People get so fixated on their ideas that they forget or ignore the business model.

But we’re always surprised when that entrepreneur or small business owner has a tough time describing the potential customers for their new business’s products and services.

After all, without customers, there is no revenue. And without revenue, there is no business.

Most of the time, this happens because the person didn’t conduct market research and didn’t take the time to write a business plan.

If you try to sell your products and services to everyone in the world, you will waste both time and money.

In this video, I outline five main factors you should consider when choosing a market for your startup or small business:

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A strong brand identity is one of the most important tools that can help you to be more competitive.

Crucial brand elements like your business name, company logo, and business tagline should be protected so that no other company can enter the market and use your identity to sell their product or service. One of the earliest steps you can take to protect your business’s intellectual property is to register your trademark.

In the following guide, learn the basics of trademark law and 5 tips for leveraging trademarks in your business.

What is a Trademark?

Trademark law prevents businesses from operating under business names – or using logos – that are likely to be mistaken for the name of an existing competitor.

For a more complete definition, here’s how the U.S. Patent and Trademark Office defines a trademark:

any word, name, symbol, or device, or any combination, used, or intended to be used, in commerce to identify and distinguish the goods of one manufacturer or seller from goods manufactured or sold by others, and to indicate the source of the goods. In short, a trademark is a brand name.

A service mark is similar to a trademark – but it’s used to distinguish the services of one provider from services provided by others (and to indicate the source of the services).

Imagine if dozens of businesses operated under the same name or logo. How could people tell them apart?

What’s the difference between copyright and trademark law?

Copyright and trademark law both protect intellectual property – but they protect different things.

Copyright protects works such as poetry, movies, writing, music, video games, videos, plays, paintings, sheet music, recorded music performances, novels, software code, sculptures, photographs, choreography, and architectural designs. Trademarks are names, logos, sounds, shapes, colors and even smells that distinguish the source of goods or services of one party from those of another party.

Example: A computer software program may be copyrighted. The name of the software can be trademarked.

If a trade name or logo is protected by copyright law, is it automatically protected by trademark law?

No. A trade name or logo design might be protected by copyright law, but is not protected by trademark law unless it is actually used in commerce.

This is because trademark rights arise only through commerce (such as when you offer items for sale and use the trade name or logo in your marketing materials or on the products).

So, it’s not enough to get a logo design and keep it secret. You must use that design by offering products or services for sale under that brand.

Must a trade name or logo be registered with the U.S. Patent and Trademark Office to be protected by trademark law?

No. You are not required to register a trade name (or logo). You can acquire common law rights simply by using the trade name or logo in commerce.

Do you have to be a U.S. citizen to register a trademark?

No. But you must disclose your citizenship in the application.

How Long Does a U.S. Trademark Last?

U.S. Trademark registrations filed today have a 10-year term. NOTE: There are periodic requirements to maintain an active registration and you must follow those requirements or risk losing your trademark registration.

Can you sell or assign a trademark to another person?

Yes. If your mark is registered, you can (but don’t have to) record the transfer with the U.S. Patent and Trademark Office.

Is a U.S. trademark or use solely in the U.S. sufficient to acquire trademark rights around the world?

No. Trademark rights are territorial.

If you’ve registered your trademark in the U.S., you can generally enforce it only against those who infringe it in the U.S. Many European countries have adopted the Community Trademark (CTM) – a registration under that common system allows the enforcement of rights in all of the signatory countries. The CTM doesn’t replace national trademark rights in the signatory countries, but it does coexist with those rights.

If you own a U.S. trademark or have applied for one, you can seek registration in any of the countries that have joined the Madrid Protocol by filing a single application – called an “international application” – with the International Bureau of the World Intellectual Property Organization.

What Should Small Businesses Do To Avoid Violating or to Leverage Trademark Law?

Here are five practical tips about trademark law and your trade name or logo:

1. Do a trademark search before you settle on a trade name (company name) and/or logo.

You can search (for free) the federal trademark database – Trademark Electronic Search System.

