From this article, you will get to know the major 4 laws every entrepreneur needs to know.
For founders, it can seem like every problem the business faces is their own personal crisis to solve. Often the reality is that many issues can be resolved by planning ahead, or hiring employees, or rethinking targets. Many countries around the world want entrepreneurial individuals to succeed with all sorts of initiatives and schemes.
Yet, only 10% of enterprises survive the first decade. Some issues are non-negotiable and, if failed to understand, can lead to serious financial issues down the line. One of these is the law – and knowing how SMEs need to be both covered and prepared when legal issues arise can make or break their already flimsy future prospects.
Here are the 4 laws every entrepreneur needs to know
1. Accidents Will Happen
Personal injury is one of the most common issues faced by businesses as they can occur in all sorts of contexts, there are many types of injury claims, and employees, customers, or the public can claim against a business and its practices. The main issue with personal injury is that successfully proving negligence in a case means often incurring very expensive compensatory costs, as well as possible fines for failing to uphold safety standards.
The best bet is to be fully insured against personal injury of employees, especially by paying for a risk assessment of the business premises and work environment, as well as cover for injury incurred by non-employees on the premises. This can include vehicles and machinery, as road accidents or accidents off-site are also common with small businesses like electricians or plumbers.
2. Tax Regulations
Upholding tax laws are non-negotiable, unlike personal injury cover, and failure to meet tax obligations carries massive financial cost, as well as potential legal challenges. Taxation can vary depending on your region or country and the need to register with the governmental body before trading for corporation tax, as well as declaring ingoing and outgoing finances each tax year are generally the minimum standard.
Once you’ve started hiring employees, their salary taxation, national insurance and potentially other benefits become your responsibility, too. As an SME, it’s often highly recommended you outsource to freelance accounting firms who can handle the day-to-day nuances of small business tax for you, and help you avoid any serious issues.
Trademarks are often one of the first things an entrepreneur thinks of when they have a business idea. You can lay claim to products and services, allowing you to own the rights to it, and avoid other competitors stealing revenue with replicants. Trademarking also has the benefit of protecting you for the long term. As a business grows, and its reputation increases, you can guard the core elements of your revenue, while also avoiding infringing on anyone else’s ideas and picking up a lawsuit.
4. Data Protection
Customer data is the hot topic right now, and you’re obliged to meet certain standards depending on where you operate. Typically, you’re expected to keep customer contact details, or anything sensitive on them, up to date, well-protected and correct to your knowledge. This also includes not holding onto data unnecessarily.
As we can see, being an entrepreneur means being a true generalist. The law alone presents all kinds of obligations and demands of a business to operate lawfully and compliantly. Relying on outsourcing functions like insurers, accountants and solicitors is a great start. However, those businesses who see their tenth birthdays and beyond do the groundwork and understand the basics to avoid nasty surprises that end their journey before its time.