What It Takes to Build a Business in a Legal Grey Area

Disruptive businesses make the headlines, but they also face real risks. Why you need to tread carefully around the law

Years ago, I worked as a waitress at a popular independent brew pub with an origin story that was the stuff of local legend. The proprietor had bought a heritage building, outfitted it with expensive brewing equipment and hired a full-time brewmaster to develop premium ales and lagers. He had just one problem: It wasn’t yet legal for an establishment in Ontario to produce and sell its own beer on-site. He started the business anyway, shilling sandwiches and sodas until the law changed and allowed the pub to sell the suds that have made it a prosperous business for nearly 30 years.

It’s a heartwarming yarn, because it took a lot of guts and there was a happy ending. It’s a small-scale example of the kind of entrepreneurial derring-do that...

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