Throughout the month of November, we published articles from our series, “How to Lose Your Small Business in 10 Days.” Brothers Mario and Luigi’s small business was doomed from the start and only worsened over time. Indeed, they lost their Plumbing & Pizza Delivery in 10 days. Could they have done things differently to avoid the problems which resulted in them losing their business? Simply stated, YES.
Among other things, Mario and Luigi could have consulted with an attorney before they started their business. In fact, given their lack of clarity on what business and who would own what percentage of it, their attorney could have drafted a Founders’ Agreement which would serve to clear up any ambiguous issues. Thereafter, Mario and Luigi’s attorney could have properly formed Plumbing & Pizza Delivery and filed articles of incorporation with the State, eliminating personal liability for each brother.
Moreover, an attorney could have assisted or educated Mario and Luigi regarding the “do’s and don’ts” of interviews, hiring, paying, and terminating employees. The attorney could have also prepared enforceable non-competition agreements and protected their intellectual property so Mario & Luigi could eliminate threats of employees or competitors from unfairly competing with their business. While an attorney may not be needed for every decision, hiring an attorney may be the best decision a small business can make.
Miss an article? Be sure to see the entire series below: