In our very bustling autumn, September 12 was special. We were visited by Startup Sauna bright minds to have an amazing Startup Sauna Warmup in Riga. On the top of it � Monthly Meetup headlining two lawyers from Raidla Lejins & Norcous and a Startup Sauna coach.
There is something about those Startup Sauna�s mentors and their style. They are smart and experienced but also very straight. Let�s just say � if your presentation is rubbish, they will shout it out for sure. It is better for pitchers - that way they won�t make bigger mistakes like pursuing wrong markets and running in circles wondering what�s wrong. So they made their favorites MeWo, Latte and AsteriaEdu.
Luckily for us, there are some awesome lawyers that often help with advide in our office hours. And this time they were visiting us in meetup � Ingrida and Guntars from Raidla Lejins & Norcous. Most of startup people know that lawyers are an important part of business, but do they know why? Even more � some of us really ignore legal things. But the presenters made us understand perfectly why one shall never forget the �boring stuff� as Ingrida defined it herself.
Imagine you and your friend are starting a business. No contracts. Application or service, it doesn�t matter. It is all great until the moment when the money man comes. �The thing is that your friend might have a pretty different opinion about what is he doing and owning,� says Ingrida. In that way � when the money should be shared or responsibility comes, anything can happen. Therefore you should always have a contract to define who does what things and who owns what shares.
�Why do we like to help to startups? Of course it is not very profitable� But it if something interesting! Something new and challenging for us! Make sure you care about legal side in your business. If you are not sure, visit a lawyer! No normal lawyer will ever charge you for the first consultation.�
Anyway, if you figure out not to have any lawyer in your business, make sure to avoid three most common mistakes:
� Making no contracts � Having no procedures for managing information � Failing to understand the strategic importance of legal issues. �It is good to have good partners and it is amazing if you can create business with your friends. But it is crucial to draw borders to make sure you will always remain friends,� said Ingrida.
Quoting Pekka from Startup Sauna: �There is no right formula�. Of course. But by listening to advices and experiences from others, you can have better chances of making your startup successful and sustainable.