Top tips for new businesses – Part II

Monday 13 April 2015

In part 1 of my blog, I set out our top tips for establishing a new business vehicle and structure. It is equally, if not more, important to ensure that you have the appropriate contracts and registrations in place when you business is ready to start trading.

Here are our top tips for safeguarding your new business:

Protect your assets

Intellectual Property
Registering your business’ name, logos, products, designs, and inventions are particularly important if your business is reliant on them. Remember, if you engage a third party to create anything for your business, ensure that the contract states that you will own, or at least have an irrevocable legal right to use, the intellectual property right in anything they create.

Employees
If you have key employees, ensure that you formally document their terms of employment, and restrict them from competing with your business should they leave their employment with you.

Confidential Information
If your business is reliant on its ‘know-how’ or confidential information, ensure that robust non-disclosure agreements are in place if and when that information is to be released to a third party.

Put standard terms and conditions in place

Standard terms and conditions avoid the time and expense of drawing up specific terms for each individual transaction, and also remove the administrative burden that would be created by trading with bespoke terms and conditions. In the event that a customer or supplier fails to perform their obligations, standard terms and conditions will help ensure that your rights can be enforced.

Know your legal obligations

Employment
Employees have numerous statutory rights, including a right to receive a written statement of the terms of their employment and the right to paid maternity leave. You should ensure that you have the appropriate contracts and policies in place.

Health & Safety
Employers have duties under health and safety law, including assessing risks in the workplace, ensuring that any risks of injury are controlled and minimised and that employees are suitably trained.

Data Protection
Businesses which process personal data have certain obligations under the Data Protection Act 1998.  You may need to register your business with the Information Commissioner’s Office.
As always, the correct legal and professional support at the outset will help to ensure that your business starts off on the right foot, and avoid stressful, costly legal troubles later on.