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Setting up a business involves complying with a range of legal requirements. Find out which ones apply to you and your new enterprise.
What particular regulations do specific types of business (such as a hotel, or a printer, or a taxi firm) need to follow? We explain some of the key legal issues to consider for 200 types of business.
While poor governance can bring serious legal consequences, the law can also protect business owners and managers and help to prevent conflict.
Whether you want to raise finance, join forces with someone else, buy or sell a business, it pays to be aware of the legal implications.
From pay, hours and time off to discipline, grievance and hiring and firing employees, find out about your legal responsibilities as an employer.
Marketing matters. Marketing drives sales for businesses of all sizes by ensuring that customers think of their brand when they want to buy.
Commercial disputes can prove time-consuming, stressful and expensive, but having robust legal agreements can help to prevent them from occurring.
Whether your business owns or rents premises, your legal liabilities can be substantial. Commercial property law is complex, but you can avoid common pitfalls.
With information and sound advice, living up to your legal responsibilities to safeguard your employees, customers and visitors need not be difficult or costly.
As information technology continues to evolve, legislation must also change. It affects everything from data protection and online selling to internet policies for employees.
Intellectual property (IP) isn't solely relevant to larger businesses or those involved in developing innovative new products: all products have IP.
Knowing how and when you plan to sell or relinquish control of your business can help you to make better decisions and achieve the best possible outcome.
From bereavement, wills, inheritance, separation and divorce to selling a house, personal injury and traffic offences, learn more about your personal legal rights.
Getting the right business finance is essential. Investment, bank finance and other forms of funding can help successful businesses grow, while viable businesses can be destroyed by cashflow shortages.
You need to decide which kinds of financing best suit your business and understand how to present a convincing case to potential sources of equity finance or bank lending. The right choice puts your business on a firm financial footing, reducing risks and increasing financial returns.
Your business plan and financial forecasts are the first step to successfully funding your business. Together, they help you assess your financial requirements and identify the most suitable mix of different kinds of finance. Preparing a range of forecasts based on different assumptions allows you to assess the risks and identify the need for contingency funding in case the business does not perform as well as you hope.
High-risk businesses generally require a relatively high level of equity finance: for example, your own investment in the company's shares. Businesses that produce predictable amounts of surplus cashflow can afford to have a higher proportion of loans and other forms of bank finance.
A convincing business plan is also a key tool in persuading investors and lenders to support you. Lenders will want to be sure that your business is a good risk and will be able to meet interest payments and capital repayments. Investors will want to know how and when they can expect to see the return of their investment.
Equity investment provides the core funding for most businesses. Banks and other lenders will be reluctant to provide financing unless there is a cushion of equity finance.
Business owners, family and friends are often the first source of equity funding, particularly for small businesses without a track record. External sources of investment include so-called business angels, wealthy individuals who typically invest amounts from £50,000 upwards for a share of the business. Professional venture capital investors operate in a similar way but on a larger scale.
For the business owner, selling part of the company to raise equity finance can be a difficult decision. External investors look for the prospect of substantial returns, and will rarely value your business as highly as you do. Bringing in investors may also involve some loss of control, though the terms of the investment can be tailored to address this issue.
A bank overdraft is a simple and flexible way of providing day-to-day working capital. Alternatives such as factoring and invoice discounting offer funding that automatically increases as your sales grow together with extra credit control and debt collection services.
A bank loan is generally a more appropriate form of medium-term financing. Loans may charge a fixed or floating interest rate, and can be tailored to match the life of an asset – such as the equipment you are acquiring – and your cashflow forecasts. Commercial mortgages can be used for premises, while lease finance can be a cost-effective way of funding purchases of equipment and vehicles.
A bank will generally require some form of security before providing financing. A typical small business loan, for example, will require a charge over the company's assets. The bank might also want the company's owners or directors to provide a personal guarantee – putting personal assets at risk if the business fails.
You may also want to check whether you qualify for a business grant. Business grants typically come in the form of subsidised loans towards the cost of a project that offers some wider benefits, such as increasing employment in a deprived area.