You can also leverage Google, Bing and other search engines to look for companies using the name you intend to use for your company or product. Don’t forget to do a domain name search to see if someone is using the name as their domain.

It’s always a good idea to hire a trademark search service – even if you think you’re a good researcher. Professional search costs several hundred dollars (and can cost thousands of dollars depending on their coverage), but covers many more databases than you’ll have access to, will often include an international search, and will typically be much more thorough.

Although more expensive than many others, this is the company I often used when working with clients on trademark matters.

Intellectual property lawsuits can be very expensive. Take care to make sure that you’re not exposing yourself to unnecessary risk.

2. Register your trademark.

You are not required to register a trade name (or your logo). You can acquire common law rights simply by using the trade name or logo in commerce.

However, registering the trade name or logo is useful. Among other things, it notifies others that you assert rights over the trade name or logo and that you’re serious about protecting your rights. The registration date also contains the date you first used the mark – which serves as evidence against other parties you might later allege violate your trademark rights.

Moreover, when you’ve registered your trademark, you can sue those who infringe your mark to recover damages and also attorneys’ fees and punitive damages.

You can hire a firm or attorney to help you register, or do it yourself. The forms for registering with the U.S. Patent and Trademark Office can be found here.

If you need answers to specific trademark questions about U.S. registration, you can also contact the Trademark Assistance Center at 1-800-786-9199.

3. Maintain your trademark if you’ve registered it.

If you’ve registered your trademark, continue using it in commerce. You can use the “®” symbol once your registration is approved – this lets everyone know that your trade name or logo is registered. If you haven’t registered, you can use the “tm” trademark symbol to let people know that you assert trademark rights in the trade name or logo but that it’s not officially registered.

4. You can file a trademark application before you use a mark in commerce.

This is especially helpful to startups – you don’t need to wait to use a trademark in commerce – you can file an Intent-to-Use application with the U.S. Patent and Trademark Office.

5. Understand the Permitted and Prohibited Uses When You Use Another Company’s trade name or logo.

Often, especially when companies enter into partnership agreements with each other, the partners must use someone else’s trade name or trademark.

For example, if I have a small electronics store and advertise Sony products for sale, I may use the Sony logo in the advertising I place in the local paper. Make sure you have the rights to use the trade name or trademark. Don’t assume that you have unlimited rights – you most likely do not (even if you’re authorized to resell a particular company’s products or services).

This problem commonly arises when stores advertise products or services for sale. Some companies have dealership arrangements and allow only authorized dealers or stores to sell their products or services.

Similarly, if you allow other parties to use your trade name or logo, make sure you carefully define how they should use the trade name or logo – and also specify any uses that are not permitted. Make sure you do this in writing so that there’s no ambiguity about permitted and prohibited uses.

If you get into a jam or are unsure about what to do – consult an attorney.

Please remember that legal information is not the same as legal advice. This post may not address all relevant business or legal issues that are unique to your situation and you should always seek legal advice from a licensed attorney.

The post What You Need to Know About Trademarks appeared first on crowdspring Small Business Resource Center.

Some fear they’ll end up paying exorbitant legal fees or that they’ll receive bad advice that will destroy their business (if you’ve watched the show Arrested Development and have seen Barry Zuckerkorn in action, you’ll know exactly what I mean).

Others agonize over how to find a reasonably priced, competent lawyer.

Much of the fear and worry is unfounded but I’ve seen too many business owners suffer at the hands of incompetent and expensive legal counsel.

Entrepreneurs hate lawyers. But your experience can be different.

Lawyers can help you navigate complex legal issues and avoid risk. They’re helpful in many situations, but especially when you start your business and need to figure out your business structure, licenses, and permits, get federal and state tax IDs, etc. Good lawyers can also help you write sections of your business plan.

