Essential advice for Start-up Businesses
Are you a start-up business or established business that requires legal advice? If so, turn on the switches and read further.
In business, it’s all about the journey than the actual destination. Ten years down the line, you’re going to remember your first client as opposed to the big deals you closed in the sixth year of your operation.
Let’s face it, we see people walk every day, but how exciting is it to see a baby take its first step?
And abundance of consumers is one of the factors that drives business and feeds our economy. In the grander scheme of things, providing useful goods and services that the market falls short of, which implies that the consumer spends more, leaving your business with a ripple effect of endless benefits.
Hypothetically speaking, and say you embark on a business venture such as selling oranges. Your top priority is to make your business a success by virtue of smart business choices.
And while a business of this nature may sound simple to run, small business owners must spare a thought to the varying taxes, or whether or not they will operate as a sole proprietor.
Speaking of taxes, which opens a whole new can of worms – we’re talking Pay As You Earn (PAYE) factor, provisional tax and VAT policies.
On the flip side, most businesses consist of a staff which calls for a new ball game – did you register your staff for UIF? Does your employment contract project an accurate reflection of your business policies to your staff? In turn, does your staff understand the business policies?
All of the above questions calls for professional legal drafting by a legal expert who understands the nature of your business.
While I hate to be the bearer of bad news, the worst is yet to come when your business lacks effective legal support. Of course, your suppliers and customers may be as trustworthy as the moon. However, in business, nothing should be taken at face value.
Failure in having proper, legal drafted contracts and agreements in place, can pose a risk to your business. In any event, God forbid, should a consumer of customer pull a dirty on your business, your business could be deemed bankrupt – causing you to spend a great deal of time and money on litigation.
Yes, one can argue that even with a written contract or agreement in place, people can still swindle you. However, the likelihood of that unfolding will be minimised with a written contract and agreement.
On the contrary, what does protocol state for business partnerships and shareholding? If you are operating with others in partnership, is there a comprehensive partnership agreement in place? And if you and others are operating your business through a company, has the shares been correctly issued? Failure in addressing the latter issues could result in the demise of your business.
In essence, what all of this comes down to, is utilizing the most efficient business legal vehicle to avoid potential snags. That is, to comply with legislation and further, have the necessary legal contracts and agreements in place.
Last but not least, it is of utmost importance that the ownership, roles and responsivities are in sync with your business. Therefore, speak to your small business advisor to ensure that your oranges are in a basket without holes. Having said that, with all your ducks in a row, there’s no reason why your business shouldn’t flourish.
From my team and I, best of luck to all your business endeavours!