TOOL KIT FOR NEW BUSINESSES In these difficult economic times we are advising many people about their redundancy packages and their Compromise Agreements. Some who have been made redundant will want to retire, but many are looking to set up in business, either by themselves or with others. If you have set up in business or are intending to do so you need professional advice. Although you don’t want to pay large legal and accountancy fees, especially when you are starting a new business, effort spent getting the business right at the beginning can save a lot of time and money later. Most businesses need:- 1. A Lease. Even the simplest lease is at least 4 pages long. The clauses have been put in by the landlord’s solicitors to help the landlord. You need to make sure that you understand them and be willing to try to negotiate the terms. Remember that many landlords are very worried about having empty properties, and they may be ready to agree to change the lease terms. 2. A Partnership or Directors Agreement. Whether you form a limited company or a partnership, the owners of any new business need to agree between themselves what should happen in the future. Sooner or later the owners will have a disagreement, or will amicably want to go their separate ways. Difficulties may occur if, for instance, one owner becomes too old to work, or dies, or wants to transfer shares to somebody else, or if the partners fall out. The agreement should make it much easier to cope with these sorts of difficulties. It is better to agree how to resolve these issues before they happen. 3. Terms and Conditions. Whether you are selling goods or selling your own time (services) you need to set out the terms and conditions on which you supply your products. The terms and conditions will show how much credit you are willing to give, when you can put up prices, whether you charge interest on unpaid bills, what guarantees you give. Having the right small print can save you money and save uncertainty, and can also strengthen your hand if a dispute arises. 4. Employment Contract and Disciplinary Procedure. Even if you only employ 1 person, you must have an employment contract and disciplinary procedure, otherwise you will be breaking the law. We will provide a tool kit for new businesses by supplying the Partnership or Directors Agreement, employment documentation and Terms and Conditions of sale. We will also advise you on the terms of your lease. We are members of “Solicitors for your Business” and if you are starting a new business we will give you a free half hour consultation. If you are interested, please contact Gareth Edwards or Chris Williams. |