful company reveals that enterprising Florida residents need more than mere ideas. Although startups are founded via various methods, such as incubation and investment searching, industry insiders say there are a few common steps that should precede applying to accelerators or outsourcing. To secure funding, entrepreneurs must define their ideas clearly and concisely, do the research to identify a target market and prove the idea fulfills a need. This begins once one builds a development team and create a viable pitch.

Different startup platforms and accelerators provide unique returns. For instance, while Y Combinator, TechStars and other accelerators offer large investments in the $100,000 range or higher, they demand higher equity than firms that provide lesser amounts. Application processes also vary, with some accelerators accepting applications biannually and others taking applicants quarterly or even more frequently.

Accelerators select a small number of companies from the thousands of applicants they receive; these pools are then narrowed down via interviews and screenings until only a few startups remain. Entrepreneurs do not necessarily have to adhere to the potentially tedious accelerator process, however; people can also save up money, pursue alternate loan sources and keep things in house to retain more control over the resultant startup.

The nature of a startup company impacts more than just the kind of funding opportunities its founders can access. Companies launched as specific kinds of corporations may have unique tax obligations or be subject to rules limiting when and how they can enact mergers and other agreements. Entrepreneurs often research business laws prior to actually implementing their ideas in order to minimize fiscal setbacks and anticipate potential legal roadblocks. A business law attorney might be able to assist throughout this process.

Alleged breach of contract leads to litigation

By | International Business Litigation | No Comments

According to a lawsuit recently filed by the commercial reseller MicroTech, Hewlett-Packard’s Autonomy unit, purchased by HP in October 2011, owes MicroTech either $16.5 million or the license keys to software it purchased from Autonomy. The transactions that are the basis of the breach of contract claim took place prior to HP’s acquisition of Autonomy. MicroTech is a federal systems integrator that distributes to several companies throughout the country, including Florida. The lawsuit against the Autonomy unit was filed in the U.S. District Court for the Northern District of California.

In its lawsuit, MicroTech is alleging breach of contract. The company claims that in March 2010, MicroTech paid $11 million for software for the Vatican Library, and in June 2011, it paid $7 million for software for HP. However, HP claims that Autonomy paid MicroTech $8.2 million for software that Autonomy neither requested nor received. HP also states that funds were transferred several ways during the Vatican Library deal.

HP is involved in commercial litigation of its own against Autonomy’s founder as well as its former CFO. The company claims that the two acted in such a way as to cause Autonomy to overstate its growth, revenue and profits. HP’s acquisition of Autonomy was valued at more than $10 billion. This lawsuit was filed in the High Court in London.

Breach of contract lawsuits can be highly technical, and a plaintiff may have a choice of several remedies to pursue. Many companies who are involved in these types of disputes find the advice and counsel of a business litigation attorney to be helpful.

Source: CRN, “MicroTech Fights Back In HP Autonomy Dispute With Breach Of Contract Suit”

Sources of capital for new business ventures

By | Business Attorney, Business Lawyer, Business Lawyer in Miami | No Comments

Entrepreneurs in Florida and other parts of the country often say that gaining access to start-up capital is one of the most difficult parts of getting a new business up and running. It can be difficult to qualify for traditional bank loans without established income streams or assets that can be collateralized, and venture capitalists interested in rapid returns may be unwilling to sit idly for years as a business goes through its nascent stages.
Opportunities are generally fleeting by nature, and entrepreneurs hoping to gain a march on their competitors sometimes choose to fund fund new business ventures with credit cards or other easily available sources of capital. They may feel that high interest rates are a decent exchange for quick access to needed cash, or they may plan to refinance their debt at lower rates once their business is established enough to qualify for a conventional bank loan.

Launching a businesses can also be financed with funds borrowed from friends or family members, and entrepreneurs sometimes take out home equity loans or second mortgages to get their commercial ventures off the ground. Professional investors are often hesitant to lend to entrepreneurs without a track record of business success, and it may be easier for business owners to qualify for government loans from the Small Business Administration. However, while SBA loans may have more flexible underwriting guidelines, they also require copious amounts of documentation and have strict reporting requirements.

Attorneys with start-up company experience may be able to help entrepreneurs to avoid poor financial decisions by reviewing financing documents and comparing their terms and conditions with those offered by other providers. Attorneys could also caution business owners about the risks of becoming financially obligated based on projected future income.

