New Year – New Business ?
BUSINESS START UPS
You know starting up your own business could be quite a challenge but the idea of working for yourself is really exciting, so what do you do ? Fired up with enthusiasm, a lot of people just plunge straight in either on their own or with a couple of chums, just to see how it goes, without really thinking it through but, trust me, that’s not always the best idea. It’s often said that business and pleasure don’t mix so if you are going into business with a friend, it’s even more important to get the legal paperwork sorted out at the beginning to protect everyone involved if things get a little bit tricky along the way.
Certainly if you are getting external funding from someone like your local friendly Bank Manager, you will have to produce not only your business plan but also details of how you are actually going to run your business. Ask yourself whether you are going to be doing this on your own as a sole trader or in partnership with one or two others or even setting up a limited company. There are legal / tax pros and cons to all of these, so it’s a good time to deal with this right at the beginning, as part of your start up “to do list”. Your accountant will give you tax advice on all these angles and your solicitor will advise on which will be best for you in the early stages as well as also drawing up the various documents you will need.
The stats on new businesses survival are not very encouraging but we think that getting these basics right gives you the best chance of your business not just surviving, but thriving and making a decent profit for you.
We certainly advise our clients to draw up agreements to define who does what and who gets what. This is the best starting point for a new business. Shareholder’s Agreements and also Director’s Service Agreements are very important as a first point of reference if relationships start to get a little bit shaky further down the line.
You may need to deal with Landlords regarding Commercial Leases and without proper legal advice you might be signing up to something far beyond what you had intended. You may be employing staff and so you will need to deal with their contracts. You may decide to take on a franchise, which again needs careful consideration and good legal advice.
At Curwens, we are always happy to have an initial chat with you on the telephone so if you have any questions, just give me a ring on 0208 363 4444.