Avoid These Legal Mistakes or Pay the Price – A Small Business Guide
Running a small business is exciting, but legal mistakes can destroy everything you’ve built. Whether it's contracts, trademarks, or business agreements, failing to cover your legal bases can cost you time, money, and even your business.
I recently spoke with Elisa Hecker, an experienced attorney specializing in intellectual property, business, and entertainment law. She shared some of the most common legal pitfalls small business owners make—and how to avoid them.
If you own a business (or plan to), read this before it’s too late.
Mistake #1: Waiting Too Long to Hire a Lawyer
The biggest mistake small business owners make? They wait until they’re already in legal trouble to hire an attorney.
Why is this bad?
✅ By the time a contract is signed, your negotiation power is gone.
✅ You may have unknowingly agreed to unfair terms.
✅ Fixing a legal issue is way more expensive than preventing it.
💡 Solution: Hire a business lawyer early—even before launching. A good attorney helps set up contracts, protect your intellectual property, and prevent legal issues before they happen.
Mistake #2: Not Protecting Your Intellectual Property (IP)
Your brand name, logo, and content are your business’s most valuable assets. If you don’t legally protect them, someone else can steal them.
Real-life example:
A business owner tried to franchise their company but discovered another company had a similar name. Instead of giving up, they negotiated a coexistence agreement with the other company—securing the rights to continue using the name.
How to protect your business:
✅ Register trademarks for your business name, logo, and slogan.
✅ Copyright your content, designs, and creative work.
✅ Use contracts that clearly define who owns what.
Mistake #3: Signing Unfair Contracts
Bad contracts trap small business owners in unfair deals. Landlords, vendors, and business partners can slip hidden clauses into agreements that could cost you thousands.
Common contract mistakes:
❌ Non-compete clauses that limit your ability to work elsewhere.
❌ Unfair lease terms that make you responsible for the entire building’s HVAC costs.
❌ Service agreements that don’t protect your business in case of disputes.
💡 Solution: Always have an attorney review contracts before signing. Everything is negotiable, and a good lawyer will spot red flags before you commit.
Mistake #4: Ignoring Alternative Dispute Resolution (ADR)
Lawsuits are expensive and public—but many business disputes can be settled privately and affordably through mediation or arbitration.
Why ADR is better than court:
✅ It saves time and money.
✅ It keeps disputes confidential.
✅ Mediators can help resolve conflicts without burning bridges.
💡 Solution: Add mediation/arbitration clauses in all business agreements. This ensures that if a dispute arises, you won’t get dragged into an expensive lawsuit.
Mistake #5: Operating Like a Small Business Forever
Many business owners think they’re too small for legal protections. Wrong.
📌 Think like a BIG business from Day 1.
If you run a podcast, consulting firm, or creative business, treat it like a serious company:
✅ Use contracts for every deal.
✅ Get legal releases for guest appearances.
✅ Secure distribution and content rights before problems arise.
Example:
A podcaster landed a major distribution deal—but had no signed guest releases. This created legal roadblocks that could have been avoided by setting up agreements early.
Final Thoughts
If you’re a small business owner, legal mistakes can be costly. Protect your business by:
✔️ Hiring a lawyer before you need one.
✔️ Trademarking and copyrighting your business assets.
✔️ Reading contracts carefully (or having a lawyer review them).
✔️ Using mediation/arbitration to avoid lawsuits.
✔️ Thinking BIG even if your business is small.
📢 Have you made any legal mistakes in your business? Drop a comment and let’s talk!
🚀 Need help? Contact Elisa Hecker at heckeresq.com for expert legal advice.
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