Startup Lawyer

Stay Ready in 2009

A wise man from Pomona once said “If you stay ready, you ain’t got to get ready.”

That’s the approach we should all take in 2009. Sure, venture-backed IPOs are rarer than brush-tailed rock-wallabies and capital is tighter than a 19th century corset. But that’s no excuse to be passive in 2009. If we aren’t ready, opportunity will pass us by.

Thus, one way I’m trying to stay ready in 2009 is by turning my law office into a “law lab” in order to increase productivity. I got rid of all the heavy furniture and replaced it with a contemporary/minimalist set from IKEA. (It was a no brainer since my desk was giving me ergonomic fits.) I also became more mobile by switching from a desktop to a laptop.

The following list are a few things entrepreneurs can do to “stay ready” in 2009:

1) If you are running a startup as a sole proprietorship or general partnership, incorporate your startup.

2) If your startup has incorporated, but has not executed various corporate agreements like bylaws, draft those now.

3) If you had a co-founder leave your startup, figure out the equity situation now. Don’t wait until it’s time to raise capital or sell. It will be too late.

4) If you recently left a startup and/or plan to launch a new startup, make sure you aren’t subject to any restrictive covenants.

5) If you are about to hire someone or team up with someone on a startup, make sure they aren’t subject to any restrictive covenants.

Here’s to a 2009 filled with opportunity for us all.

About the Author

Ryan Roberts is a startup lawyer and represents technology companies through all phases of the startup process, including incorporation, seed & venture financings, and exit transactions. Click here to learn more about his practice.

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