Here are my seven tips on how your small business or startup can hire a good lawyer without losing your shirt (for 13 years prior to crowdspring, I practiced law. During that time, I counseled and represented clients (from small businesses to internet startups to Fortune 100 companies) in transactional matters and in complex trials all over the United States. I’ve set at the table as a lawyer, and now have the perspective of an entrepreneur and small business owner).

1. How to hire lawyers that add value.

I’ve met and have sat across the table from many lawyers who are deal-killers.

Overzealous and often inexperienced, they focus on the wrong issues and forget that their client needs the deal to move forward.

When you talk with lawyers you’re considering hiring, ask them about one or two complicated negotiations, and how they were able to overcome obstacles.

Tip: Don’t make price your main criteria for hiring a lawyer. Often, the least expensive lawyers are also less experienced – especially in the areas where you may need help. Paying a cheaper hourly rate might feel good initially, but at the end, you may end up paying far more than if you hired an experienced (more expensive) lawyer in the first place.

Also – be clear about your budget and expectations. Your lawyer should understand that your budget is limited and that they should not waste that budget on irrelevant details.

2. How to hire lawyers that are responsive to your needs.

Your lawyer won’t be very helpful if they’re not responsive when you need them. Because many deals and transactions are time-sensitive, be sure that your lawyer will be there for you when you need them.

Tip: Before you start working with a lawyer, communicate with them using different channels. For example, call them, email them, fax them, etc. Are they responsive across all communication channels? Are they uncomfortable working electronically via email? How quickly do they return your phone calls when you leave a voice mail? Can you reach them in the evening? What happens when they go on vacation and you need their help?

Also, talk to current and former clients specifically about communication and whether they felt they were kept fully informed about the progress on their matters and whether they ever had problems reaching the lawyer when they needed her help.

3. How to manage legal costs.

Most business owners are frustrated when they finally start receiving bills from their legal counsel. Often, the bills include unexpected costs – something you thought would cost $250 ends up costing you $2,500. That’s quite a difference to a small business or a young startup.

Tip: Ask for fixed fees, especially if you’re asking your lawyer to draft specific documents. For example, if you need a standard employment agreement, ask the lawyer for a fixed fee to draft and negotiate the agreement, so that you don’t have to worry about how much you’ll end up paying for that agreement.

Also, be clear about the scope of work you need from your lawyer. If you need a simple employment agreement or option plan, explain exactly what you need and be clear about the business terms that must be included in that agreement.

Finally, don’t ask your lawyers to do things you can easily do yourself. If you need to fill out some forms – fill out the forms and send the completed forms to your lawyer to review and file. Or use a service like Quickly Legal, designed to help businesses with smart legal contracts.

4. How to hire the right lawyer.

If you’re a small business or startup, hire a local lawyer or firm that typically works with small businesses and startups.

Bigger, more experienced firms might seem attractive options, but if they’re not used to working with small clients, you’ll run into many issues (communication, high billing, responsiveness, etc.).

Talk to some current and former clients that are small businesses and startups and be sure those clients are happy and comfortable working with the lawyer you’re considering hiring.

Tip: You’ll generally find more added value when working with local lawyers, as opposed to lawyers located across the country. A local lawyer will have local connections that will help you with funding, can make introductions to other businesses that can help you and will invite you to local events where you can meet their other clients and network.

5. When to hire a lawyer.

Typically, the best time to start a relationship with a lawyer is before you start your company. This is especially important if you plan to be a venture or angel investor-backed company (because the type of entity you create will impact many other things).

Too many people make the mistake of forming a company and reaching agreement among co-founders without consulting a lawyer. In some cases, some co-founders leave (retaining their interest) and the rest are left to try to make the business work. A good lawyer will help you structure the business – and ownership interests – in ways that will protect everyone and give you flexibility going forward.

Tip: Make sure your lawyer knows what issues are important to you and what issues are less important (or not important). You can also help by negotiating the business terms yourself – without involving your lawyer – and then ask your lawyer to put together an agreement that reflects the deal you negotiated.

