2. Don’t Slack on Equity Management
Equity management means maintaining your cap table, issuing stock options and managing stock option vesting. It also includes equity issuance and transfers, and running scenarios. It’s not necessarily the fun or pretty part of the business, but it has to be done. Because of it’s overwhelming nature, many businesses default to hiring a law firm to manage these tasks, or end up having way too many spreadsheets in an attempt to manage it themselves.
The good news is that these tasks can be managed by software for a fraction of the price. I would recommend hiring an outsourced GC, who can make sure this data is implemented correctly. Keep it up to date for you when you need it and out of your hair when you don’t. Many GCs include equity management in their regular toolbox and can assist with implementing equity management software. Speaking of which, I really like using Carta to manage equity and cap tables, because they offer a really smart, intuitive online platform.
It’s inevitable that you’re going to experience employee terminations. It happens to all businesses…By taking the right legal precautions initially, you can decrease your chances of legal repercussions before terminating anyone.
3. Keep Employee Management on the Up-and-Up
As your business grows, so will your employee numbers, including employee agreements, independent contractor policies, HR and classification of employees versus contractors. These are just some of the areas that need to be tackled correctly in order to protect your business.
It’s inevitable that you’re going to experience employee terminations. It happens to all businesses. You may have hired someone you believed to be more qualified than they really are; or aren’t a good fit for your company culture. By taking the right legal precautions initially, you can decrease your chances of legal repercussions before terminating anyone. This can be done by clearly spelling out the terms of employment within any and all employee manuals, policies and offer letters. Also consider documenting any disciplinary actions involving your employees.
Classifying your employees correctly is also a critical part of managing your team. According to the Federal Department of Labor, “the misclassification of employees as independent contractors presents one of the most serious problems facing affected workers, employers and the entire economy.”
If you’re not already working with a business attorney, bring in an outsourced GC to help manage your employees. Your GC can help manage employee contracts and agreements, hirings and firings, employee classifications, overtime policies and any potential disputes that may otherwise evolve into litigation.
My best advice is to bring in a trusted, affordable legal advisor, such as an outsourced GC. They can become an important part of your organization’s continued success and growth.
Your Business’s Legal Needs Don’t Have to Be a Hassle
While your business’s legal needs are a critical part of your daily operations, they don’t have to cause you undue stress or financial strain. Don’t open up your company to risk by letting legal matters slip through the cracks. My best advice is to bring in a trusted, affordable legal advisor, such as an outsourced GC. They can become an important part of your organization’s continued success and growth.
