lifehack.guide

Legal Concepts ├── Contracts │ ├── Legally enforceable agreements between 2 or more parties │ │ ├── Offer │ │ ├── Acceptance │ │ ├── Consideration │ │ ├── Capacity │ │ └── Legal purpose ├── Torts │ ├── Wrongful acts causing injury subject to civic liability │ │ ├── Negligence │ │ │ ├── Duty │ │ │ ├── Breach │ │ │ ├── Causation │ │ │ ├── Injury │ │ │ └── Damages │ │ │ ├── Assumption of risk │ │ │ └── Comparative negligence │ │ ├── Intentional torts │ │ │ └── Intent to harm (assault, battery, false imprisonment, etc.) │ │ └── Strict liability │ │ └── Regardless of intent │ │ │ └── Employer Liability │ └── Employee torts within employment scope ├── Warranties │ ├── Guaranteeing goods standards │ │ ├── Express warranties │ │ └── Implied warranties │ │ ├── Merchantability │ │ └── Fitness for a particular purpose ├── Remedies for Breach of Contract │ ├── Damages │ │ ├── Compensatory │ │ ├── Consequential │ │ ├── Incidental │ │ ├── Nominal │ │ └── Punitive │ ├── Specific performance │ ├── Rescission │ └── Restitution ├── Commercial Transactions │ ├── UCC │ │ ├── Governs commercial transactions │ │ ├── Fills gaps │ │ └── Provides consistency │ └── CISG │ └── Governs international sales contracts between merchants ├── Sales Contracts │ └── Key terms │ ├── Representations │ ├── Conditions │ ├── Payment terms │ ├── Duration │ ├── Dispute resolution │ └── Risk allocation ├── Risk Management │ ├── Legal Risks │ │ ├── Torts │ │ ├── Crimes │ │ ├── Statutory regulations │ │ └── Contracts │ ├── Strategies │ │ ├── Acceptance │ │ ├── Transfer through insurance │ │ └── Mitigation ├── Compliance Management (reduce your exposure to risks) │ ├── Programs │ │ ├── Employee education │ │ ├── Employment scope definition │ │ └── Preparation for legal issues │ └── Competitive advantage ├── Insurance │ ├── Risk Transfer │ │ └── Premium payments │ ├── Separate Counsel │ │ └── Divergent interests (like when the insurer wants to gamble on a trial instead of settling within policy limits) │ └── Adequate Coverage │ ├── Property damage │ ├── Business interruption │ ├── Life insurance for owners │ └── Liability insurance for third-party injuries └── Business Form ├── LLC or Corporation └── Personal liability protection └── Attorney consultation for obligations and insurance

STANDARD NONDISCLOSURE AGREEMENT:

 

In connection with your communication with XYZ. (“Company”), the Company shall discuss with you (the individual named below) certain business, technical or other information, materials and/or ideas of the Company (“Proprietary Information”). In consideration of any disclosure, you agree as follows: 

1. You will hold in confidence and will not possess or use (except as required to evaluate your proposed employment with the Company) or disclose any Proprietary Information except information you can document 

(a) is in the public domain through no fault of yours, 

(b) was properly known to you, without restriction, prior to disclosure by Company or 

(c) was properly disclosed to you by another person without restriction. You will not reverse engineer or attempt to derive the composition or underlying information, structure or ideas of any Proprietary Information. The foregoing does not grant you a license in or to any of the Proprietary Information. 

2. You will promptly notify Company of any unauthorized release, disclosure or use of Proprietary Information. 

3. You understand that this Agreement does not obligate Company to disclose any information or negotiate or enter into any agreement or employment relationship. 

4. The terms of this Agreement will remain in effect with respect to any particular Proprietary Information until you can document that such Proprietary Information falls into one of the exceptions stated in Paragraph 1 above. 

5. You acknowledge and agree that due to the unique nature of the Proprietary Information, any breach of this agreement would cause irreparable harm to Company for which damages are not an adequate remedy, and that Company shall therefore be entitled to equitable relief (without being required to post a bond) in addition to all other remedies available at law. 

