Law takes care of the creativity, structure and relationships that make your business healthy and vibrant. The legal tools that do this are things like contracts and copyright/trademark laws. That’s a pretty compelling “why.”
Law also takes care of your business in two basic ways. First, it protects your business from unfair competition and from individuals engaging in illegal activity such as fraud. Second, the law also actually “grows” your business.
That may sound surprising – that the law “grows” your business – but I think that this concept is important to look at as far as how law can help you make your business what you want it to be. It has been my experience that the most common reason business owners ask legal questions first is based on what they can do to “protect” their business.
How Can Law Protect Your Creative Business?
The right business entity protects your personal assets from liability and can save you some tax exposure. A trademark protects your brand from use by others. A copyright protects your original work from copying, distribution, use and related activities by others without permission. Agreements protect the interests of your business and the commitments it makes in relationships.
These protections bring you peace of mind. I’ve watched it in my clients. They feel solid, they feel secure, and they no longer feel the need to constantly look over their shoulder.
After you have a basic understanding of how law protects your business – and the ways in which you need that protection – you can start to ask the really strategic question: “What can law do for your business?”
I know I am moving along fast, but I want to give you the big picture.
What Can Law Do for Your Business?
This is the piece that really gets me excited. Law can help your business be what you want it to be if you ask: “How can law support my business?” “How can law grow my business?”
The right business entity – paired with an effective business model – gives your business structure. All creativity needs is structure. It needs a container to live and grow in and to give it shape. The right business entity gives that to your business.
Contracting and using your creative work is really where the power is. That’s what information products and licensing programs are doing – leveraging creative work to grow your business. The legal tools of trademark, copyright and contract allow you to do that. This is why it is important to have those fundamental pieces in place.
Agreements provide clarity and structure to your relationships both within and outside of your company. They also expand your business’ reach.
So you can see that law takes care of creativity, structure and relationships in your business in a pretty compelling way. So spending time to think about and explore “why” law matters to your business will be time well spent.