Comments on: How to Make Sure Your Startup Company Will Fail http://startuplawyer.com/startup-issues/how-to-make-sure-your-startup-company-will-fail Startup Law, Incorporation, Convertible Notes, Preferred Stock, Stock Options, Venture Capital Wed, 16 May 2012 14:19:26 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Richard Aubin http://startuplawyer.com/startup-issues/how-to-make-sure-your-startup-company-will-fail#comment-52 Richard Aubin Sat, 22 Sep 2007 10:44:51 +0000 http://www.thestartuplawyer.com/startup-issues/how-to-make-sure-your-startup-company-will-fail#comment-52 I was with you until the last one. Although I generally, agree with the substance of the suggestion, the header is completely wrong. In right-to-work states such as Texas, the employer's at-will-employment rights (you can fire anyone for any reason or no reason at all) should not (without really good reason) be abandoned by entering into specific employment contracts with your employees. That said, you can accomplish the same goal by preparing a policy manual or employee handbook that sets forth things such as your vacation policy, work hours, etc. without creating an "employment contract" (but you'll probably want a lawyer to draft/review it to make sure you don't cross the line into an employment contract). Open communications about work policies (or the lack of them) go a long way towards maintaining a sense of fairness, which is critical in employee retention. The underlying message to the whole post is also a good one - don't be cheap when you are building a new company, you'll pay for it later. Establish relationships with professionals (lawyers, accountants, bankers, office suppliers and other vendors) who can help you get off the ground in such a way that you avoid problems down the road. I was with you until the last one. Although I generally, agree with the substance of the suggestion, the header is completely wrong. In right-to-work states such as Texas, the employer's at-will-employment rights (you can fire anyone for any reason or no reason at all) should not (without really good reason) be abandoned by entering into specific employment contracts with your employees.

That said, you can accomplish the same goal by preparing a policy manual or employee handbook that sets forth things such as your vacation policy, work hours, etc. without creating an "employment contract" (but you'll probably want a lawyer to draft/review it to make sure you don't cross the line into an employment contract).

Open communications about work policies (or the lack of them) go a long way towards maintaining a sense of fairness, which is critical in employee retention.

The underlying message to the whole post is also a good one – don't be cheap when you are building a new company, you'll pay for it later. Establish relationships with professionals (lawyers, accountants, bankers, office suppliers and other vendors) who can help you get off the ground in such a way that you avoid problems down the road.

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