Introduction

Article written by Tanya M. Marcum & Eden S. Blair.

Entrepreneurs make numerous business decisions each day, many of which have legal implications. Due to a lack of time and knowledge, however, these entrepreneurs too often make quick decisions regarding important matters. Entrepreneurs take the time to learn about and understand the implications of these decisions on long-term sustainability, liability protection, and growth potential. Cost to compare and make decisions has an impact on three issues with legal implications. Also gives some solutions to help prevent this from happening.

1.Entrepreneur as decision maker

Entrepreneur make multiple business decision such as the choice of business contracts, founders, agreements, intellectual property and selection of advisors. The key to being a successful entrepreneur lies in making few mistakes. The over simplification of decision can put the entrepreneur at risk. The legal impact of decision on entrepreneur business is a fundamental startup phase.

2. No time to think; No time to learn

Entrepreneur are not good as managerial and planning task but they are much good with creative task. Primary factors that entrepreneur is used to make is cost, because its involves numbers. Entrepreneur will often utilize both time and expertise.

Waiza Waheed
11123002

3. Three immediate legal issues impacted by

short-term decisions
I. Business Entity Information II. Founders agreements and other contracts III. Intellectual Property

3.Three immediate legal issues impacted by short-term decisions (contd)

3.1.Business entity Information
Selection of the most appropriate business entity for a particular ventures is a important and complex decision. A single entrepreneur may choose to do business as a sole proprietorship.

3.2.Founders agreements and other contracts

Founders agreements are one of the most important long-term contacts. Founders agreements are less expensive and less time consuming. An arbitration clause would allow for any potential disputes over the contracts. 3.3.Intellectual Property Entrepreneurs should save (IP) rights from the competition. IP includes two main categories:
registered, ( trade mark, copyright) Unregistered

4. A Team-based approach to professional advice

Decision that must be made in order to minimize risks and maximize goals and profits. Entrepreneurs are often described as dreamers, and can struggle with facts and analysis. [Khandekar & Young] Managing the legal process of entrepreneurship is of higher importance to the entrepreneur then owners/managers of own firms.
Under-reliance on professionals Over-reliance on one advisor

Arsalan Saleem
11123001

4.1. Under-reliance on professionals

Team based approach is important, lawyers, accountants, consultants, and other professional advisors are not utilized as well as they could be by entrepreneur. The cost of advice is higher then the cost of no advice.

4.1. Over-reliance on one Advisor

Over-reliance on one professional may result in an entrepreneur making decisions based on a single major factor. It is critical that an entrepreneur understand all advantages and disadvantages of each decision.

5. What should Entrepreneurs do?

Entrepreneur should have the basic understanding of these legal issues. Seeking advices from professionals can save time and future cost. Educating themselves regarding the strategic and legal ramification of decisions .
Get advisors early Budget/Raise Capital Team Approach Concluding by reflecting

 5.1. Get advisors early

Professional can serve as wonderful allies to the entrepreneur by identifying and explaining potential benefits and risk associated with business. Entrepreneur should utilize their networks of friends, family and business associations .

5.2. Budget/Raise Capital

Entrepreneur's venture is unique thus its financial forecast will also be unique. Entrepreneur's often try to bootstrap their ventures by findings creative ways to keep cost down.

5.3. Team Approach

Relaying on one advisors often limit the world view of the venture. A consulting team helps seek advise from individuals with different areas of expertise, allowing to make knowledgeable and well-rounded decisions. It will maximize the benefits and reduce the legal risks.

5.4. Concluding by Reflecting

Reflection involves careful consideration with a better understanding of the consequences of different decision. The question is; How might an entrepreneur reflect?
They can educate themselves , internet has a wealth information from reliable, sites including professional organizations , which are most the free. Workshops Panel Discussion Classes 30-60 time each day to reflect on impending decisions.