New businesses have a raft of legal issues to contend when they are getting their business up and running.
Research from the Global Entrepreneurship Monitor (GEM) shows that 20% of the working population in the UK are either running their own businesses or expect to start a business in the next three years
The UK Government is seeking to fuel the entrepreneurial spirit through its £82.5 million StartUp Loan scheme which was launched earlier this year for people aged 18–24 looking to start a business. The announcement last month of a bank for small business loans is also expected to help new businesses off the ground.
Whilst a lot of the attention for any start-up will be on raising capital and winning new customers, there is a risk however that they could overlook the legal and regulatory issues.
Commercial law solicitor Jonathan Goldsmith of Enfield solicitors Vanderpump & Sykes LLP commented: “Getting legal advice early on could save you having to pay a high price when things go wrong further down the line. These include tax matters, employment contracts and rules, supplier contracts, health and safety regulations and in some cases commercial property leases, as well as intellectual property matters, all of which could get new businesses into difficulties. Start-ups can reduce their chances of being caught out by red tape by getting it right first time.”
Law Society President Lucy Scott-Moncrieff said: “While there is a clearly the enthusiasm and desire for start-ups, there is also the reality that many new businesses fail.
"New enterprises face particularly hard challenges, such as cash-flow problems and contract issues with customers and suppliers that could potentially cripple them. Getting the advice of a solicitor early on not only helps guard against risk, it can help entrepreneurs see what the challenges might be as they begin their journey into owning, managing and making a success of a business.
"Access to a business law solicitor is a vital asset for any new or growing business."
If you would like advice on setting up a business please contact Jonathan Goldsmith on: 020 8370 2855 or JonathanGoldsmith@vanderpumps.co.uk.