Start-up Ventures

Commencing a new business is 1 part genius and about 50 parts hard work. Setting off in a new commercial direction with a strong business idea can be hugely rewarding but it must also be done with some foresight and with a degree of caution. Small decisions made in the early days can have a profound impact on later stage business plans.

Start-ups usually encounter obstacles and challenges in the early days. Establishing proprietary rights that increase the value of the business, asset protection, funding, corporate structuring and properly devised incentive schemes are just a few to name.

Many start-ups revolve around a novel concept. Critically assessing the nature of the new concept is essential from the outset. If the new concept lends itself to a grant of patent, disclosing the idea prior to registration will likely deny future registration attempts. This means that your great idea might be available for anyone to copy.

Patent is not always the answer. A well-constructed intellectual property plan can deploy other strategies to help protect a business going forward and build value for the owners. Trade mark, design registration, copyright and the application of confidentiality provisions may individually, or in combination, provide a good commercial platform for a start-up venture.

In the rush to capitalise on a new idea, we frequently see small – but important – steps overlooked in the early stages. Questions that should be asked at an early stage include:


  • Is your ideal website available?

  • Have you registered a business name?

  • Should the entire concept be contained within a corporate vehicle or some other structure?

  • Does your new idea or name infringe existing statutory intellectual property rights?

  • Are there any tax implications?

  • Do you have a robust legal agreement setting out the proposed business plan and the role and expectations of the participants?

Entrepreneurs are keen to apply their (often minimal!) funds to product development but considerable care should be taken to protect the business going forward. The old adage of “an ounce of prevention is worth a pound of cure” still applies.


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