6. How to avoid having inexperienced, young lawyers doing all the work.

Many mid-size and larger law-firms have associates do the bulk of the work for clients. This can be a problem because younger associates might be inexperienced and it might take them substantially more time than it would take an experienced lawyer to solve a particular problem for you.

Tip: Clarify in advance whether the lawyer you’re hiring or someone else in their firm will be working on your matter. Worry less about the lawyer’s hourly fee and more about their experience. Experienced lawyers charge higher hourly fees (when I left my legal practice, I was billing $500 per hour!) but can solve your problems much more quickly and for less money – than less experienced lawyers.

 7. How to hire a lawyer you understand.

Many lawyers speak and write in legalese. This is a problem because it leads to more confusion, higher legal costs, and more difficulty in negotiating deals and agreements.

Tip: Before hiring your lawyer, ask them for a few sample letters and/or agreements they’ve written. Are these documents easy to understand and well-written? Are they filled with complex and hard to understand legalese?

For example, to help software developers negotiate contracts with clients, I wrote an e-book called Contracts for Software Developers Who Hate Contracts. If you download a free copy of the e-book, you’ll find that the sample contract in the e-book is written in easy to read, plain English.

The post Hire A Good Lawyer Without Losing Your Shirt appeared first on crowdspring Small Business Resource Center.

Time and time again, experts in entrepreneurship and business (often with little to no operating experience of their own) offer formulaic advice on what startups must do to succeed.

The truth is that there is no one way to “correctly” start a company.

Startups are the epitome of unpredictability and extremes.

For every example of a successful company that proves a myth wrong, there will always be one that will prove it right, especially in today’s world of rapidly expanding technology and connectivity.

That is why it is imperative for entrepreneurs to critically examine all advice and “truths” about startups. With countless articles and opinions, it can be hard to decipher who’s right.

Fortunately, many startup myths revolve around three common topics (business plans, money, and unnatural hustle).

Many aspiring and even experienced entrepreneurs blindly believe those myths to be true and either take too long to start their business or never feel confident enough to get going.

So, in the words of Adam Savage of Mythbusters fame, “let’s blow some stuff up.”

Myth #1: You need a complete, elaborate, and detailed business plan from day one.

While simple business plans or outlines may help guide startups towards investors or a general plan of action, detailed business plans often rob startups of precious time.

Entrepreneurs fall into the trap of spending months crafting plans that may not actually fit the market by the time they begin building their company. William Bygrave, an entrepreneurship professor at Babson College, cautioned in an article for The Wall Street Journal:

What we really don’t want to do is literally spend a year or more essentially writing a business plan without knowing we have actual customers. Entrepreneurs must be nimble, and will be more apt to stick with a flawed concept they spent months drafting.

Successful entrepreneurs move quickly.

Unsuccessful entrepreneurs often fall into a dangerous trap: sticking to a plan that is destined to fail.

Bygrave’s ideas echo a 1984 study by George Washington University. In that study, researchers discovered that the most successful entrepreneurs practiced something called “entrepreneurial adaptation”, a set of skills that allow entrepreneurs to adapt easily and quickly to new environments and situations.

The researchers found that in return, this ability caused entrepreneurs to disrupt common patterns in daily life, attracted more customers and created more revenue, causing a cycle of nuanced disruption and adaptation. According to the study, entrepreneurs adapted to new situations quickly because they allowed themselves to be flexible with their business ideas.

Not one successful entrepreneur bound themselves to a static, detailed plan; they knew that no matter how hard they worked on the plan, they couldn’t possibly account for every possibility.

If you think it’s important to put together a short business plan, Guy Kawasaki, the former chief evangelist of Apple and successful entrepreneur, offers good tips in his post on the Zen of Business Plans.

Myth #2: You need a lot of money to start.

Businesses do require some capital, but this doesn’t mean that every startup has to raise millions of dollars in seed money.

Many startups begin from a single entrepreneur or a small team that either invest their own time and money until they can begin to generate revenue, or reach small fundraising goals through friends, family, crowdfunding, incubators, or bootstrapping.

