Most are aware of the financial risk of a business, You earn to sell £X to keep afloat then make a profit. That bit is easy. Everyone looks at the finacial risk of a business. Few look at the legal risk. The two are rarely the same.
Some businesses have a low turnover but are far greater legal risk than a large manufacturer of goods that coul dnot harm anyone. I find when this in pointed out to the owners of such businesses they are amazed.
To minimise risk every business owner should create defences to minimise the level of that risk to a business. Legal protection is one thing. The ability to enforce that legal right is a totally different matter. You may have a contract but do you have thousands of pounds to take legal action to enforce that contract.
Steps you need to take:
- Have robust and detailed contracts with everyone
- Have good terms and conditions for your business that cover every eventuality and are drafted for your specific business.
- Protect all your IP including your name and logo as Trademarks
- Understand the difference between the rights of a consumer in B2C contracts and of another business in B2B contracts. ensure your documents reflect this.
- Make sure you understand the laws relating to your particular business and that you comply with these.
In short make sure your business is as well set up and protected as possible and best established to stand up to any problems that may come along.
Secondly make sure you understand where the risks are in your business. You can then take essential steps to reduce these to the minimum. The risks will vary from business to business and relate to what you do rather than the size of the enterprize.
Make sure you understand these risks so you can put in place steps to prevent any problems.
Do not find yourself trying to sort out forseeable problems after the event.Be prepared. Do not find yourself lie averyone else- in a mess.
For more assistance contact http://www,barkleystartups.co.uk