Australia has a very vibrant and eclectic start-up community with a variety of companies who began using this very business model, ranging from Judo Bank based in Melbourne to Canva graphic design situated in Sydney. Their success can be emulated with the support of legal services offering experienced and trusted business lawyers. Here are seven reasons why you need to link up with a lawyer in order to see your company launch successfully.
1. Understanding liability and risk
Personal liability means that your home and other personal assets could be at risk as different business forms offer different types of protection. Adelaide legal services employ lawyers who have both the experience and the know-how to help you avoid the sort of pitfalls which can be costly and damaging to a company’s reputation.
2. Putting in place the right contracts
If you don’t get contracts with staff or landlords or suppliers right from the start, this could end up costing you both time and money and you may even end up being taken to court. Getting the right clauses in place, ensuring you follow employment legislation and even ensuring that as a tenant, you understand your rights before signing up to a lease, is where a business lawyer is worth their weight in gold.
3. Maximising the value of the company
It is important to know the difference between sole traders, limited liability companies and partnerships because there are different tax benefits for each. Providing your start-up meets the relevant requirements, there could be savings to be made around taxation, which can be ploughed back into the business. Business lawyers also have great contacts and networks and may even be able to introduce you to angel investors, for example.
4. Increasing the chances of success
As business lawyers are very good at spotting trends and patterns in the sector, they can give sound advice on how to avoid common pitfalls. If you are setting up with another individual, then a lawyer is the right person to talk to both of you about having a co-founder agreement in place. Down the line, if one of you want to pull out and sell up, this agreement will be invaluable in protecting the interests of all concerned parties.
5. Getting the proper business premises
Finding a place to operate the business from is one of the first steps a start-up should consider. Landlords want to rent out their property but there could be restrictions placed on buildings or zones around noise pollution, change of use, or other regulations that are not made clear. A business lawyer can check these against the type of company you are going to operate, and also ensure that the relevant business insurance is in place to cover your occupancy of the site.
6. Drawing up a service level agreement
When first starting out in business, you want to give 110% to your clients and there is a tendency to take on too many orders or contracts for fear of missing out. Over promising and under delivering will ring the bells for the end of a business. Consumers will push you for special deals, discounts, immediate delivery so you need to have a proper service level agreement in place, otherwise, you could be at higher risk of legal claims and lawsuits. Making sure you do have everything in writing and that it is couched in terms that everyone will understand being clear and transparent, is the job for the business lawyer.
7. Avoiding costly and time-wasting mistakes
Not every mistake made at the beginning of a business start-up is going to be easy to fix. Getting it right from the beginning in terms of how the company is set up, the type of investment and returns and so on is key. You will not necessarily have all this knowledge at your fingertips and you are going to be so immersed in getting the company going, such that you may not see a gaping hole, even if it is right under your nose. A lawyer is the one person who can give that impartial advice and who will be able to guide you through the maze of legalities and list of requirements and regulations, that apply to the sector you are going to be operating in.
A business lawyer is going to be the best investment you will ever make, so pick up the phone today and start your dream company.
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