An entrepreneur friend who hadn’t been to business school, once mentioned that as a business owner there is ONE key thing he did that brought him success: continuous education.
He was explaining how constantly learning is the best way to run a business and he claimed that the only reason he lasted in business for more than 15 years is because he wanted to know HOW and WHY. He kept learning everything he needed to keep his business on top of the game.
It’s different, however, for every business. When big corporations need to acquire new knowledge or skills, what do they do? Hire someone who already has them!
But what if you are a small business owner and can’t afford another person on the payroll? You get a book or even better – get professional training.
Understanding the rules of business means that you can control your business and not it – you. In the same way – understanding the legal obligations of your business means you have control over operations and can take the best decisions.
In the same time, understanding legal means that your business is protected from claims and lawsuits. When you know your legal rights you can walk with confidence that your business will last.
If that’s something you are interested in, here are the top 5 legal obligations you need to meet and what might happen if you don’t:
1.Registering a business
Each and every business from sole trader to company needs to be registered and have a business name. If you are going to do any kind of transactions, you need to be registered.
Failing to operate under a registered business name will most probably get your practice closed. You will be fined and maybe prosecuted (depending on your activity). You will lose everything you have worked for.
Registering a business is not as hard as you think and a quick business law course can give you an idea what is the best business structure for your company.
- Licenses and permits obligations
You know that you need licenses and permits to operate but do you have them all? Don’t assume that one license solves everything. Seek information on permits before you commence new activities.
Otherwise, your whole company might suffer and your activities might be deemed illegal. Imagine building a house without a permit – you risk the whole house getting demolished.
- Consumer law obligations
These are tricky because they change all the time especially in the age of online shopping. Make sure you are aware of consumer’s rights regarding returns and product information at least.
Nowadays, consumers are strong and the smallest mistake on your side can cost you your reputation. Make sure you understand your obligations and meet them to protect your business against $1 million lawsuits because of an allergen you didn’t describe on your packaging.
- Contract obligations
Contract obligations are usually defined by the contract itself. But did you know that the lack of contract brings in obligations as well?
For example, a partnership agreement that is not in writing is overruled by the common partnership act. In short – you don’t have control over your partnership.
See, how learning the basics can prevent challenges that can escalate into huge problems?
- Industry and business specific obligations
Every business has it’s own specific obligations regarding environment, society and ethics depending on its nature.
If you are running a highly specialized business, make sure to share this with your lawyer and he or she can give you specific information.
But how do you get to understand all of these legal obligations? A brief business law course can do miracles for your legal savviness!
In fact, even authorities recommend to everyone who is a business owner or is starting a business to go through an intro business law course that covers all aspects of the business (no matter if they have a lawyer or not on their team).
Understanding your legal obligations as a business owner and manager will not guarantee your business success but it will assist your innovative products and great customer service to make it to clients undisturbed.
Legal is only hard when you don’t understand it. Meeting your obligations starts with understanding them and what are the reasons behind them.
Business law can be a hole in your company that you better close as soon as you can ….. or you risk your entire business to leak out of there faster than you can imagine.
Want to Learn More About Making Business Law Work In Your Advantage?
And I want to give you a FREE eBook that will help you start off on the right foot with business law, save money on legal fees, avoid legal trouble and create a legally sexy business.
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