062 – Navigating the small business legal minefield
The simple legal tools you need to succeed
Understanding the legal part of any business can be incredibly confusing for many entrepreneurs. You don’t know what you don’t know. In this week’s episode lawyer and author, Jeremy Streten guides us through the sometimes murky world of the law. For fifteen years Jeremy has been helping small business owners better understand the legal help they need. Now, he wants to demystify the process for entrepreneurs who sometimes have to deal with lawyers. To that end, he has created The Business Legal Lifecycle to stave off lawyers who are often trying to look smarter than they really are.
We are in the middle of a business revolution worldwide. There will be one billion companies operating by 2020. But most of those will be small businesses who can’t afford the kind of legal advice that big companies receive. Most companies are not going to have all their legal paperwork in place when they start operations. That kind of thoroughness isn’t realistic in an age of companies being able to start with just an internet connection. But in Jeremy’s opinion, business owners need to at least have a plan in place very early. If you don’t know where you’re going how are you going to get there?
When should you become a company?
It depends. The problem with being a sole trader is that you are liable for everything you do in your business. It’s the best way to protect your assets. That said, you will eventually pay roughly the same amount of tax.
The right insurance is important
So many people buy insurance but don’t look very closely at the policy. Are you covered for flood? How about a fire? If you haven’t made sure, your business is at serious risk of bankruptcy if you don’t make sure.
Intellectual Property is important
If you’ve developed a great idea you need to protect it. Businesses have had to fold because a bigger company swooped into trademark an idea or brand name that someone else created.
You have to prepare for expansion
Whether you want to grow your business or want to create a franchise you have to have the right structure in place. If there are problems in your company now they are only going to get worse as you get bigger.
Free goodies for you!
Jeremy has prepared a great little tool for you to better understand what you need for your business going forward and it’s free for our listeners! Just go to BusinessLegalLifecycle.co.au/test and enter the coupon TeamGuruPod.