"Compliance is a revenue driver, because you're going to attract more customers that want your business when your shop looks pristine." – Shawn Cheadle

You’ve got a great product. You’re chasing contracts. Maybe you're eyeing VC funding or dreaming of an IPO. But if you ignore legal and compliance early on, those dreams could blow up at the worst possible moment.

In this episode, Katherine sits down with Taft Law experts John Gordon and Shawn Cheadle to break down the most common legal and compliance mistakes startups make—and how to fix (or better yet, prevent) them.

From cyber hygiene to IP protection, from bad hiring choices to missing contract clauses, they share what founders need to know now to stay fundable, acquirable, and legally bulletproof.

Whether you're commercial now and going after your first government contract—or already deep in federal work—this episode is your playbook for building it right the first time.

💡 What You’ll Learn in This Episode:

· Why compliance isn’t just a cost—it’s a growth enabler

· The #1 thing that kills deals in due diligence (and how to avoid it)

· How poor record-keeping can derail your entire valuation

· Why your IP isn’t protected unless your paperwork says so

· The danger of offshoring admin work without ITAR safeguards

· Why founders should never sign contracts they don’t fully understand

· The “Dirty Dozen” legal foundations for scaling in the defense sector

· Real-life horror stories from the front lines of acquisition gone wrong

🛠️ Startup Checklist: Don’t Scale Without It

· ✅ Register with sam.gov and Exostar

· ✅ Create IP assignment agreements—even for early team members

· ✅ Track ownership and equity meticulously from day one

· ✅ Build a strong Code of Conduct and employment policies

· ✅ Understand cyber risks—even if you’re a team of five

· ✅ Get legal eyes on contracts before you sign (especially around indemnity & export control)

· ✅ Avoid offshoring sensitive work that could violate ITAR or data regulations

🔗 Connect with John Gordon & Shawn Cheadle:

· https://www.taftlaw.com/people/l-shawn-cheadle/

· https://www.taftlaw.com/people/john-t-gordon/LinkedIn – John Gordon

· LinkedIn – Shawn Cheadle

🔗 Connect with Host Katherine Jerald:

· Elraysearch.com

· LinkedIn – Katherine Jerald

This podcast is proudly produced in partnership with podlad.com