Today, I’m addressing the final three mistakes that can be devastating to your business: Poor insurance planning, sloppy record-keeping, and co-mingled finances. These issues have brought down countless successful companies. The entrepreneurs who suffered these failures weren't incompetent—they simply didn't realize how these seemingly minor oversights could create major vulnerabilities.

What makes these final three mistakes particularly dangerous is that they often don't cause immediate problems. You can operate for months or even years without proper insurance, disorganized records, or mixed finances before facing serious consequences. This creates a false sense of security that can lull business owners into complacency and inaction. When problems do arise from these oversights, they compound quickly and create cascading effects throughout your business.

The good news is that most legal disasters are entirely preventable when you know what to watch for and take proactive steps to protect your business. In this two-part series, I’ll break down seven of the most common legal mistakes that could destroy your business and provide you with practical strategies to avoid each one. Today, we're focusing on the first four critical mistakes that every business owner needs to know.

Mistake #1: Operating Without Proper Contracts 

One of the most dangerous assumptions business owners make is that verbal agreements and handshake deals are sufficient for conducting business. I get it. You're busy and don't want to slow things down by finding a lawyer to draft proper contracts. While a handshake may seem like a way to move quickly and feel more personal, it creates enormous legal vulnerabilities that could cost you everything.

But as the pace of AI adoption accelerates, so do the risks. If you're a business owner, you may be wondering: Should I be using AI? Can it really replace human input? What are the hidden dangers—and how do I stay ahead without losing what makes my business unique?

As a Personal Family Lawyer®, I work with business owners like you to help them not only keep up with change—but also lead with intention, clarity, and a human-centered strategy. Here’s what you need to know right now to use AI wisely, protect your business, and stay ahead without losing the very thing that makes your company great: you.

What AI Is Good At

 
Let’s start with the good news: AI can be incredibly useful when applied to the right tasks.

Intellectual property (IP) myths are costing businesses millions in lost revenue, legal battles, and missed opportunities. Let's explore five of the most damaging IP myths and uncover the truths that could save your business from costly mistakes.

Myth 1: "My Business is Too Small to Worry about IP Protection"

This might be the most costly myth in business today. Many entrepreneurs think IP protection is only for large corporations with deep pockets and teams of lawyers. The truth is exactly the opposite.

Small businesses often have the most to lose from IP theft because they have fewer resources to recover from it. When a competitor copies your innovative product or steals your brand identity, you don't have the luxury of absorbing those losses like a Fortune 500 company might. This includes everything from your local bakery's secret recipe to a freelance designer's logo creations to a consultant's proprietary methodology.

Whether due to past financial hardships, student loans, or simply a lack of credit history, a low credit score can make traditional financing seem out of reach. But that doesn’t mean your business dream is dead.

In fact, you can absolutely fund a business—even grow it quickly and intentionally—using other people’s money (OPM).

Let’s explore how entrepreneurs with low credit can access real startup capital, fund with confidence, and pay it back once the profits start rolling in.

A NEW APPROACH TO FUNDING

Traditional bank loans rely heavily on personal credit, often locking out brilliant, capable entrepreneurs who don’t fit a narrow financial mold. But smart funding is about resourcefulness, not perfection.

What if you could pitch your potential, prove your business model, and secure the capital to scale—all without your credit score being the deciding factor?

It’s possible. And it starts with knowing your options.