Being an entrepreneur, you have countless roles to play for business growth and success. You’ll be playing the role of a salesperson, manager, customer representative, developer, and project manager. However, you can hire people for all these positions or legal services, but keeping a check yourself is essential. More so, even if you have a small business, you can never free yourself from the liability of law.
Every business that is officially launched has to act in accordance with the law, regardless of business size. More so, if you are establishing a new business, you should be aware of legal issues that may come in your way. It is not essential to hire a lawyer initially, but one should obtain all the knowledge regarding business laws so that they can protect their businesses.
Here are five ways that can help you protect your small business from any legal fallout:
- Always prefer written agreements-
Every small business owner has to show trust towards its stakeholder and clients at the initial stage because you are new to the business world. Though, many owners are manipulated or abandoned later on, as no contract or written agreement was signed at the initial phase. Whenever you start working with another business, irrespective of whether they are clients, service providers, business partners or employees, signing a written contract is highly recommended that includes all the terms and conditions clearly. By doing so, you can settle all the future clashes as everything will be mentioned in the contracts.
- Keep your paperwork streamlined-
Once you are done with all the contracts and paperwork, the next big hassle is to file and assemble your papers vigilantly. It is highly vital for a business to have an automated system at place that keeps your contracts and agreements updated, whenever amendments are asked by the laws. Obsolete paperwork is useless for business as missing information creates misperception. For instance, your company has paid taxes, and you documented all the tax documents accurately previous year as well. Thus, it is essential that every time you pay taxes you have to update documents and records thoroughly.
- Do your research homework on the prevailing laws –
You may not be a lawyer by profession, but the more legal knowledge you have, the better. Having maximum knowledge can help you protect your business from legal mistakes. That doesn’t mean you should hire a permanent lawyer as in the initial phase it may cost you too much. Try to enhance your legal knowledge according to your business industry by researching websites such as US Small Business Administration and more.
Here is some necessary information that every small business should know:
- Intellectual Property- It is the core of most online companies. And it is rightly said, this is where most attorneys make maximum money especially when it’s a small business. You know there’s a fragile line between originality and larceny. Therefore, intellectual property owners need to put in efforts to ensure rights are secured as it is the only way to protect the trademark IP address
- Financial- If you are focused mainly on your business, vendors or customers, you should be aware of the fundamental laws involved.
- Laws related to employees and labor- The hiring process is quite tricky for small businesses as they foul of the laws because they are usually unaware of it. Additionally, employment and labor laws help to shelter work practices and embrace the correct technique for terminating any employee.
- Marketing and Advertisement- Misleading information or false advertising can result in legal action; thus, it is essential to know the law. Understand the set protocols for marketing and advertisement to stay confident with your ads.
- Seek legal advice when you need it-
Don’t keep predicting. If you don’t understand specific terms and conditions in any contract, seeking the help of lawyers immediately before signing the documents is an ideal way. A lawyer can interpret all the terms and conditions and make you understand thoroughly everything, which helps in better decision making. You may find this process a bit costly, so opt for business legal services. These legal service providers have a team for contract review and management enabling you to make a right move that too at affordable costs.
- Don’t forget to register your Intellectual Property-
In case, your small business is retail, and you have an e-commerce web existence don’t forget to register your IP. The online business has far reaching effects and you need to protect all your business identities such as design, logos, and ideas, which is possible through registration of intellectual property. What if some other business copies your content, and trademark for which you invested so much, worked hard? Therefore, never take your IP lightly.
So you have it all- just five simple ways that will hopefully help you from entering the lengthy and expensive legal conflicts.