http://www.inc.com/jeff-haden/5-jobs-every-entrepreneur-should-have-before-starting-a-business.html?nav=next

It's that time of year when we reflect on our successes and how far we've come to reaching goals we've set.  Maybe we haven't come very far at all, and we resolve to change our behavior in order to get closer to those goals.  We'll make goals for everything from weight loss, love, financial stability, starting a new hobby to kicking a bad habit -- or maybe you'll resolve to quit your job and start a business like you always wanted to. 

The economy might have hit bottom.  Some experts claim there are sure signs of improvement and optimism.  This could be exactly the right time to start a business so that you will be established and positioned to grow just as our economy surges back to health! 

INC Magazine is a subsidiary of the Forbes magazine family, and they have tons of resources for entrepreneurs and would-be business owners.  The link above outlines a few skills every entrepreneur should have (or be prepared to learn) prior to taking the plunge. 

What are your resolutions for 2012?

http://www.hollywoodreporter.com/thr-esq/actress-forced-reveal-age-imdb-lawsuit-276298

Whether you hire the best legal counsel or represent yourself, most court documents become public record.  Ironically for the as-yet-unnamed actress in the above Hollywood Reporter link, that means she needs to admit her age in order to prove she is a victim of age discrimination.

Think for a moment about what kind of records you will need to prove that you are a victim of trade secret infringement.  That's right!  In order to demonstrate that the defendant stole your secrets, you will have to explain those very secrets to the court.  You can request that the documents or courtroom be sealed, but often reluctance to expose important documents leads parties to settle cases that might have been won in open court...  at a price.

Even in the heat of contentious litigation, it's important to never lose sight of the forest for all the trees in the way.  Much of the negative pop culture stereotypes about lawyers involve the desire to "win at all costs" or to drag a case to court despite how much it will cost the parties financially and emotionally.  Some lawyers may deserve this stereotype, which makes it all the more important to thoroughly interview potential counsel and resist the urge to get caught up in the "win" of your case.  Try to keep your eye on what's good for you and your business long-term. 

With business litigation, there is a very real threat that your competitors can extrapolate vital intel from even the things you refuse to say in open court.  And don't forget, when you are the one bringing a suit, the judge is probably not going to take your word for it:  the burden is on you to demonstrate that you've been wronged.

Civil lawsuits are an important dispute resolution tool in our society, and the open tradition of court records serves several purposes.  First, it makes a public record of who won a particular dispute so that the parties are clear on their obligations to each other after the decision.  Second, it shows other parties with similar circumstances what is likely to happen should they engage in litigation.  That's the "deterrent" effect of a lawsuit, where even if $0 actually changes hands because the losing party is bankrupt, the winner is truly the winner as a matter of law, and that influences the behavior of others.

UPDATE 01/13/2012:  The actress outed herself as Junie Hoang, 40, who plays younger characters in "B-list movies." 

Many inventors come up with great ideas -- new solutions to problems that make our lives easier and better.  Often, it's a point of pride to say you have a patent, even if you never make a profit from it.  It's very impressive when someone has multiple patents in their name because it means that person is very creative and probably very intelligent. 

Sometimes, however, getting a patent is just about the worst thing you can do for your commercial success.  This Financial Times article, http://www.ft.com/intl/cms/s/2/b156116a-2beb-11e1-98bc-00144feabdc0.html#axzz1hH92fig0, outlines the steps that SpaceX is taking to ensure its commercial space shuttle technology is safe.  While not every HLR client is developing eye-catching, high-value international technology, SpaceX's concerns are valid and worth factoring into your intellectual property strategy. 

Secrets are very hard to keep in this wired world, so if you decide to protect your ideas with trade secrets instead of patents, be prepared to increase the amount of technology you have to juggle.  A solution as simple as storing blue prints or specifications on a machine that is never connected to the internet might seem easy at first, but if you're ever going to license, manufacture, or sell your product, someone is going to need those specifications.  It's also important to have back-ups somewhere in case of a natural disaster.

There are several layers of protection available, like non-disclosure agreements with penalties for breach laid out very clearly.  There is a solution for every problem, and it behooves you to consider the amount of exposure you can afford before you get to market with the costs of obtaining and enforcing a legal judgment against the perpetrator after they have taken information that belongs to you. 

Yesterday's blog post was about going outside the box, expanding your sales pitch from the rational to the emotional to target the right kind of customers.  This might be an example of that strategy being taken too far:  http://www.fashion-law.org/2011/12/rolex-v-rolex-deli.html

When you're starting a business, it's natural to do one of two things:  say you are brand new,  novel, unheard-of, and one-of-a-kind;  or say you're just like something people already want, but cheaper. 

"Confusingly similar" is a legal term of art that has been used to quash things like restaurant decor, brand names, and even the smell of perfume.  Law suits are always based only on the facts presented in the case, so don't let this isolated example discourage you from naming your business.  However, take a step back if you're going after the Chanels and Jaguars of the world.  It's never a bad idea to try to describe why your product or service is outstanding, instead of using euphemisms like "it's the Rolex of delis!" or "it's the Lexus of computer hardware maintenance!" 

Challenge yourself to advertize smart.  And we can help -- trademark searches go much deeper than just a Googling the name you want to use.  Something called "trademark clearance" is a service many law firms (including HLR) provide to help you understand the landscape for that catchy name you dreamed up.  Likewise, think of us if you get a scary "cease & desist" letter from a major corporation.  The intellectual property resources at HLR are designed to help protect you and your ideas. 

http://www.inc.com/geoffrey-james/big-marketing-mistake-many-small-businesses-make.html?nav=rel

Whether it's widgets, lawnmowing, or legal services, small business owners need to inspire clients to buy their products and services.  You know by now that simply having a great product isn't enough -- you need to market it strategically, and when you have your audience's attention, you still need to close the deal and prove why you're better than cheaper alternatives. 

