There’s a lot of electricity when starting a UK business, and not just for people entering the electronics industry. Those first few months of setting up a new company are filled with excitement and adrenaline, as you try to come to terms with everything from funding, budgets, hiring, logo making, the list just goes on and on.
Some of the key things to think about when starting a business, however, are the legal considerations. This is one of those things that can easily get lost in that buzz of excitement. While you might prioritise company registration and various tax obligations, there are various legal considerations to take into account. We’re going to discuss three of them here, helping to make sure that you don’t fall into any potholes before you even exit the gate.
Advice for Business Structuring
The first thing to note is that, while you might be an expert in your chosen business venture, you’re not an expert in the legal field. Unless you’re a lawyer. Or an electrician. We hear they’re pretty savvy. But if you want to survive in the business world, it’s crucial that you research corporate solicitors and get as much help as possible for your business structuring.
This can include sole tradership structures, business partnerships, limited liability partnerships, or limited companies. Each structure will have different legal implications in the UK, but with a trusted and reputable corporate solicitor, you can evaluate your options and structure your business accordingly.
Pay Close Attention to Your Contracts
Every startup will need to draft and negotiate various agreements, including customer contracts, supplier agreements, and partnership agreements. Clear and concise contracts, then, are vital for protecting your interests and avoiding any disputes down the line. According to a recent study, over 50% of businesses in the UK do not know fair contract rules, or the law on terms and conditions.
If a dispute were to happen during the early months of your business – or even during the first few years – this can be immediately damaging from a reputation perspective and could lead to some substantial losses very early in your lifespan. Once again, this is where a corporate solicitor could be very handy, so make sure you get the necessary advice before beginning.
Attain the Best Data Protection Systems
In another report on contracts and agreements, it was discovered that 90% of organisations have difficulty locating contracts because they don’t have the necessary technology. Technology itself is going to be crucial over the next few years, especially when it comes to the loyalty of your consumers. Compliance with GDPR – General Data Protection Regulation – is critical to handling user data, implementing robot protection measures, and ensuring data security across the board.
If this isn’t followed to a tee, you’re risking a hefty fine and – even more concerningly – a loss in consumer trust. In a third study, it was found that 66% of consumers would not trust a company after a data breach, so make sure a good portion of your budget goes into updated technology, and regularly check you are compliant with all the necessary laws.
