2024 is here…and so are the barrage of self promises to improve yourself. In your “do better, be better” new year’s resolution planning, don’t forget to also consider your professional self. What will 2024 mean for you, professionally? You may be comfortable in your corporate ladder climb…and we wish you well. But it’s quite possible that you’re hearing the entrepreneur career path call your name. Canada is welcoming to entrepreneurship. In fact, statistics demonstrate that Canadian entrepreneurs are a growing segment and that small-medium businesses positively contribute to the Canadian economy. Will you be a part of this movement? If yes, strategic planning is going to be a strong indicator of success. Utilizing the law as a business tool to mitigate risks, structure deals, monetize intellectual property and so on should be a core component of your strategic planning. The law is not intuitive. You may not know what legal issues are relevant to your business. But this doesn’t stop them from impacting your business or exposing you to liability and/or risk. Here’s a run down of what you may want to consider in accelerating your business in 2024:
1. Is 2024 the year you are finally ready to make the leap to launch your business?
Do you have a passion or hobby that you’re ready to fully commercialize? Is your side hustle growing to the point that you’re ready for it to become your main hustle? Ensure that you’re operating the business under the right business entity. There are a few options: sole proprietor, incorporation, joint venture or partnership. There are advantages and disadvantages associated with each type of business entity. Make sure that you pick the right type of business entity for your venture. Enter into non-disclosure agreements to make sure that your concepts are protected when you’re making your pitches to third parties. Conduct appropriate due diligence and invest in your intellectual property before you bring your concept to market. If you’re working with consultants to build out aspects of your business, make sure that you enter into independent contractor agreements. It’s never too early to invest in legal protection.
2. Does your side hustle have traction? Is 2024 finally the year you’re going to dot your legal “i’s” and cross those “t’s” and make it official?
Some of you may be along your entrepreneurial journey and are well entrenched (or well in the trenches – depending on your perspective) in your business. You’ve tested out your side hustle and you know that there’s legitimate traction. Now may be the time to focus on the legal issues. You may be operating as a sole proprietor and are ready to incorporate. You may be ready to properly codify all of your third party business relationships through written agreements. This extends to clients and service providers all along your supply and distribution chain. You invest in your business to protect your competitive advantage and invest in your intellectual property and properly structure all of your business relationships through written agreements,
3. Is 2024 the year you will grow your team?
There is something to the adage: “you’ve got to spend money to make money”. There comes a point when you realize, you can’t do it all. You can’t be the creator, the marketer, the book-keeper, the sales engine and the overall do’er. If you dilute your efforts, guess what? Your returns are diluted. At some point, you need to build a team. There are lot of options as to how to grow the team: a business partner, an investor, an employee, a freelancer, a sales agent, a licensing partner, etc. When you inevitably do grow your team, understand the implications and make sure that your legal arrangements are properly set up.
4. Is 2024 the year you will make a big marketing push?
Is now the time for you to really expand your brand’s reach outside of its current customer base? How will you activate this? Through sponsorship? Hiring a brand ambassador? Creating an influencer marketing campaign? Hosting a series of retail pop up activations? Pushing your digital marketing campaigns? With each marketing push comes a different set of legal concerns: compliance with Canada’s Anti-Spam Legislation, negotiating contracts, compliance with the Competition Act, abiding by social media platform rules, avoiding intellectual property infringement claims, staying onside of influencer marketing campaign laws. The greater the brand exposure, the greater the exposure to risk. Mitigate those risks by planning ahead and avoiding legal minefields.
5. Is 2024 the year you will fully take your business online?
Now more than ever, it is clear that businesses will not survive if they are not online. If you are collecting personal data from your customers or users, you will need to navigate privacy laws. The type of agreements required will vary depending on how you are using the online space. If you are building your own marketplace or software app, this requires careful consideration. Compliance with international laws become a more poignant concern.
6. Is 2024 the year your packaging and labelling will strategically connect with consumers?
A truly successful brand appeals to the emotions of its consumer base and creates a value proposition that the consumer buys into. Strategic packaging and labelling for your business’ products and services can be beneficial in creating that emotional connection with your brand. Examples of such claims include Made in Canada or Product of Canada claims. In addition, the contents of your products can be also be an impetus for consumption (i.e. gluten free, vegan, nut free etc.). Such claims are governed by specific legislation and it is important to ensure that your packaging and labelling claims are compliant with the law.
7. Is 2024 the year you will expand beyond Canada?
We love Canada. Truly. But with a population of only 39 million or so, you can reach your full potential somewhat quickly. Compare that with our neighbor south of the border, who has a population of about 333 million, and there’s a lot more opportunity for growth. In today’s Shopify-powered world, global domination is that much more accessible. Be cognizant that as you expand internationally, your business will have to comply with the laws of that target country. If you are manufacturing internationally or sourcing materials internationally, ensure that your rights are protected in those countries.
8. Is 2024 the year you will fully embrace corporate social responsibility?
Corporate social responsibility (“CSR”) is a significant motivator for consumer purchasing behaviors and it’s unlikely to change. Will your business fully embrace CSR? Have you created corporate policies that bring into account human rights and environmental concerns? Will you bind your third parties to abide by these policies when they’re working for you? Will you become B Corp Certified? Do your manufacturing agreements bring into account sustainability, human rights and environmental issues? Do you have an internal supplier diversity procurement system? If not, you may want to factor these in.
9. Is 2024 the year you will source out third party financing?
Running a business, no matter how lean, is costly. How long can you bootstrap finance your own venture? At some point, third party financing becomes inevitable. There are many ways in which you can secure this financing: loans, equity financing or government grants. Each come with its own complications.
Starting a business venture is an exciting endeavor. It can also be overwhelming. Knowledge is power and hopefully this article gives you a small idea of what types of legal issues you should be considering on your entrepreneurial journey.