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There are some different opinions on the rate of failure of small businesses, but most analysts agree that greater than 90% of businesses fail in their first 5 years.  I am always reading stories focused on how a new entrepreneur can join the elite 5-10% that doesn’t go under.  However, just because your business doesn’t close down and can afford to keep the lights on after five years, doesn’t mean it is out of hot water yet.  Once you have found a market and some paying customers, what can you do to increase your revenues and profits?

According to an article I read recently on entrepreneur.com, there are only few ways to exponentially increase the value of your company in a relatively short period of time.

1. Win a government contract.  The US government is the largest buyer of goods and services in the world.  Requests for proposals require a lot of patience and up-front research and work.  But once you win a contract, you are not subject to the level of competition you typically face in the outside markets. (more…)

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This year will see the rollout of several new top level domains. In lieu of .com and .org, we will soon be seeing .NYC for the city of New York and .WM for Wal-Mart.

One of the widely noted new top level domains will be .XXX, which is intended to enable better filtering of adult content from search results.
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Real estate investment has always been a popular means of increasing personal wealth. Unfortunately, the current state of the housing market has caused potential investors to raise their guard and seek alternative methods when exploring new investment opportunities. Few, however, take advantage of the multitude of alternative investment strategies that exist within the real estate market itself.  A good example of these opportunities is Section 1031 of the Internal Revenue Code.  The Code gives investors an incentive to purchase new property and continue investing while making a profit.  (more…)

MWR Legal (www.MWRLegal.com) has teamed up with the Texas Entrepreneur Networks (www.txenetworks.com) to offer business growth and funding consulting to our clients.  Hall Martin is the Founder and Director of the Texas Entrepreneur Network and a past Director of the Central Texas Angel Network, and has connected hundreds of entrepreneurs with investors and other resources to accelerate the growth and success of high-potential companies throughout Central Texas.  MWR Legal will be working directly with Mr. Martin to comprehensively consult with our clients on the range of issues affecting entrepreneurs and their companies, including targeted business planning, market positioning, team and advisory board developments as well as funding and exit strategies, with the express goal of supporting MWR Legal clients’ growth and success.  This collaboration will add to MWR Legal’s unique combination of legal expertise and real world entrepreneurial experience.

Business Consultations are provided through MWR Legal, and access to Mr. Martin’s experience, expertise, and networks are a value-added service for MWR Legal clients. (more…)

Big changes are coming to the US Patent System! The America Invents act, formerly the Patent Reform Act of 2011 (pdf), has gripped the attention of the attention of the business world since it passed through the U.S. Senate in April. The bill originated as the Patent Reform Act of 2007 (under Bush) and returned to Congress in 2009, however, neither attempt to pass the legislation proved successful. The Patent Reform Act of 2011 will be the first REAL overhaul of the US patent system since 1952.

While beyond the scope of my blog to review all of the changes to the patent system that the AIA may bring, I want to address the most controversial change, which will be the switch from “first to invent” to a “first to file” system of awarding patent priority. (more…)

Start-ups and emerging companies demand focus on the bottom line (and most directly cash flow) for survival and growth. Lacking the freedom that comes with an influx of outside capital, bootstrappers must find ways to responsibly conserve cash. Unfortunately, this frugality is often to the detriment of building key elements of legal infrastructure and can cost the company far more in the long run due to failure to effectively establish or protect the value of the business.

The challenge is to understand, prioritize, and budget for what is essential. Ideally, companies retain trusted counsel who understand their business and provide cogent, personalized guidance. Unfortunately, bootstrappers often fail to obtain the counsel they need, choosing instead to rely on general source materials (borrowed or copied, or “standardized form documents”) which can be applied out of context and thus fail to create the intended results. There are several common elements of legal infrastructure that should be considered. These legal “action items” are often triggered by fairly predictable stages in the company’s lifecycle. (more…)

The growth and proliferation of the internet as a widely accessible tool for communication, commerce, and information sharing has revolutionized the way we live life and do business.  Many historically traditional institutions have struggled to adjust to these fundamental changes.

One such institution bears the responsibility of protecting and defending people’s rights – our legal system.  Unfortunately, our current system of laws, based upon hundreds of years of experience in the world before instant global connectivity, fails to adequately answer all of the complex questions that have arisen as to how to enforce analog laws in a digital age.

The digital era has created a crisis in copyright law, especially.  Nowhere in popular culture is this crisis more acute than in the music and film industry. (more…)

Many entrepreneurs believe that entity formation is a “one size fits all” situation.  However, the type of entity you choose to form in the beginning can really impact your business.

You may want to go after angel or venture capital.  Perhaps you plan to bootstrap a small company and sell it off in a few years.  Maybe you hope to open a lifestyle business, and manage it yourself until you sell it or pass it on to your children.  You may intend to have one or more partners, or compensate valuable employees with equity.

Each business plan is unique, and “form” documentation simply cannot take into account all the nuances of your plan for the future. (more…)

With Congress stuck in gridlock, the Bush tax cuts about to expire, and Goblins and Witches about to make their reappearance with the coming of winter, it’s important for people to reconsider their estate plans now. (more…)

Focus on Immediate Survival- Save Long Term Planning for Later

Being an entrepreneur is complicated.  Enterprises often face having too few resources but an abundance of expenses.  Even so, when you choose to make trade-offs, don’t be pennywise but pound foolish.  Spend smart money on a few key legal documents to build essential infrastructure for your company.

By spending this money when you start your company, you can be protected from several critical issues that may seriously damage your business later- and it is far more expensive to have these issues fixed after the fact, than it is to properly address them in the beginning. (more…)