The Goughs Guide - six steps to running a successful start-up commercial www . goughs . co . uk
STARTING UP A BUSINESS OF YOUR OWN CAN SEEM DAUNTING , BUT GOUGHS ARE ON HAND WITH EXPERT ADVICE TO HELP YOUR BUSINESS GROW AND FLOURISH
Patrick Mears Partner , Commercial Department
At Goughs we are aware that starting a new business can appear to be a legal minefield , full of red tape and complex legislation . The Goughs six step guide to running a successful start-up provides an overview of the key factors that need to be considered to enable your business to flourish .
STEP 1 : HAVE YOU CREATED A BUSINESS PLAN ?
Before you begin to consider the key legal requirements of running your business it is essential to draw up a business plan in which you clearly define the aims , objectives and strategies required to maximise the likelihood of success for your business .
Points to consider include : What product / service will you be selling ? What is the name of your business ? Who is your target market ? How will you market your business ?
Whilst we can ’ t directly help you write your plan , our experienced team of commercial lawyers will help where we can .
STEP 2 : HOW WILL YOU STRUCTURE YOUR BUSINESS ?
The three main options include :
• Sole trader
• Partnership ( Partnership or Limited Liability Partnership )
• Limited company
Points to consider : Tax consequences , liability issues and what form of separation do you want from your business ( are you going to be owner manager , is someone else going to manage it etc ).
At Goughs we are able to advise you on the different structures and assist in the setting up and creation of your company or limited liability partnership .
STEP 3 : HOW WILL YOU FINANCE YOUR BUSINESS AND WHERE WILL THE FINANCE COME FROM ?
The three main options include :
• Your own savings
• Bank finance ( a loan , a re-mortgage , an overdraft )
• Investment
Points to consider : If the investment comes from outside of the business are you protected and are the investors ?
At Goughs we can advise / prepare loan agreements , partnership agreements , shareholder agreements and forms of bank security .
STEP 4 : WHAT PREMISES ARE REQUIRED ( IF ANY )?
The four main options include :
• Renting premises
• Buying premises
• Working from home
• Creating an online presence
Points to consider : What ’ s the most effective location for your business ? What level of expenditure can you afford ? Are premises really necessary for your business ?
At Goughs we can manage and advise on all aspects and stages of a property transaction .
STEP 5 : WHAT LEGAL DOCUMENTATION NEEDS TO BE IN PLACE ?
An essential aspect of any new start up is to clearly define how the business will operate and function .
Four key documents include :
• Terms and conditions of business
• Employment contracts
• Service / Supplier agreements
• Partnership agreement / Shareholders agreement
Points to consider : Contracts and agreements are an everyday part of business and serve a vital function in ensuring that many aspects of a business are legally effective .
At Goughs our commercial department can provide tailor made contracts that meet the individual needs of your business .
STEP 6 : ARE YOU FULLY AWARE OF ALL THE REGULATIONS THAT WILL AFFECT YOUR BUSINESS ?
Certain industries are heavily regulated . Therefore it is essential to fully understand the relevant regulatory scheme relating to your business and the cost of compliance .
The following regulations are likely to affect nearly all businesses :
• Health and safety regulations
• Employer / employee related regulations
• Financial and taxation regulations
Points to consider : To what extent will health and safety regulations affect the running of your business ? Are you aware of the statutory requirements of employment when taking on employees ?
At Goughs our dedicated employment team will ensure that your business is kept up-to-date with all the relevant requirements relating to your employees .
Starting up a business can be a steep learning curve and you ’ re likely to come across a variety of challenging situations . But remember , you ’ re not on your own . We understand the demands and complexities of running a business and our dedicated and experienced team of commercial lawyers are always on hand to provide essential advice and analysis .
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Patrick specialises in
• Business start ups , sales and acquisitions
• Pension scheme transactions ( SIPPs and SSASs )
• Commercial landlord and tenant work
• Corporate services and commercial property
Calne 01249 812086 Chippenham 01249 444499 Corsham 01249 712193
Devizes 01380 726913 Melksham 01225 703036 Trowbridge 01225 762683
For more detailed information on any of the areas outlined above please contact patrickmears @ goughs . co . uk phone 01249 444499 or visit our website www . goughs . co . uk .