Keeping data safe during a Florida business transaction

By | International Business Attorney, International Business law, International Business Litigation | No Comments

During a merger or acquisition, a company may be so engrossed in completing the transaction that it loses sight of safety protocol. However, security breaches during the negotiations could compromise the safety of customer or employee information. This could cost one or both companies involved in the transaction a lot of time, money and goodwill. Therefore, it may be a good idea to create a data security protocol throughout the transaction.
The first step is to identify whether the data is internal data or external data such as customer information. After identifying what the data is, it is worthwhile to check any applicable laws surrounding how that information must be handled prior to sharing it with a third party. A nondisclosure agreement should then be entered into before sensitive or personal information is exchanged.
Employees need to sign consent forms that allow information about them to be disclosed to third parties. An attorney may be able to make sure that consent has been granted by all employees before the due diligence process commences. Having a lawyer as part of the transition team may also increase the odds that other industry specific best practices are being followed during the transaction.
When two companies merge or one is acquired, a lot of data has to be shared between the two parties. This puts a premium on data security and ensuring that privacy and other laws are followed at all times. Companies that are concerned about data security during such process may wish to obtain the counsel of an attorney who has experience with these types of corporate transactions in order to oversee the process and help to ensure that no one is taking any actions that may put personal or proprietary information in danger.

Planning for the loss of a signifiucant business leader

By | Business Attorney, Business Lawyer, Business Lawyer in Miami | No Comments

Many businesses in Florida and around the country owe much of their success to the drive and vision of their founders or a senior executive, and several of them would face an uncertain future if this person were to retire unexpectedly or pass away. While larger companies may be better equipped to to handle this kind of transition, even businesses that have become household names may struggle when an iconic figure is no longer at the helm.
Like many aspects of success in the marketplace, making plans and taking intelligent proactive steps are the keys to dealing with the loss of an important business leader. Proactive measures could include identifying the key people within the business and putting recruitment plans into place designed to fill the void that they would leave as quickly and efficiently as possible. Uncertainty and overreaction among shareholders or others who have contributed to the growth of the business could be prevented or minimized if they are made aware of these precautionary steps.
Many businesses could learn much about planning for the loss of key personnel by looking at how successful sports franchises cope with losing star players. Some teams never seem to recover after a marquee player resigns, but others seem to go from strength to strength. The difference between moving ahead and becoming mired in the past is often the willingness to accept painful inevitability combined with careful planning and decisive action.
Attorneys with business law experience will likely be familiar with seemingly strong companies that faltered after an important individual moved on or passed away. Business owners are often focused on growth and expansion, and they are sometimes prone to not looking inward until a problem has developed. An attorney could help entrepreneurs to see things in a more rounded way by pointing out vulnerabilities such as a heavy dependence on key personnel, and legal counsel may suggest that steps be taken in advance to address

International Litigation: Ongoing patent dispute between Samsung and Apple

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A dispute over patents between Samsung Electronics Co. Ltd. and Apple Inc. may be resolved through mediation. The decision to mediate this matter appears to have been directed by the court as this matter is otherwise set to go to trial in March.
The two parties and their attorneys have already discussed possible settlement options on various occasions. This case revolves around use of technology contained in Samsung’s latest smartphones which would include the Samsung Galaxy S3.
There appears to be a long history of an international litigation concerning intellectual property disputes between the two large companies. There have been disputes regarding patents involving handsets and tablets that have been marketed around the world.
In one patent infringement lawsuit already tried in federal court, the jury ordered Samsung to pay Apple $930 million for alleged intellectual property violations. Other trials have taken place concerning the corporations as well.
One only needs to look at the number of dollars involved to understand the importance that international litigation attorneys will play in these matters. When it comes to patent disputes over products sold in Florida and around the world, we are also dealing with a variety of sometimes conflicting laws and regulations.
These matters are also not isolated instances. Even a verdict of close to a billion dollars does not mean that the international litigation between business rivals will come to an end. Each side has its own set of business interests to protect, and any compromise, negotiation or an international litigation concerning a dispute needs to be conducted with the benefit of the corporation in mind.

