Dear Colleague
I hope you have survived Snowmaggedon! I got to the office most days, but it was really a hassle for everyone. I am a skier so I don't mind snow, but this was really too much!
Assisting New Companies in Raising Investment Capital
I am pleased to announce that my client Mellow Beverage Company in California has completed its initial raise of $2M and is in the process of its product rollout. Mellow Beverage sells a new product in the "functional beverage" market area that is a healthy water that assists you in calming down and in going to sleep. It launched its product in Southern California in September 2009 and has had a phenomenal success.
One of the real joys of my law practice is helping new companies like this grow and become successful. I have helped a number of companies in different industries do this, and it generally involves the preparation of a Private Placement Memorandum which describes the deal and the risks of the deal.
If you or your colleagues are working with a new company that could use this expertise, please let me know.
Dealing with a Corporate Crisis.
When I worked for the U.S. House of Representatives some years ago, I was staff counsel for the same committee that is now conducting the Toyota hearings. As I watched the hearings and the reports of the hearings this week, it reminded me of how difficult it can be when your company has a crisis that is very public. While not many companies have a crisis as big as that of Toyota, even much smaller companies can face difficulties as a result of many factors.
Here are couple of suggestions if your company faces any difficult problem:
(1) Appoint a single corporate spokesperson and make sure that all communications are handled through that person--this will ensure that the correct story is getting out;
(2) Don't be defensive! If your company has made a mistake, say so immediately and pledge to do a better job. Many companies have had problems, some of them very public, but you can preserve your relationships with customers if you are truthful. Naturally, you should be consulting with your legal counsel to avoid any statements that might hurt you in later litigation, but the important thing is to be (and seem to be) honest in how you deal with customers;
(3) Don't make your problem worse by refusing to answer questions, even tough ones. All of these crises go away. Don't prolong it by refusing to deal with it or refusing to answer questions from the press or from customers. Your goal is to minimize the damage, and the time it takes for the crisis to become old new is critical.
I have helped a number of companies face this type of problem and I am glad to assist you in this.
I hope you have found this Newsletter helpful. I have gotten a lot of positive comments about my Newsletters in the last year since I have been doing them. Please feel free to pass them along to your family and colleagues, and let me know if you need any legal advice. Thanks.
