Everyone who has started a small business knows the challenges it comes with. It would be an understatement to say how important it is to start off your business right and prevent legal troubles down the road. Many entrepreneurs and startups refer to the Internet when they want to start a business.
Unfortunately, most of the time, the Internet doesn’t give all the answers you need. You may go in circles looking for information that seems within reach, but it is always unavailable. Eventually, you end up wasting a lot of time, and time is precious.
We have, for that reason, created a Business Guide for startups (it’s been 2 years in the making). Though aimed at startups, the Guide also contains useful information that would help anyone in business.
Here is a glimpse at what you can find in the Guide and how it will help you start your business off on the right foot.
The Guide for all startups – a quick overview
The guide includes the following topics:
- Formation
- Business Plans
- Legal Requirements and Compliance with Regulations
- Accounting and Tax – including IR35
- Funding
- Legal Documents – Requirements and what you can protect
- GDPR
- Insurance
- Banking
- Intellectual Property
- Software and Resources for Small Businesses
- Being an Employer for the first time
- Websites
- Social Media Marketing, Advertising, and Networking
- Mental Health
Startups – Choose a legal structure for your business
First, all startups need to determine what kind of entity their business is. The legal structure of the business affects everything from funding, banking, and taxes to business plans and your personal liability should something go wrong down the road.
What are the current needs of your business, and what will serve best for the future business goals? Here are a few more common types of legal business structures in the UK:
- Sole proprietorship. This is a business owned and run by an individual and is not a separate legal entity from the business owner. (freelance writer, a local grocery store, or an IT consultant).
- Partnership. Organisations where two or more people form a business. In a partnership, the parties involved share profits, losses and risks. (Microsoft started off as a partnership between Bill Gates and his friend Paul G. Allen in 1975. Today Microsoft is a corporation).
- Limited Company. A business entity that is formed by one person or a group of people, shareholders, companies or the like who work as a single organisation. (Apple Inc., Wallmart Inc., Google, Amazon, General Motors).
- Limited liability partnership (LLP). The most common business structure for small businesses which has the legal protections of a corporation but with the tax benefits of a partnership.
Learn what legal business structures are available and which one will serve your business the best. If you are struggling with the first step of starting a business, it’s best to get legal advice.
Write your business plan
All startups need a well-written business plan. This is not your everyday to-do list. A business plan is a formal written document that answers the following questions: What are the goals of your business? What are the methods for achieving those goals? What are your end goals? Who are you selling to? What is the time frame for achieving your business goals? Who are you?
A well-written business plan will guide you every time you feel stuck. Therefore, you must do it right. A business plan consultant is the right person to hire to help guide you through writing your business plan.
Legal documents
There are a bunch of key legal documents that you need for startup success:
- Articles of Association
- Contracts or Terms & Conditions
- A non-disclosure agreement (NDA)
- Shareholders’ Agreement
- Website Terms of Use
- Trademark Registration
- Privacy Policy
These essential documents are only a small fraction of your required documentation for a successful startup. So make sure you understand them before signing them. If you are unsure about which legal documentation you need when starting your business, it’s best to instruct a legal advisor.
Final thoughts
This is only a small part of the chapters the Guide contains.
We know that starting a small business can be overwhelming, and with a Guide to follow, you will know exactly what step to take at what time.
Our Business Guide Startup Mastery is aimed at businesses in the UK, and you can find it here. Please note that you will receive it in PDF format.
We are offering 15% off all our digital products on the website until 8th September 2022. So don’t miss out on the chance to purchase this Guide to Starting Out in Business and start off your business on the right foot.