Use Your Counsel Wisely For New Ventures

A wise person recently told me "They're called counsel for a reason." Some companies let lawyers control their business risk unnecessarily, and it ends up crippling their innovation plans.

eCommerce law is constantly evolving. Particularly in traditionally regulated industries. In many cases, there are laws for what can be done and can't be done. In other cases, there is no clear law. What there is instead is business risk. Risk of a civil lawsuit by a litigious competitor protecting an older business model, or risk of a penalty in case the tax laws (for example) change or become clearer, and it's not in your favour.

If you're in a regulated industry (alcohol, medicine are two good examples) there are laws, and then there is risk. Involve your lawyers up front. Learn the hard and fast laws.

Then size the opportunity and build your execution plan based on staying within the white lines. Then bring in the lawyers again to judge the risks, but don't give them too much power in the planning process. Some leaders - particularly in new lines of business - can be overly cautious.

If you're an advocate for a new opportunity, ensure you treat your legal colleagues as partners - and establish enough of a relationship to understand the difference between law and risk.