6. This Agreement is personal to you, is nonassignable by you, is governed by the internal laws of the State of ABC and may be modified or waived only in writing signed by both parties. If any provision of this Agreement is found to be unenforceable, such provision will be limited or deleted to the minimum extent necessary so that the remaining terms remain in full force and effect. The prevailing party in any dispute or legal action regarding the subject matter of this Agreement shall be entitled to recover attorneys’ fees and costs.

Acknowledged and agreed on: (Date)

Name: (Print) 

By: (Signature)

1. Angel investors: Individuals who back emerging entrepreneurial ventures with capital they are willing to risk. Angel investors serve as a bridge from self-funding to the point that a business can attract venture capital.
2. Business incubator: Provides space, coaching, and support services to entrepreneurs and early-stage businesses, often at a reduced cost.
3. Business plan: A document describing a proposed venture, covering current status, expected needs, and projected results for the enterprise. It contains thorough analysis of the product, market and competition, marketing strategy, operating plan, and management, as well as profit, balance sheet, and cash flow projections.
4. Corporation: A business form that is an entity legally separate from its owners and providing limited liability, easy transfer of ownership, and unlimited life.
5. E-commerce: The sale of products and services over the Internet.
6. Entrepreneur: A person who organizes, operates, and assumes the risk for a business venture.
7. Equity: An ownership interest in a business.
8. Intangible assets: Items of value that have no tangible physical properties, such as ideas.
9. Joint venture: A legal entity created by two or more businesses joining together to conduct a specific business enterprise with both parties sharing profits and losses.
10. Limited partnership: A business arrangement in which the day-to-day operations are controlled by one or more general partners and funded by limited or silent partners who are legally responsible for losses based on the amount of their investment.
11. Marketing: The process of researching, promoting, selling, and distributing a product or service. Marketing covers a broad range of practices, including advertising, publicity, pricing, and overall packaging of the goods or services.
12. Partnership: A legal form of business in which two or more persons are co-owners who share profits and losses.
13. Small Business Administration (SBA): An independent agency of the US federal government that aids, counsels, assists, and protects the interests of small businesses.
14. Small business technology development center (SBTDC): SBA program using university faculty and others to provide management assistance to current and prospective small business owners. Visit www.misbtdc.org for additional information.
15. Small business innovation research (SBIR): A federal program, run by the SBA, which awards federal research grants to small businesses for product commercialization.
16. Seed financing: A relatively small amount of money provided for proof of concept; it may involve product development or market research.
17. Sole proprietorship: A business form with one owner who is responsible for all of the firm's liabilities.
18. Start-up financing: Funding provided to companies for use in product development and initial marketing—usually funding for firms that have not yet sold their product commercially.
19. Venture capital (VC): A form of financing for a company in which the business gives up partial control in exchange for capital over a limited time frame—usually three to five years.
20. Venture investors: An institution specializing in the provision of large amounts of long-term capital to enterprises with a limited track record but with the expectation of substantial growth. Venture capitalists may also provide varying degrees of managerial and technical expertise.
21. Bottom Line: Net earnings and net income both fall under the “bottom line” description. You may hear people talk about “affecting the bottom line” of the company and this is simply any action that may increase or decrease the company’s net earnings, or overall profit. The term “bottom” is in reference to the typical location of the number on a company’s income statement, below both revenues (top line) and expenses. Needless to say, this is an important term to know. 
22. Gross Margin: Gross margin is expressed as a percentage and represents the percent of total sales revenue that a company keeps after subtracting the cost of producing its goods or services. The higher the percentage, the more the company keeps on each dollar of sales (that will eventually go toward paying its other costs and obligations). In simple terms, if a company’s gross margins are 25 percent, for every dollar of revenue that is generated, the company will retain $0.25 before paying its overhead, which includes salaries, rent, and more.
23. Fixed Costs: A fixed cost is exactly what is sounds like, a cost that does not change with increases or decreases in the volume of goods or services that are produced by your company. These costs are obviously the easiest to predict and plan for. Rent, salaries, and utilities all usually fall into this category. 
24. Variable Costs: They can vary depending on a what a company is producing (such as Amazon Web Services usage), and as a result are much harder to forecast.
25. Equity versus Debt: The “equity versus debt” comparison may seem silly to some, but you would be surprised at how many people I have come across who have no idea what either really means. Equity is simply money obtained from investors in exchange for ownership of a company, while debt comes in the form of loans from banks that must be repaid over time. Both are necessary for growth, with their own pros and cons. Equity versus debt is a critical decision for any entrepreneur and it is important to know the difference as the future of your business may depend on it.
26. Leverage: Leverage can be interpreted a couple different ways. In the financial world, leverage is most commonly known as the amount of debt that can be used to finance your business’ assets. In simple terms, the amount of money you borrowed to run your business. The balance you want to strike as an entrepreneur is that of your debt and equity. If you have way more debt than equity, you will be considered “highly leveraged” aka “very risky” to potential investors.
27. Capital Expenditures (CapEx): Capital expenditures are any items purchased by your business that create future benefits. Basically, if something you bought is going to be useful to your business beyond the taxable year in which you purchased it, capitalize the item(s) as assets in your accounting. Examples include computers, property, or acquisitions.
28. Concentration: Concentration is simply the measure (usually a percentage) of how much business you are doing with a specific client or partner. Relying on one or a couple of clients and partners to do business is a prime example of over-concentration. This is a losing strategy for any business because if something goes wrong with those limited relationships your business will be in serious trouble. Focus on keeping low concentrations for your accounts and investors will be impressed.
    
