4. Bind between investor and startup

It is a simple yet a vital rule to follow, but no deal should be made without a lucid agreement and with both the parties having a clear knowledge about the minute details of the deal. Trivial misunderstandings can very well lead to disastrous results and the best way to avoid such a situation is to keep a record of everything that is going on. Entrepreneurs usually neglect having written documents and bond papers for every business deal that their company enters and the whole situation can turn around badly on them. Not having hard copies or written documents can create complex misunderstandings between the parties.It is highly recommended to have manuscripts and written transcripts of every meeting that concerns the company and can create potential legal issues.An entrepreneur must always be careful about all the financial and legal aspects of the company and must be aware of the critical dos and don’ts of business from the point of view of the judiciary.