It is still advisable to have your own counsel review the documents on your behalf. 364 Rich Dad's Guide to Investing Some specific areas where proper legal counsel can help you avoid potential problems in legal aspects of a business are: General Corporate: • Choice of business entity • Buy-sell agreements • Business licenses • Regulatory compliance • Office lease Or purchase contracts Consumer Laws: • Terms and conditions of sales • Direct mail • Product liability laws • Truth in advertising laws • Environmental laws Contracts: • With suppliers • With wholesale customers ' • With employees • Uniform commercial code • Warranties • Jurisdiction Intellectual Property: • Work-for-hire agreements • Nondisclosure agreements • Copyrights • Mask works • Patents • Trademarks • Licensing of intellectual property Labor Laws: ' • Human Resource issues • Employee agreements Legal Management • Employee disputes • OSHA • Workers' compensation Securities and Debt Instruments: • Equipment leasing or purchase • Loan documents • Private placements • IPOs Shareholder Issues: • Corporate bylaws • Board authority • Stock issuance • Mergers and acquisitions • Spin-offs Chapter 36 Product Management The company's product, which the customer ultimately buys from the business, is the last important aspect of the B-I Triangle. It could be a tangible item such as a hamburger or an intangible item such as consulting services. It is interesting to note that when evaluating a business, many average investors focus on the product rather than the rest of the business. Rich dad thought that the product was the least important piece to inspect when evaluating a business. Many people come to me with ideas for new innovative products. My response is that the world is full of great prod- ucts. People also say to me that their new idea or product is better than an existing product. Thinking that a better prod- Product Management 367 uct or better service is most important is usually the domain of the E and S quadrant, where being the best or highest qual- ity is important for success. In the В and I quadrants, however, the most important part of a new business is the system be- hind the product or idea, or the rest of the B-I Triangle. I then point out that most of us can cook a better hamburger than McDonald's but few of us can build a better business system than McDonald's. Rich Dad's Guidance In 1974,1 decided I was going to learn to build a business following the model of the B-I Triangle. Rich dad warned me by saying, "Learning to build a business according to this model is high risk. Many people attempt it, and few accom- plish it. However, although there is high risk at the start, if you learn how to build businesses, your earning potential is un- limited. For the people who are not willing to take the risk, those who don't wish to undertake such a steep learning curve, their risk may be lower but so will their lifetime returns.