perils, pitfalls and potential: setting up and running your own business
TRANSCRIPT
Perils, Pitfalls and Potential:
Setting Up and Running Your Own Business
Originally presented by John Walker - Partner, MTA Solicitors LLP
The Business Show - 3 December 2015
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Who are we?
MTA Solicitors LLP is a nationwide multi-practice law firm with
Solicitors in London, Bromley Cambridge and Manchester.
MTA Business brings together all the essential business resources that have powered the success of MTA Solicitors.
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Legal Services
HR & Recruitment
Credit Control
IT & Development
Accountancy
Marketing & PR
We help and advise business owners - whether you are just starting out or are already established:
Negotiate the sometimes complex legal market place
Advise on legal requirements and protection
Ensure that you aren’t making any critical errors in your business set up
Provide you with a network of essential business resources to help your business fly
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What do we do?
A recent report found:
Legal issues affecting small business are expensive - total annual losses to small business due to legal problems estimated at £9.8 billion
A single legal issue can be crippling for small business - average cost of each legal issue runs to around £7, 000
1 in 5 business owners who reported legal problems said these led to health issues
Small businesses most likely to seek legal advice on:
trading issues (commercial contracts, etc), tax, commercial property, business structure and employment
Source: Legal Services Board (October 2015)
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Some stats for you…
Source: Office of National Statistics
44% of start ups survive their first 5 years
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Some stats for you…
#1: Prevention is better than cure
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#1: Prevention is better than cure
Be proactive – don’t wait for the worst to happen
Review areas of the business affected by legislation
Legal health checks and document reviews can reduce / remove future issues
Having the right contracts and processes in place will help avoid damaging and expensive disputes
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#2 Negotiate Hard
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#2 Negotiate Hard
Obtain quotes from multiple suppliers to strengthen
your negotiating position
Have the contracts checked carefully, especially renewal and cancellation terms and notice periods
Contract renewal times can be the best opportunity to negotiate a better deal – not just on price
Explore various payment options – eg. fixed fee vs monthly retainer
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#3 Avoid expensive mistakes
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#3 Avoid expensive mistakes
Ensure your business is set up correctly for you – Sole
Trader? Limited Company? Partnership?
New product or service? Do a patent / trademark search to avoid possible conflict
Renaming or relaunching your product is expensive and will not enhance your reputation
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#4 Spell out your Terms & Conditions
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#4 Spell out your Terms & Conditions
Are you compliant with the new Consumer Rights Act 2015?
Are your Terms & Conditions clear?
Is your website compliant?
Remember: additional industry-specific regulations may also apply
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#5: Keep contracts clear and simple
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#5: Keep contracts clear and simple
Word all contracts clearly. Make them as easy to understand as possible. Keep sentences short and to the point.
Ensure all your business deals and agreements are confirmed in writing. A written record will prevent people from trying to change their minds or move the goalposts later on.
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#6 Keep up with changes in the law
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#6 Keep up with changes in the law
Consumer Rights Act 2015: biggest shake-up in consumer rights in a generation, seeking to simplify, strengthen and modernise UK consumer law.
30 days to get a refund: for the first time, a specific timeframe has been created in which you can reject a faulty item and get a full refund. You need to have processes in place to allow for this.
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#6 Keep up with changes in the law
Rules now apply to digital: all products, whether physical or digital, must meet standards of satisfactory quality, fit for purpose and as described.
Employment Law: consistently changing, important to keep up to date. You must provide a statement of employment, clearly laying down certain details.
Also beneficial to have policies on Sickness & Absence, as well as Maternity and Paternity.
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#7 See the potential in your marketing
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#7 See the potential in your marketing
Knowing your business and your target market is vital.
Know what success looks like for your business, as you need to focus your marketing.
Whether using traditional, digital, or a mix, measure all your activity. Repeat successes, dump the failures.
It’s easy to churn out social media content. Engaging the right audiences is a skill.
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#8 …but
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#8 …but know the rules
Data Protection: you must understand the rules around what you can and can’t do with data you collect. BIG changes come into force in 2016…
Direct Marketing: email is a huge opportunity, but not without drawbacks. Regulations are constantly tightening to combat the increasing spam.
Industry-specific regulations also exist – do you know which ones apply to your business?
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#9 Don’t just focus on one area of your business
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#9 Don’t just focus on one area of your business
• Business success involves 3 main areas:
Sales and Marketing
Finance and Administration
Operations and Delivery
• Keep all three working in unison, not just the area you’re good at or understand best.
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#10 You can’t do everything yourself
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#10 You can’t do everything yourself
Recognise your weaknesses: training and a personal development plan can help, but you can’t be Head of every department.
You also don’t need a member of staff for every department. As soon as cashflow will allow it, contract out the functions that are not your expertise.
There are great, free resources online…
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HMRC and Department of Innovation and Skills
https://www.gov.uk/government/publications/supporting-small-business-making-tax-easier-quicker-and-simpler
https://www.gov.uk/browse/business/setting-up
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Working together…
is success.
Coming together is the beginning.
Keeping together is progress.
~ Henry Ford
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Say hello!
Let’s talk about how we can help.
Call 020 8437 0777
Email [email protected]
Visit www.mtabusiness.co.uk
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