New York is a great place to do business, however, those that do not follow my mother’s advice may end up lost in the forest or eaten by a shark. Listen to my mother and you shall be on your first step to a successful business in New York. If you are interested in buying a business in New York please see an article we wrote at: Buying a Business in New York and Buying or Selling a Business in New York? Do your Due Diligence.
My old, wise, and overprotective Italian mother once told me to:
- Look Both Ways Before Crossing the Street;
- Carry an Umbrella in the Spring; and
- Don’t Go Out Alone at Night.
This simple and clear advice can go a long way when doing business in New York.
Look Both Ways Before Crossing the Street
My mom would consistently drill in to me the need to look both ways before crossing the street. I was not an easy child. I, finally, listened when a car screeched to halt just short of hitting me. I believe I was around nine at the time. My mom was in a car waiting for me, amazingly, she never yelled – she just noted: Look Both Ways Before Crossing the Street. For an article on the basics of joint venture due diligence please see: NY Partnership/Joint Venture Due Diligence
The same advice can be said for doing business in New York. If you don’t want to be hit by a car, do your due diligence and look both ways. In most cases, it is advisable to hire a legal professional that works with businesses professional and consultants to assist you with the due diligence. A complete due diligence should not merely look at the business components of the deal or business, but should, also, look to the market, legal, tax, and the future regulatory landscape. In most cases, due diligence shall not take a great deal of time or money if you have good and honest advisors on your side.
Carry an Umbrella in the Spring
Secondly, everyone doing business in New York, in all cases, should have an umbrella. An umbrella is your protection from bad actors and in the business world umbrellas come in the form of contracts. It is essential for all businesses to have carefully drafted and nuanced contracts that consider the business realities and legal risks. It is essential not to, simply, pull up agreements from the internet and suspect that these agreements shall be adequate for your needs. A little money spent at this stage can save a lot of time, money and headaches down the road. Avoid court and concentrate on the need to have solid and enforceable agreements in place.
Don’t Go Out Alone at Night
Thirdly, if you do not have significant experience in doing business in New York, feel that you need more assistance (or a third ear) or you are new to the industry, get a consultant to assist. A good industry-specific consultant can help save you money, understand the landscape and, also, get you to execute on opportunities in a more efficient manner. Many of these consultants work with law firms.
Get a referral from your lawyer. If you don’t have a lawyer, get one and not just anyone. Get one that works on business projects and works with other business professionals. You need a great lawyer with a great sense of business realities present in New York.
This article is not intended to discourage investors. Do not avoid business in New York, just remember the advice of my mother. Look Both Ways Before Crossing the Street; Carry and Umbrella in the Spring; and Don’t Go Out Alone in the Dark. New York can be a profitable, enjoyable, and personally satisfying place to do business and you are long way to success with due diligence, good agreements and great advisors.
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