3 Reasons why your Sydney startup needs a small business lawyer

They’re young, they’re up and coming, and they’re providing an irresistibly good product or service. They’re Sydney Startups. If this is you and you want your business to grow old with grace and great revenue, you need a certain someone on board.

This certain someone will guide you through everything you need for success, including how to:

1. obtain funding and raise capital
2. select the most suitable business structure
3. attract the best people.

Don’t get us wrong, kombucha on tap and midday yoga classes are great ideas. But, advice from a Sydney small business lawyer deserves a prominent spot in your startup too. And don’t worry. All the above can happily co-exist, but if we’re talking longevity, prioritise the latter.

Let’s dive into how a Sydney business lawyer can benefit your business. First things first, is your business up and running? If that’s a negative, it might be time to raise some capital.

Do you need to raise capital?

Whether or not you need to raise capital depends on:

• the size of your business;
• any up-front costs; and
• the type of business you’re hoping to launch.

What does the capital raising process involve?

From grants and crowdfunding to family and friends, there’s a whole host of options for funding these days. And the process of acquiring capital will look different for everyone. So, before you ask every man and their dog, consider first which funding possibility will be most viable.

Enter the business plan. Preparing a detailed business plan will help you determine the best funding option for your business. However, if creating a business plan isn’t your forte, it is your small business lawyer’s. We’ll sit down with you to explore your options and identify the most suitable funding source. At the same time, we can draft and review shareholder or subscription agreements and term sheets as well as advise you on corporate governance.

Following this, we’ll guide you through how to get your hands on the capital. Then, once you secure your capital, it’s time to look at business structuring.

What is the best business structure for a startup?

Selecting your business structure is one of the most pivotal decisions you can make as a startup. This is because the type of structure you choose will affect how your business operates and how you obtain finances. Your unique circumstances and business goals will dictate whether you set up as a:

• company;
• partnership;
• trust; or
• other structure.

Whichever road you go down, you’ll want to reduce potential risks and costs. And this is absolutely achievable with the proper legal guidance and support. For example, when you form a partnership, it is vital you appoint a lawyer to draft a partnership agreement. A partnership agreement sets out the terms for how your business will be managed in every relevant circumstance.  

Once you decide on the right business structure, it’s time to build your team. Working with an experienced startup lawyer in the business structuring stage is the smartest way to approach team-building. This is because, a lawyer will expertly draft your employee contracts. Once this is all tied away, how do you entice new talent and keep them around? 

Employee share schemes are a common tactic.

Should I set up an employee share scheme?

Employee share schemes are agreements that enable employees to receive or buy shares or other equity interests in a company as a reward for their employment. They can be a great initiative if you’re seeking to:

• improve employee retention and attraction;
• align your business and employee interests;
• provide employee incentives;
• offer flexible remuneration packages; or
• encourage productivity.

Employee share schemes benefit startups in particular by allowing them to share growth and success with their team. However, they can be complicated to set up. They are formal policies that require specific documentation. So, speak to a professional and experienced startup lawyer who can assist with drafting and implementing it correctly.

Finding the best Sydney startup lawyer

If the legal world of startups seems too daunting to dip your toes into, remember you don’t have to do it alone. Sure, a startup lawyer will help you navigate the hurdles of raising capital, structuring your business, and drafting agreements and T&Cs. But, the right one will also set you up for long-term success. Get in touch with our team today to learn more about how we can help you realise your startup vision.