As an entrepreneur, there are many aspects that will require a lot of hard work and commitment when starting a new business venture and it can often feel like spinning plates.
One plate which you must absolutely not neglect is the legal side of your operation as you will need to make sure that you are operating within the law from the start. Compliance will mean that everything is onboard and provide the platform for you to go and succeed. Many entrepreneurs make the mistake of not looking in depth at the legal side which could come back to haunt them. Here are a few tips:
It is easy when you are first starting out to have work carried out without any kind of formal agreement in place. While this can work, it is also a huge risk as you will find that you have no legal recourse if somebody refuses to pay for your services. An ironclad contract for any kind of work is essential to make sure that you have these drawn up from the start.
Find Specialist Lawyers
It may be cheaper to find a lawyer who covers a wide spectrum of areas, but a lack of expertise could cost you in the long run. Instead, find lawyers who specialise in the area that you require, such as patenting, for success and peace of mind.
Stay Afloat On New Regulations
Regulations are constantly changing, so it is important to be aware of what the latest changes in your industry are. For example, the Falsified Medicines Directive (FMD) was passed by the EU Parliament in 2017 and came into effect in February 2019 – this directive requires added safety features on medicine packaging. Therefore, all pharmacies now need an FMD 2D Barcode Scanner to be FMD compliant.
Create An Entity
Separating business and personal assets is intelligent for a number of different reasons. Specifically, it is important because it means that your personal assets could not be lost if your business were being sued (and vice versa). To separate your personal and business lives, you will want to establish the brand as an entity – a Limited Liability Company (LLC) or incorporating.
If you plan on having employees, then it is essential that you have clear documentation in place which outlines every aspect of the role. It is unfortunate, but sometimes it will not work out with an employee, and you need to have protection in the form of a contract. Additionally, if you use freelance workers as opposed to hiring staff then make sure that you are protected in the form of a contract. Moreover, be careful not to misclassify anyone you work with as this could create legal trouble down the line.
The legal side of starting a new business may not be glamorous, but it is of the utmost importance. You need to make sure that you are operating legally from the start and also that you have protection in place in case anything were to go wrong. No entrepreneur believes that they will find themselves in legal trouble, but issues can occur, and you need to know how to protect yourself and your company.
Disclaimer: The information which is summarised herein and anywhere on this website does not constitute financial, legal or other professional advice and is general in nature.