The above article gives an example of how you can shift the focus of your marketing from the rational (why your product is great, how it's the best choice to address X problem, etc) to the emotional. 

A great example of this is a family law attorney in the New Haven area, Marissa "Lady Divorce" Bigelli.  http://divorce.ladylegalgroup.com/  Now, everyone who is going through a divorce or custody battle is already emotional.  What I think this website does very well is frames Atty. Bigelli's practice as a ally and a calm, seasoned expert.  The white space and soft colors make it easy to read and clear.  The slogan on the top is designed to make you feel better.  Not everyone who is hiring a divorce attorney wants calm and assertive;  some people want a barracuda attorney who will scream and pound on the table in depositions.  But Attorney Bigelli wants clients who want her style of handling family disputes -- do you see how she made herself attractive specifically to the people she wants to work with?  This is an emotional sell.  I could certainly imagine a different attorney going in the opposite direction with bold colors and lots of exclamation points to make it clear to potential clients that they are the scream-and-pound type.

In contrast, the example in the article of a self-produced video borrowing (with appropriate licenses, I'm SURE, right, Geoffrey?) movie quotes and fading into company information holds back on the service provided until the end.  This might make sense for a captive audience like a trade show or directed traffic via an email link or ad space on a specific website, but it's risky for a television spot or broad-based ad.  How often do you recall thinking a tv spot was engaging or memorably bizarre, only to realize the sellers never actually told you what product they were promoting? 

It's a narrow path to walk between the rational and the emotional, for sure, but it will definitely close more deals for you because you will reach

http://ipwatchdog.com/2011/12/14/raising-funds-elements-of-a-successful-kickstarter-campaign/id=21296/

The above article is a thorough overview of how to present your business online for the purpose of generating interest from donors and investors. 

P2P?  Microlending?  Crowdsourcing?  VC?  It seems that there is a lot of money out there just waiting to be snatched up, right?  A primer: 

VC typically takes a substantial portion of the ownership rights to your company in exchange for a large infusion of capital after a thorough vetting process.  VC doesn't just drop out of the sky and invest because they like you (though your family might...), they want to see a track record, a workable plan, and probably some preliminary results for your product.

Microlending is trending strongly as well.  Kiva.org is an example of microlending to charitable effect:  in developing countries, as little as $25 USD can help a foreign entrepreneur start a business.  Kiva boasts a high repayment rate because part of the bargain is that the entrepreneurs must pay back the loan plus modest interest;  lenders typically donate the interest to Kiva's operating costs and take a tax deduction.  There are also services like this available domestically.  It's sometimes called peer-to-peer banking.  There is more than enough material on this subject for another blog post later.

Crowdsourcing is the opposite of Venture Capital ("VC") and angel investing.  It may appear more democratic:  many people from different walks of like can contribute small amounts in exchange for token goods or services, or contribute more for a significant product.  Often, they are gifts, not loans. 

Kickstarter.com and its ilk are arguably more charitable because the money is not paid back to the donors.  The entrepreneur presents a specific project and determines what certain levels of sponsorship earn a donor what good or service produced by the project.  One of my good friends is a jewler and metalworker (please say hello to Kest at www.vagabondjewelry.com or www.thebookofimaginarybeings.blogspot.com), and she pulled together a specific project to make wearable art based on each painting in a particular storybook.  The project was finite, had known costs, and a set end date (one year).  She offered different services for different levels of sponsors, such as hand-drawn greeting cards made to the donors specifications.  She raised more money than she asked for and was pleased with the results.

But is your business going to benefit from crowdsourcing?  As you pull together your promotional materials, consider the protections you have in place to safeguard your ideas.  The risk of going public to get funding can hurt your ability to patent your inventions later.  Not to mention the dangers of losing the first-to-market advantage if a larger competitor sees your idea and markets his own version before your funding even clears.  Take a deep breath:  nothing is free.  There are many avenues to get development capital and many ways to promote yourself and your assets practically, and Hawley Legal Resources, LLC, is happy to speak with you about all of them. 

http://online.wsj.com/article/SB10001424052970204026804577098492659395130.html?mod=WSJ_hpp_MIDDLE_Video_second  This Wall Street Journal Article, "Chasing the New Angel Investors," outlines some of the challenges ahead for small business owners looking to score some quick funding.  It's not enough to have an idea, or even a plan.  You need to have a working plan.  Perhaps you need a prototype, or a soft launch of your website or first store.  Demonstrate that you can bring customers to you, and the money will follow. 

Anytime you consider pitching your idea, however, think of Non-Disclosure Agreements or confidentiality agreements.  If all you have today is a good idea, that idea needs to be protected before you share it with the world! 

http://www.patentlyo.com/patent/2011/11/decreasing-patent-filings.html

It has never been "easy" to get a patent.  First, you must invent something and determine that it's novel, non-obvious, and useful.  Then, you must demonstrate those qualities in a written description that manages to both completely describe the invention and avoid touching on any existing patented material.  Next, you prosecute the patent with the various patent offices in countries where you plan to sell your product. 

That's the tricky part, really.  There are over 1 million patents backlogged at the USPTO.  They are in a hiring frenzy for new examiners, but there is still only so much even two thousand new examiners could do.  Patents and re-exams are filed by the hundreds every day, and each inventor wants the examiner to pay careful attention to their application.  It can take several years and thousands of dollars to get to the point where the USPTO says, "sorry, no patent will be issued."

It's a big risk for a small business!  But that doesn't mean it is a bad idea to try.  Going in with a full estimation of the time and expense will help you budget and prioritize which of your ideas need patent protection, and which ones can be protected by non-disclosure agreements or simply great customer service and marketing.