Google is a great example of a successful company started with little capital. When Larry and Sergey first began BackRub (which would eventually become Google), they didn’t run to a venture capital firm or angel investor. They didn’t have the ability to crowdfund or go to an incubator either, so they did the only thing they could do in 1996: work out of their garages. It was only in 1998 when Andy Bechtolsheim invested $100,000 in Google, Inc. They had proven themselves before they received an investment.

Myth #3: You must be all about your business, 24/7.

Henry David Thoreau famously said:

It is not enough to be busy. So are the ants. The question is: What are we busy about?

Unfortunately, many entrepreneurs confuse being busy with hustling.

As Ramon Ray, a successful entrepreneur, author, and journalist points out,

[a]ll entrepreneurs hustle, but successful entrepreneurs smart hustle.

With everyone from professors to investors on Shark Tank repeating the notion that an entrepreneur must be completely focused on their business each hour of every day, entrepreneurs often find themselves drowning in their business – exhausted and overworked.

The reality is that no person can work extremely long hours over a long period of time while focusing solely on one thing.

Doing so results in boredom, sleeplessness, and general irritability that can be detrimental to decision making and productivity.

These behaviors easily translate into one dreaded yet popular trend among entrepreneurs: burnout. Elizabeth Isele, co-founder of Washington think tank Senior Entrepreneurship Works says:

Part of small-business burnout is related to the whole search for meaning. I see people who think that because they are following their passion they’ll get everything they want from their business. But work alone cannot possibly deliver on all your expectations in life.

We must lead a well-rounded life in order to become successful.

For those fearing that any time away from a startup could decrease productivity, just think of it as a time to recharge and get inspired by other aspects of life.

After all, you never know where your next great idea may come from.

The post 3 Common Myths About Starting A Business appeared first on crowdspring Small Business Resource Center.

During this journey, I had numerous opportunities to counsel startups and small businesses. A typical conversation thread often centered around the legal hurdles confronting these entities and the best ways to avoid them.

Here are the top 10 legal mistakes often made by startups and small businesses and crucial tips on how to avoid making those mistakes:

1. Neglecting to form a business entity

It’s not uncommon for small businesses, especially startups, to conduct operations without first establishing a business entity. This can lead to the owner’s personal assets being at risk in case of a lawsuit or debt.

Why this is a problem: The business world can be unpredictable. You expose your assets to potential lawsuits or debts without forming a business entity. For example, if your company can’t pay a supplier, the supplier could potentially go after your personal assets to settle the debt.

How to avoid this problem: Seek legal advice on forming a business entity. This may be an LLC (Limited Liability Company), a corporation, or a partnership. These entities can protect your personal assets by separating them from the company’s assets.

2. Not creating a shareholders’ agreement

When multiple individuals form a company, they often overlook creating a shareholders’ agreement. A shareholders’ agreement outlines what happens if a shareholder wants to leave, dies, or wants to sell their shares.

Why this is a problem: Disagreements regarding dividing shares without a shareholders’ agreement can arise. This can disrupt the smooth operation of your business, leading to conflicts and, potentially, court disputes.

How to avoid this problem: Have a lawyer draft a comprehensive shareholders’ agreement. It should clearly outline the terms of share division, procedures for transferring shares, and steps to resolve shareholder disagreements.

3. Inadequate employment agreements

A casual, informal approach to employment agreements can lead to significant problems later. Clear employment agreements are crucial, regardless of the size of your business.

Why this is a problem: If an employment agreement is not detailed enough, misunderstandings may arise about job expectations, compensation, and termination terms. For instance, without an explicit agreement, an employee may claim ownership of a project they worked on for your company.

How to avoid this problem: Consult a lawyer to help draft thorough employment agreements. These should include terms on job roles, salary, dispute resolution, and ownership of work.

4. Neglecting privacy policies and terms of service

Businesses operating online often overlook the importance of a comprehensive privacy policy and terms of service.