    Words & Phrases that Every Real Entrepreneur Should Remember: INFOGRAPHIC

1. Protect your idea from theft by filing for a copyright or patent. Consult an attorney who specializes in this type of law or apply on your own. 
2. Prepare a comprehensive presentation. Don't tell; show. Put together a dog and pony show that offers a visual tour of your idea using features and benefits (consumers will save time and money when they buy this product). Make your pitch unique and informative. Get help from a marketing pro if you're not comfortable creating this yourself. 
3. Set up a pitch appointment. Write a letter, send an e-mail or call Company's corporate headquarters. Make an appointment with a manager in the new product development department (your best bet) or someone on the research and development team . Tack a return receipt request to a mailed query. 
4. Follow your written communication with a phone call. Avoid giving specific details about your idea over the phone. Politely insist on an in-person meeting. Assure your contact that your presentation will be short and to the point. Suggest available dates for visiting the company. Calendar the date and send a confirming note.
5.  Prepare -- or have an attorney prepare for you -- a nondisclosure form. Companies with interests in proprietary designs are familiar with nondisclosures and understand an inventor's need limit their idea's exposure.
6. Rehearse your presentation to eliminate non-essential, irrelevant elements. Draft a list of questions your audience is likely to ask and be prepared to refute doubts and sell the merits of your idea. Ask friends to critique your pitch and throw questions your way to test your response reaction. 
7. Observe courtesy and professional protocols during your time on the campus. Arrive on time or a few minutes early. Introduce yourself before asking attendees to sign nondisclosure statements. Bring plenty of handouts. 
8. Be prepared to discuss licensing or sales options. Is your goal to sell your idea outright, giving up all claims to the product or do you want to license the idea and receive royalties based on sales? Corporate policies may preclude one or the other, but be ready for this topic if it comes up for discussion. 
9. Allow attendees an opportunity to "drive" your idea while you are in the room so you can answer questions. Conclude your meeting at the agreed upon time and thank everyone for meeting with you. It's OK to follow up with a phone call if you've heard nothing from your Company contact after a few weeks. 
10. Avoid scam artists offering to pitch your idea to a company for a fee. If you are considering an intermediary, investigate the company on the Internet or contact the Better Business Bureau before you take action.