The UK economy has been rocked by a number of large-scale problems in the past few years and the aftershock has rippled through many an industry, business and home. The jobs market has been unavoidably affected by the country’s economic woes, with the recession driving more people away from the labour market and into entrepreneurial territory.
Research from the University of Strathclyde recently revealed that the jump in total early-stage entrepreneurial activity (TEA) in Scotland means the country now matches the average for 20 innovation-driven economies.
Small businesses: considerations to make
Starting a small business is becoming a popular option in a labour market that is increasingly difficult to break into and record numbers of new companies are being born countrywide. Launching a small business is no easy feat and involves a lot of planning prior to implementation: market research, start-up funds, sales estimates, cash flow projection, cost of borrowing, legal issues – all must be considered.
The legal aspects of running a small business may not immediately jump to mind but it is an incredibly important consideration. According to figures from the Legal Services Board, 38% of small businesses experienced a “significant” legal problem in the past year. Almost half of these difficulties had an adverse financial impact on the business in question.
Consequences of legal confusion
These legal troubles resulted in an overall cost of £100 billion to UK business, with the average cost of each standing at £6,700. Why? Overseeing the legal aspects of a business on your own may seem cheaper at the outset but in fact running the risk can have catastrophic effects on your finances. Since cash flow is the lifeblood of business, anything that could jeopardise this requires sufficient contemplation.
Employment legislation alone is constantly transforming, with new proposals and legislations popping up left, right and centre. Non-compliance with any missed or misunderstood laws can be vastly damaging to a small business, especially if it is still struggling to get off the ground.
Prevention is better than cure
The key is prevention – rather than waiting for the worst to happen adopt a proactive outlook when it comes to your legal affairs. Regional firms can help with this and we found Birketts Lawyers a great choice. For example, Birketts lawyers in Cambridge, Ipswich, Chelmsford or Norwich can identify the aspects of your business affected by legislation and conduct a comprehensive legal health check to eliminate potential threats. We found their site easy to navigate and packed full of great advice – just what we were looking for.
Business law is often complex and subjected to frequent change, so remember to opt for a firm which is simultaneously big enough to understand even the most recent developments and small enough to deliver a bespoke service.