02 November 2009
It's a big step – some may say chasm – between that kitchen table "light bulb moment" and a multi-million business deal, but it's not an impossible one.
It's less than three years since budding entrepreneur Levi Roots set foot on Dragons' Den with his family's secret recipe for Reggae Reggae sauce. Six weeks later the product was in supermarkets and today Roots has been on the fast track to success and a millionaire lifestyle.
While not every good idea can hope for such success David Smellie, a partner in the corporate and commercial team at B P Collins, says that for entrepreneurs planning to start a new business, it is important to make absolutely sure the right building blocks are in place from the start.
"If you believe you have a great idea, a great product or a fantastic new service which everyone is going to want to buy, then it's essential to take steps to protect that idea before you go to market with it," he said. "Apply for a patent, ensure you have a watertight copyright or licence in place – don't wait until you start to become successful and then find someone else claims it as their idea.
"We see many corporate disputes turning in to legal battles because the right agreements haven’t been put in place from the beginning and that can be avoided by talking to lawyers and getting good advice. And, it will be substantially cheaper to spend money now, than in three years time when you have a successful business to protect and fellow shareholders or partners trying to take their share away."
Smellie recognises that most entrepreneurs want to spend their investment on product research and development rather than legal fees, and he is the first to say "don't buy a Rolls Royce if you only need a Mini".
His advice is to seek out lawyers who are sympathetic towards helping new businesses, look for those who have a track record in supporting similar ventures, who can be flexible and who are prepared to at least review and discuss ideas at an initial meeting without setting the financial clock ticking.
B P Collins is a well-known supporter of small businesses and has seen many success stories. One of its clients – where the business was initially launched from the main shareholder’s kitchen table – sold to a publicly listed company for in excess of £10 million, and the firm is well placed to offer advice and support to other similar ventures.
And, at the real start-up end of the market, the firm is involved in a series of Open4Business Workshops. Run by Bucks New University, the workshops see a series of professional advisers coming together to offer expert advice and support to owners of new businesses.
B P Collins' team of experienced corporate and commercial lawyers understand that clients expect pragmatic and commercial solutions. We are committed to building long term relationships that help our clients businesses to grow.
Please contact our corporate and commercial practice group on 01753 279022, complete the online enquiry form or email commercial@bpcollins.co.uk. |
