Nibletz Staff
As you probably know, it’s now easier than ever to start a business. The wide accessibility people have to the internet, and the various collaborative resources that come with it, means that all you really need to start trading is a device and an internet connection. This shift may sound great on the surface, but it’s really something of a double-edged sword. The sheer ease with which you can start a business has led to a lot of complacency in all the wrong areas. Here are a few legal blunders business owners need to avoid like the plague…
Choosing the Wrong Structure
If you don’t choose the best legal structure for your business, you may wind up becoming personally liable if the company makes a significant loss, or a claim is brought against you (although it’s possible to insure yourself against this). The right structure to adopt will depend heavily on the nature of the business you’re starting. Some of the most common are; sole trader, a partnership (which can be a limited liability), or a limited company (more legal responsibility, but you get more hedging between your finances and the company’s). Do your research into what each of these structures mean, and choose the one that’s right for you. You can start with this helpful Entrepreneur article.
Not Knowing your Industry’s Regulations
While there are certain universal laws that all businesses have to stick to, there are going to be regulations which are exclusive to the business niche you’re planning to tackle. Most businesses will need to hire in services like Analogue Electrics Ltd to make sure they’re keeping to legal safety standards, but this is just the tip of the iceberg. Cafés, for instance, exist in one of the tightest regulatory environments in the UK in terms of health and sanitation standards. Any company that has to dispose of hazardous waste will also be subject to extreme scrutiny, and businesses whose operations represent any kind of threat to the environment are under an increasing amount of pressure to follow the law to a tee. Ignorance is no defence for brushing over your industry’s regulations, so don’t let this mistake slip through the net.
Lack of Solid Contracts and Workplace Policies
Your entire workforce may be made up of close friends and associates, but that doesn’t mean you can get away with not having formal employment arrangements. Things may be fine now, but if you hit some rough waters at some point in the future, you could find yourself facing a massive claim. You need to have contracts in writing that include all the basic necessary details such as the rate of pay, holiday entitlement, obligatory working hours and necessary notice periods. You also need to make sure you have properly documented policies outlining the minimum statutory requirements, such as flexible working and maternity or adoption leave. You should also outline the company’s disciplinary and dismissal procedures in an employee handbook, and make sure this information is readily available to your staff.
