Common Legal Mistakes Startups Make – and How to Avoid Them

Bringing a new product or service to market is one of the most exciting parts of running a business. But while it’s easy to focus on branding, pricing and launch plans, many SMEs forget to consider the legal essentials — and that can leave you exposed to serious risks.

Whether you’re launching a physical product, digital tool, course, subscription, or consultancy offer, there are key legal checks you should always make before you go public.

In this post, we’ll guide you through what to cover — and how Your Legal Team can help you get launch-ready with confidence.

1. Do You Own What You’re Selling?

Let’s start with ownership. You need to be sure that:

• You have the rights to sell the product (especially if it was designed, developed, or manufactured by someone else).

• Any intellectual property (IP) — logos, content, code, packaging — is yours, or properly licensed.

• There are no hidden copyright or trademark risks — for example, using images, fonts or phrases you don’t have permission for.

⚠️ If you worked with freelancers or agencies to create your product or brand, make sure your contracts give you full IP rights. Otherwise, they may still own the work.

2. Is Your Brand Legally Protected?

Have you trademarked your product name, logo or slogan?

Before you invest in marketing, web domains or packaging, it’s worth running a trademark search to check:

              •            Whether your chosen name or logo is already in use.

              •            If it’s too similar to another brand (even in a different country or industry).

              •            If you can register it to prevent others copying or imitating you.

Registering your trademark gives you powerful legal protection — and increases the value of your business over time.

3. Have You Met Regulatory Requirements?

Depending on what you’re launching, there may be sector-specific regulations to comply with, such as:

              •            Labelling rules, for food, cosmetics, alcohol, and others

              •            Safety standards, for example for toys and electrical products

              •            Licensing, for taxi, coach and haulage firms, the security industry, financial services, medical products, online learning, and many others

              •            Advertising rules - it’s important not to make false claims

              •            Environmental or packaging regulations

              •            Accessibility standards, for example for digital services

Failing to meet these can lead to fines, takedown notices, bans, or even criminal liability — so it pays to be thorough.

4. Have You Covered Your Legal Bases Online?

If your product or service is sold or delivered online, make sure your website or app includes:

              •            Terms of use – governing how users interact with your platform or service.

              •            Privacy policy – explaining how you collect, store and use personal data (required under UK GDPR).

              •            Cookie policy and consent tool – for compliance with PECR and GDPR rules.

              •            E-commerce terms – if you’re taking payment online, consumers have extra legal rights.

These don’t just keep you compliant — they also build trust with customers.

5. Are Your Customer Terms Clear and Fair?

Whether your business is based on business to business trade, or business to consumer, you need clear terms and conditions of sale that cover:

              •            What the customer is buying

              •            Payment terms and refund policies

              •            Delivery timelines and responsibilities

              •            Warranties and disclaimers

              •            Limitation of liability

              •            How disputes will be handled

For consumer products, you also need to include cancellation rights, cooling-off periods, and compliance with the Consumer Rights Act 2015.

Poorly drafted T&Cs can lead to confusion, complaints — or even having to give refunds you didn’t anticipate.

6. Are You Ready to Handle Data Lawfully?

If your new service involves:

              •            Signing up users or collecting emails

              •            Taking online payments

              •            Tracking website activity

              •            Running marketing campaigns

…you’re almost certainly processing personal data.

That means you need to comply with the UK GDPR, including:

              •            Having a lawful basis for data collection

              •            Storing it securely

              •            Allowing access, correction or deletion when requested

              •            Not using it for anything users didn’t agree to

If you’re using third-party platforms like email services, cloud storage, or analytics, make sure data processing agreements are in place.

7. Have You Considered Your Liability and Risk?

Launching something new is a risk — and the law expects you to take reasonable steps to protect users and customers.

Ask yourself:

              •            Could this product or service cause harm if misused?

              •            Have you warned users of any risks or limitations?

              •            Have you taken reasonable precautions like safety checks, and including disclaimers?

              •            Do you have the right insurance cover in place?

These steps reduce your chances of being held liable, and the financial risk if you are — and may also be required by law or your insurer.

Our Launch-Ready Legal Checklist

Before launch day, your business should have:

✅ Trademark search and registration, if needed

✅ Clear intellectual property ownership

✅ Supplier and freelancer agreements

✅ Regulatory compliance checks

✅ Customer terms and website policies

✅ Data protection compliance

✅ Risk and liability protections

✅ Insurance in place

Need Help?

At Your Legal Team, we work with SMEs to get their launches right — and legally safe. Whether you’re starting from scratch, or fine-tuning before launch, we can:

              •            Review and draft contracts and website policies

              •            Check regulatory compliance

              •            Help register trademarks

              •            Advise on liability and customer rights

              •            Provide ongoing support post-launch

Your big idea deserves to be protected. Let us help you make it a success — the right way.