TOP TIPS FOR STARTING YOUR OWN BUSINESS
Starting a business while in employment? Did you know that there may be restrictions in your employment contract that apply to any new venture you start? Read on to find out more...
tarting a business can be an exciting time. It can also be a challenge trying to navigate the laws, regulations and rules that apply to your new venture. We have put together some top tips for ensuring you stay compliant on your journey.
1. Decide on the type of business you want to set up
A business entity is the vehicle a person or group of persons use to carry on a trade or activity. There are a number of different entities that you can choose to set your business up as. The choice you make will determine the laws that apply to the entity, the ease of setting it up and the liability that the people involved will have. The internet has many different articles and there are a number of helpful books that describe each type of structure so be sure to do your research and weigh up the pros and cons of them all. Each entity will be subject to different rules surrounding documentation. For example, a partnership should be set up with a partnership agreement to determine the dealings between the partners. Without one, you risk running into problems further down the line when it comes to situations such as sharing of profits and death of a partner.
2. Check your employment contract
Perhaps you are employed full time and looking to start a business encompassing your hobby on the side. Or maybe you are employed part time and looking to set up a business as a way of bringing in extra income. Whatever your situation may be, if you are employed by a company it is vital that you check your employment contract before starting out on your new venture. Some employment contracts will have restrictions on what ‘interests’ you are allowed to have whilst in employment with them. Interests will include setting up your own company as well as shares held in a company and can even extend as far as being the spouse of a partner who owns half of a business. Checking for this clause in your employment contract will be especially important if you intend to set a up a company providing goods or a service that is related to that of your employer. Ensure you are fully aware of any restrictions and seek legal advice where necessary to understand your legal position.
3. Get clued up on the law surrounding your sector
Did you know that the law governs the time period that a consumer has to return a faulty item, however purchased, and obtain a refund? Did you know that before you can run your first class as a personal trainer, you will need insurance? Each sector will have specific laws and regulations that govern the provision of goods and services in that area. It is vital you get clued up on what applies to you to avoid falling short of the law. Up to date research is key. Get registered with some of the governing bodies and associations that regulate businesses in your sector to ensure you are well informed about any changes that might affect you. Navigating the path to starting your own business can be tricky, but with the right information you can ensure you abide by all the relevant rules and get your business off to a flying (and the right) start.
“Some people dream of success, while other people get up every morning and make it happen”. -Wayne Huizenga