Starting a Small Business
Making the decision to start a small business isn’t generally one that is taken lightly. There are many legal, financial and practical issues that all need to be given serious consideration first. When it comes to the legal side of things you need to be positive that you have conducted everything in the correct way. There are several common mistakes that new business owners make when putting their initial business structure together and this can cause problems further down the line.
The first thing to remember is that there are several different business structures. Registering yourself in the correct way will help you to be tax efficient now and in the future. Limited Companies have a tendency to be the favoured vehicle, but this isn’t always the most profitable option for many business types when it comes to taxes.
Similarly it is important that the equity structure of any small business is legally agreed upon from the beginning. It is important to document where the profits and dividends will be allocated and in what amounts. Should disagreements over the equity structure arise at a later date, it will prove essential that it was legally agreed upon before hand.
Intellectual property law is a concept you will need to have a strong understanding of before embarking upon a new business venture. Firstly this is important because you will need to protect your own ideas and those of the people working within your organisation. Secondly, you’ll need to ensure that you’re not accidentally infringing on somebody else’s intellectual property. Depending on the nature of your business, this could pertain to your trademark as well as any copyrights and patents.
Having your new business insured properly is not only a legal requirement bit will also prove essential if something were to go wrong. The world of business is an unpredictable and precarious one and there are no limits as to what you might have to pay out in the event of wrongdoing. In our existing modern-day compensation culture, even the smallest of infractions can lead to a big payout. There are three main types of insurance that you should be aware of.
Public Liability Insurance
You are likely to need public liability insurance if there’s a chance that visitors to your place of business could injure themselves on site. This kind of insurance also covers you if you cause damage to a customers property during a home visit.
Employers Liability Insurance
This is an absolute must by law if you employ workers. If one or more of your staff were to injure themselves on the job then you will be covered for a compensation claim. It is important to remember that if you don’t have employers liability insurance then you could be prosecuted.
Professional Liability Insurance
Professional liability insurance isn’t a legal requirement but can prove to be very useful. If your business is one that offers advice in a professional capacity then this type of cover will protect you in the event of a lawsuit brought about by perceived bad advice.
Once your new business is set up, insured and ready to get to work, you can then begin contemplating the best way to plan an effective marketing strategy, both offline and online. Don’t forget that the world of advertising has changed dramatically in the past few decades and it pays to be in the know!