Owning your own business is a dream for many, and that is understandable given that the rewards a successful business can bring are significant. One way to shortcut the process is to buy an existing business, but the process involves many pitfalls, and as some of them are legal, having the advice and support of a commercial lawyer throughout the purchase process is essential.
Not every aspect of buying a business will be a legal one, with matters such as business finances, new branding, media announcements of the change of ownership, and many others, not all necessarily requiring the help of a commercial lawyer. Nevertheless, having a commercial lawyer being given an overview of everything will ensure that nothing happens that may come back to cause you a major legal headache.
Whilst every sale and every purchase of any existing business will have their own peculiarities, at the core of most of them will be four essential legal steps. These four legal steps need to be navigated correctly to ensure that the purchase of your new business can proceed without any major hurdles or more to the point that it does not fall through altogether. We have covered each of them in some detail: Review of the Contract, Amendments, Review of the Commercial Loan Agreement, Exchange and Settlement of the Contracts.
When it comes to setting up a new business, hiring a good accountant can actually be one of the more difficult things to get in order. The tax and bookkeeping requirements differ between industries and according to what sort of business you are setting up, which means that it is easy to make mistakes if you don’t know the tax system well.
If you are starting your first business, and don’t really know what your obligations are, then consider the following:
Speak to an accountant!
If you really don’t know where to start, then it is always a good idea to speak with an accountant or professional bookkeeper. An experienced accountant should know exactly what your requirements are when it comes to setting up a new business. If possible, try and choose someone who has experience in the field that you are starting your business in.
Although you may decide that you don’t need to hire an accountant regularly, an initial consultation can help you get set up. Consulting a knowledgeable tax lawyer may also be prudent depending on how complex your business structure is going to be. Knowing what sort of records you have to keep, what sort of things you have to report, and how you need to report them can help you make sure that you fulfill all of your tax obligations.
It is a sad fact that many new businesses go to the wall within a few years of starting up. Sometimes it is because of burnout; the owners simply didn’t realise how much time and effort it would take. Other times it is because they were not properly prepared to run a business. Here are 10 tips to make sure that you get a strong start to your new business so that the momentum will carry you through. Following these tips will help your business to succeed.
- Make sure your business offers what people want. You may be vitally interested in decorated horse shoes, but are horse-owners? It would be far better to offer a basic horse shoe, then offer decorative ones as a side. At least you could be sure of selling the basic ones, since all horses that are ridden should be properly shod to protect their feet. By ensuring your stock is popular you can almost guarantee sales.
- Make sure your cash flow Amazingly, many people who start out in business accept that debt is normal. Of course you will have to pay quite a bit to start a business, but you also need to have cash coming in as soon as possible. It is essential to keep the cash flow positive; don’t spend more than you make over a year. You may have to ask for a deposit up front for services, but at least you will have enough to pay your bills.
Many people decide to start a business simply because they don’t like working in a 9-5 job. They think with their own business they can choose hours that suit them or take time off whenever they like. This could not be further than the truth. Starting your own business is time-consuming and the buck stops with you.
If you are not there to see that everything is done on time or properly, your business will head very quickly to failure. That said, there is something about running a business that gets into the blood. The challenges and the frustrations are all part of the fun. Here is a checklist for starting up a business that can help smooth the way.
- Make sure you have a great idea that you are passionate about. If you don’t care greatly for your business idea you are likely to abandon it more easily when the going gets tough. And you won’t give it your all in a way that makes success surer.
- Analyse the sector your business idea is in to see if it is in a growth period or stagnant.
- Assess likely risks and work out a plan for minimising them.
Every second person wishes to become a business tycoon and has a luxurious life. But is becoming a successful businessman easy? Just having a fund is not enough. Proper planning and execution of plans play a vital role in running a business. With high rates of inflation and deflation affecting the economies of the world no business whether small scale and large scale can remain unaffected by it and run business in adverse conditions is also a challenge.
Numerous factors which play a crucial role in the long life of business but at the time of commencement of an undertaking few elements too should be emphasized. Following are some of the factors to be analyzed and surveyed before putting the business plan on the floor.
- It is advisable that you breathe and live for the proposal you are thinking of. You cannot give a thorough devotion without putting all your funds and assets at stake for the venture. It is not only perilous but also like burning your hands intentionally.
- It is wise to invest before your money to understand the trait of the business and scope of growth so as to relinquish the business plan if the market prospect is not conducive for business.