Why this is a problem: Failing to disclose how you handle customer data or not having clear terms of service can lead to lawsuits, fines, or even a website shutdown

. For instance, you could be liable if a customer’s data is breached and you didn’t disclose your data handling practices.

How to avoid this problem: Consult with a lawyer to draft a comprehensive privacy policy and terms of service. This will ensure that you comply with all relevant laws and regulations.

5. Misclassifying employees as independent contractors

To cut costs, many businesses misclassify their employees as independent contractors. While this may seem like a money-saving move, it can backfire legally.

Why this is a problem: Misclassifying employees as independent contractors can lead to fines and penalties. If, for example, an employee classified as an independent contractor gets injured on the job, you could be liable for their medical expenses and other costs.

How to avoid this problem: Understand the legal differences between an employee and an independent contractor. Consult a lawyer if unsure, and classify your workforce accordingly to avoid legal complications.

6. Ignoring local and international regulations

Businesses, especially those operating online, often fail to consider the legal implications of serving customers in different localities, states, or countries.

Why this is a problem: Every locality, state, or country has its business regulations. Non-compliance, even if accidental, can result in legal issues, fines, or potential business closure. Imagine halting your operations because you overlooked a local sales tax regulation.

How to avoid this problem: Get familiar with the regulations of every locality, state, or country you operate in. Engage legal experts knowledgeable with international and local business laws to ensure compliance, , especially with evolving legislation such as the Digital Markets Act.

7. Neglecting to protect intellectual property

Many small businesses believe they have no intellectual property (IP) risk. This belief is often mistaken and can lead to problems.

Why this is a problem: Failing to protect your intellectual property can lead to others taking advantage of your work. For example, if your employees invent new technologies for your business without an agreement, they might claim ownership of those inventions.

How to avoid this problem: Understand the basics of intellectual property law. Protect your IP by applying for patents, copyrights, or trademarks as necessary. Consult an IP attorney to ensure you’re not leaving your business vulnerable.

8. Overlooking the intellectual property rights of others

Even non-tech businesses can face significant intellectual property issues. This includes potential patent, trademark, and copyright disputes.

Why this is a problem: Infringing on others’ intellectual property rights, whether knowingly or unknowingly, can lead to lawsuits. For instance, using a logo similar to another company’s trademarked logo could land you in a legal dispute.

How to avoid this problem: Be aware of your industry’s existing patents, trademarks, and copyrights. Consider hiring an intellectual property attorney to thoroughly search and avoid potential infringements.

9. Getting tangled in costly litigation

Litigation can be costly and time-consuming. Often, the only winners are the attorneys involved.

Why this is a problem: A lengthy litigation process can distract you from running your business and drain your resources. Sometimes, the legal fees can be higher than the cost of settling the dispute out of court.

How to avoid this problem: Prevent litigation by seeking legal advice before making important decisions. Include mediation and/or binding arbitration provisions in your agreements as an alternative to litigation.

10. Trying to navigate legal waters without professional help

Many small businesses attempt to cut corners by avoiding legal consultation. Some use online resources as a substitute for professional legal advice.

Why this is a problem: Legal missteps can cost your business significantly more than hiring a competent attorney. Whether it’s a poorly drafted contract or an overlooked regulation, the price of a legal error can be steep.

How to avoid this problem: Hire an attorney with expertise in your business area. Though the upfront costs might be high, an attorney can prevent costly legal issues, saving your business money in the long run.

Remember, each business situation is unique and requires careful consideration. Experienced attorneys can save you time, aggravation, and money by providing the right advice at the right time – don’t compromise your business by failing to get legal advice when necessary.

And incidentally, if you wondered whether I could “speak” like a lawyer, I can:

Disclaimer: This article is meant to provide information, not legal advice. Always consult with a licensed attorney for legal matters related to your business.

The post Avoid Business Collapse: Top 10 Legal Mistakes and How to Prevent Them appeared first on crowdspring Small Business Resource Center.