Entrepreneurs often have questions about whether they require an operations agreement, a buy/sell agreement, or when to sell their business. Therefore, it’s vital to have a good attorney to assist them in navigating through their legal inquiries. In the latest episode of The Roadmap, host Ted Jenkins sits down with Travis Townsend, co-founder of Townsend Locket, to discuss how entrepreneurs can better manage their legal obligations.
After leaving a large law firm to become an entrepreneur, Townsend spent considerable time diversifying his skill set. Townsend Lockett strives to operate with a lean, efficient, and sophisticated approach. Their culture centers around achieving their client’s business objectives while covering all fundamental areas of business. This includes, but is not limited to, contract drafting and negotiations, intellectual property development, protection and enforcement, business litigation and dispute resolution, company finance, and regulatory compliance.
Key Takeaways:
1. Townsend Locket conducted prior research to discuss pricing options for personnel at different levels of the practice. They were confident that their skill set was valuable to patrons in big law and did not want to undervalue their services. After conducting market tests and analyzing their offerings, they went through a trial and error process to ultimately determine their pricing strategy.
2. Businesses must have a constitution, a set of rules that people can look at and know their business’s expectations. If you don’t get an operations agreement now, the repercussions will cost more in the future. Contract agreements are a way to decide how to break a tie between a 50/50 business decision.
3. It’s necessary for each party to have an employment agreement with the company outlining specific expectations for the work they will be doing. “When there are guidelines that let people know they can be let go, they behave,” asssert Townsend.
4. Some states and courts are becoming less lenient towards noncompete agreements for corporations, as many believe that restricting people’s ability to work goes against American values.
5. Trademarking is a crucial aspect for every business, regardless of its size. At Townsend and Locket, they have a unique approach to trademark recognition, which is based on an inherent understanding of how people perceive and recognize brands. When you offer a quality product or service, and your customers come to you for their needs, it becomes critical to safeguard your business investment by securing proper trademark protection.
"The clearer you are in writing, the smoother things go both in operations and separation." – Travis Townsend
