Brooklyn Business Lawyer
According to the Brooklyn Chamber of Commerce, the 72 square miles of Brooklyn are home to over 62,000 businesses, 236,000 entrepreneurs, and 18 million potential customers. In recent years, the borough has blossomed into a hub of innovation, with tech startups, art and design, and creative services driving the local economy.
Since 2004, Brooklyn has enjoyed $300 million in public investment and generated over $10 billion in private investment. It’s no wonder that this exciting area inspires innovators, entrepreneurs, and new businesses of all kinds. And these new businesses can set themselves up for success by working with a local business lawyer.
Biggest Risks to Small Businesses and Entrepreneurs
According to the U.S. Bureau of Labor Statistics (BLS), less than 35% of new businesses make it ten years or more, and half of new businesses fail in their first three years. Business owners face a wide range of internal and external risks, and each should be considered during planning and assessment. The biggest risks that new entrepreneurs face are:
Financial Risk
Naturally all new ventures begin with a financial plan, but a typical small business has a tight budget with little margin for error. If the projected costs are higher than planned, revenues or income is lower than planned, or the path to profitability is longer than planned, a business is likely to fail.
Strategic Risk
Every new business has a strategy for success that includes identifying its target market, differentiating itself from competitors in that space, and projecting future revenues. However, not all aspects of a strategy can be fully validated before launching a business, and not all strategies will be successful.
Competitive Risk
A business always faces the risk that its competitive landscape will change as other companies revise their offer, new competitors enter the industry, or the market becomes saturated. A good business plan and strategy may not remain viable as other products and businesses compete in the market.
Reputational Risk
New businesses are especially vulnerable to reputational risk because one bad rating or poor review has far more impact than on an established business. New businesses need to not only provide excellent customer experiences but also maintain online and social media vigilance in order to protect their reputation and build positive brand communication.
Economic Risk
It goes without saying that every business is impacted by economic forces that are beyond their control. Changes to the economy, interest rates, and employment levels can affect market trends and consumer behavior as well as affecting the cost of doing business.
Environmental Risk
Natural and weather catastrophes are becoming a fact of life in many parts of the world, disrupting business operations and supply chains and, in some cases, impacting the daily way of life. Not only do these weather events pose a business risk, but many businesses may also be affected by new environmental regulations or policies.
Labor Risk
Successful businesses rely on having the right staff with the right skills, a perpetual challenge in many industries. Many companies find themselves not just competing for customers and market share but also competing for skilled talent who can deliver on the brand promise.
Supply Chain Risk
The pandemic demonstrated the enormous potential supply chain risks for companies around the world, and jeopardized many just-in-time manufacturing methods. For businesses that rely on complex supply chains, there is always a risk of disruption.
Political and Social Risk
Most countries around the world are experiencing increasing social and political divides, which increases the possibility of large, rapid changes in society. This type of rapid change always poses a risk to a company’s ability to plan, anticipate, and adapt to new regulations, new market forces, and new social pressures.
How Do I Minimize Risk When Starting My Business?
All successful businesses need to mitigate risk, but new ventures are especially vulnerable, particularly in the rapidly changing competitive atmosphere of Brooklyn. The best way to minimize risk is to assess and manage risk from the very beginning, during the planning phase. Some key areas for risk assessment are:
- Regulations and compliance. Depending on your business, your industry, and your location, you will be required to comply with a range of regulations, ranging from tax and finance laws to environmental and labor laws. This type of exposure can be mitigated in a number of ways, but it is critical to thoroughly understand the regulatory environment your business will operate in.
- Contracts and agreements. Whether your business has partners or employees, subcontractors or a landlord, the terms of your contracts can make or break a business. It is crucial for these founding agreements to be carefully reviewed and understood, so that risk and liability can be mitigated.
- Intellectual property. In many cases, trademarks, patents, and copyrights can be the biggest asset a business owns. Your intellectual property helps you secure your market position and increase your company’s value over time. Protecting your intellectual property can be complex and time consuming, but is incredibly important.
Every business has different risks and opportunities, so it is always best to consult with a Brooklyn business lawyer to understand your biggest risks and how to minimize them.
What Can a Business Law Lawyer Help With?
A business lawyer provides a wide range of expertise and advice, and their role often evolves as a business grows. Some of the most essential duties of a business lawyer include:
Company Formation
Choosing the right company type and filing all the associated documents correctly is one of the first steps in starting your business. A good business lawyer will not only help you form and start your business, but will ensure that your business formation strategy is compatible with your long-term goals, whether you intend to eventually sell your business, form a corporation, or leave it as a legacy for your family.
Contract Negotiation and Creation
All businesses rely on a range of contracts, and are in turn obligated by another set of contracts. A business lawyer creates employee and vendor contracts, negotiates partnership or expansion contracts, and reviews license agreements, leasing agreements, and other types of contracts to protect your rights and your assets.
Real Estate and Property Agreements
From office space for your headquarters to warehouse space for your product, the physical spaces and facilities of a business are a key investment. Commercial real estate leases in Brooklyn can be complex, and purchasing business property can be even more complicated. A business lawyer will help navigate and negotiate these real estate agreements to find the right locations for your operations.
Navigate Mergers and Acquisitions
Mergers and acquisitions are another complex area of contract law that a business lawyer can help with. Contracts, insurance, liabilities, and even employees need to be assessed and integrated with minimal risk. Title transfers and regulatory filings should also be completed by a business lawyer.
Manage Compliance, Risk, and Disputes
A business lawyer helps your company mitigate risk, manage compliance, and resolve disputes on an ongoing basis.
Consult With a Brooklyn Business Lawyer
Every entrepreneur seeking to start a new business in Brooklyn should consult with a Brooklyn business attorney. A business lawyer can help you better understand your risks and opportunities, your regulatory and compliance risks, and chart your plan for growth. Over time, a business lawyer will continue to support your growing business in a variety of ways, protecting your interests and preventing disputes.
Choose a Brooklyn business lawyer who has experience with startups and entrepreneurs as well as a great reputation for supporting founders. The Fridman Law Firm provides legal counsel you can trust and cares about your success. Contact the Fridman Law Firm online or call 212-262-9823 to schedule your consultation today.