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0:10 When you’re starting off, companies tend to get really messy because you may not take the time or energy or money to invest in proper legal counsel. A lot of people don’t think it’s necessary, they’re like oh I’ll fix it once we’re doing well and we’re making tons of money but at that point that’s usually what causes the legal issues, when you don’t have the proper documentation and then you start doing well.
0:30 If I were you, I would do whatever it takes to have the proper legal documents in place whether you’re raising venture capital or whether you’re just doing business with a friend. Now if you’re raising venture capital of course you’re gonna have the proper lawyers but if you’re just doing business with a friend, most people are like, oh they’re my friend, it’s just a handshake. I’ve seen so many friendships get ruined because of business. I even had issues with friends because of business and the one thing I wish I did better when I was younger is have proper legal documents.
1:00 Now I use this lawyer based in San Francisco named Joey Tran, he’s amazing and I’ve had my legal issues over the years and Joey has mentioned to me, he’s just like it was funny I remember the first time I had legal issues and this was years and years after I started my first company and he’s like, “Let me guess, these legal issues “are with your pretty much your first main business?” And I’m like yeah, how’d you know and he’s like “Yeah most entrepreneurs mess up “with their first few and then when they run into issues “then they start getting their act together.”
1:30 I wish I listened to him earlier, cause when we’re starting a lot of these companies we could’ve spent you know extra $1,000 and it would have gone much further along and I would’ve avoided most my legal issues. So, if you’re starting off and you’re not generating income and you believe in yourself, take the time to invest in a lawyer. Doesn’t have to be expensive one, doesn’t have to be the best one, and just get stuff done. Like Joey, who I use, he’s good, he’s not the most expensive lawyer, but he’s good, he does honest work, and he’s amazing.
2:00 So go find whatever lawyer you’re comfortable with higher ’em and get the proper legal documentation. I’ve dealt with everything from FTC investigations, class action lawsuits, I’ve done mediation with business partners, I’ve done it all. Now another thing too is, when you’re working with business partners, doesn’t matter how close of a friend they are, you’re always gonna have issues. Now I’ve been lucky, cause one of my business partners is my brother-in-law, right, when it’s family, funny enough a lot of people say you can have issues and don’t do business with family but I’ve had the least amount of issues with family cause we’re not too picky when it comes to money.
2:30 We always try to do what’s best for the other person so my partnerships when it’s come to family have been amazing. But in general you’re doing partnerships with friends or even family, you could run into issues and if you have the proper legal documentation I bet you, you won’t even have half the issues that you would will if you don’t have the proper lawyer.
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