Source: International Business Times, “Apple, Samsung Agree to Explore ‘Settlement Opportunities’ in Patent Dispute,” Sreeja VN, Jan. 9, 2014


Florida Business Attorney

A Small Service: Florida Business Attorney

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Not every small business owner in Florida sells a physical product. Many people are able to make a good living by selling a valuable service that they can provide. A small service business may offer things like written content, Florida Business Attorney, computer repairs, consulting or expert coaching. Unless a service requires expensive equipment, the business model usually has a low barrier to entry.
A team of people may start a service business together, or one person may offer their freelance services as a solo venture. Whatever way a service business is organized, it is important to have a business plan that includes an operational model, a detailed list of expenses, monthly earnings targets and clear goals for the future.

It is very important for a service business owner to know how long they spend performing a service so that they know what they should charge their clients. The billable hours that are spent working for clients will only account for part of the time that is spent on the business as an owner must also spend time marketing, looking for a Florida Business Attorney, doing taxes, creating invoices and communicating with potential clients. If the owner keeps track of how much time they spend on non-billable tasks, they can think of ways to streamline their business model and make their time more profitable.
Many people start selling services without a business model because they don’t realize that the freelance work they do is actually a home-based enterprise. A Florida Business Attorney may be able to help an independent service provider form a limited liability company and make sure that they are complying with business law. By creating a legal business structure, a business owner may be able to protect themselves from business liabilities.


International Lawyer

How hire an International Lawyer could benefit Florida entrepreneurs

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International Lawyer

People planning to start a business generally have to put together a business plan that addresses projected revenue, expenses and market forces. Lenders and investors ask for these plans before making financial decisions, but the entrepreneurs themselves could gain insights from the planning process. A study of entrepreneurs published in the International Lawyer Small Business Journal revealed that planning activities improved the chances of business success.

The authors of the study analyzed survey results and suggested that taking the time to plan allowed entrepreneurs to gain new insights, confront their own biases, consider competition, hire an International Lawyer, and adopt new views. The business people surveyed not only discovered new ideas about the market potential of their businesses, but they had to consider their own competence as well.
According to the study, a business plan should not be rushed. Twelve months of planning allowed for significant fine tuning of plans. This time period gave business people a chance to research the potential for market development and carefully project financial performance. A lengthy planning process influenced the decisions of both serial entrepreneurs and beginners.

Someone about to embark on a new business venture might choose to include an International Lawyer in the planning process. Depending on the nature of the proposed business, an attorney could research important issues like local laws, foreign and domestic regulations and corporation formation. Additionally, an attorney could inform the person about rights and legal responsibilities during negotiations with business partners and investors. An attorney could draft the terms of partnership agreements or articles of incorporation. Other legal information that might influence business decisions could be tax laws, employment contracts and real estate purchases. An attorney might have the resources to help the person navigate these issues and make informed decisions.


Corporate Lawyer in Miami

By | Corporate Lawyer Miami | No Comments

Do I need a Corporate Lawyer in Miami?

The United States has the highest corporate tax rate among all developed free-market countries. There have been arguments that these rates should be reduced because it encourages businesses to invest globally rather than at home or, in some circumstances, to simply leave the U.S. There certainly is a concern about job loss in the event that such actions occur. So, do I need a Corporate Lawyer in Miami ?

Corporations are paying at a federal level a marginal tax rate of 35 percent. Add on state taxes and these companies are then paying at a rate of around 39.2 percent. According to a Corporate Lawyer in Miami, the global average for corporate tax rates is 25 percent.

Our businesses are also paying what amounts to double taxation when it comes to foreign income that is earned. This is because the U.S. taxes income that corporations earn abroad. Most other developed nations do not tax foreign income in this manner and arguably provides foreign companies a competitive advantage.

Unfortunately, we are not likely to soon see any changes. Interest groups will all have their say when it comes to an extremely complex code and a large number of reform proposals will never be properly addressed.

The corporate tax rate may be causing many businesses to search for the lowest-cost option by possibly locating elsewhere. Businesses also will choose to spend rather than engage in long-term saving as the money they spend is often written-off as a business-related expense, according to a Corporate Lawyer in Miami

We do not want to continue seeing businesses in Florida and elsewhere fleeing the country for greener pastures. What may instead be required is a global business strategy that businesses can use to reduce their tax liabilities and remain competitive. Business law attorneys can help companies address a variety of concerns and put together such a strategy.

Source: Investopedia, “Do U.S. High Corporate Tax Rates Hurt Americans?” Amy Fontinelle, May 16, 2014