Potential investors, acquirers and commercial partners, among others, will scrutinize a company’s intellectual property to determine its value. For example, they will focus on whether a company actually owns the intellectual property it claims to own and whether the intellectual property can serve as a foothold against larger, established companies in its sector or other competing startups. As a result, from inception start-ups should focus on establishing a clear “chain of ownership” of their intellectual property and be thoughtful about the means by which they protect their intellectual property.
Best practices to protect your start-up business
Structure your business
Making sure to choose the right structure for your business is key for multiple reasons, from organization to future development. The different options will come down to what works best for your own unique situation. You will also need to apply for a tax ID number and the proper permits and licenses.
Business owners often assume that they will never need insurance. But in a worst case scenario, you will be thankful you have it. You should consider taking out commercial liability insurance to protect your company in the instance that you are being sued by a third-party, such as a customer.
Whether your business is taking on colleagues in the near future or not, it is important that when you eventually do expand your workforce, you fully abide by employment rules and provide a safe work environment for your employees.
Secure with cybersecurity
It’s not just your physical property you need to protect. Making sure that all your data is secure with comprehensive cybersecurity technology and measures is important when handling customer and colleague data.
Pay your taxes
While this may sound like an obvious statement, it is important to make sure that you pay all taxes to keep your business trading legally.
Protect your intellectual property
Whether your business is in its early stages of growth or you are growing your brand, it is important to make sure you trademark or copyright your assets, like logos and branding.