Is It A Coincidence Well Managed Businesses Have Fewer Legal Problems?
Sowing the seeds of a well-managed business, with sound policies and procedures, will reap the benefits later on. Having structured employment frameworks, customer relationship management systems and contractual agreements in place usually leads to happy employees, clients and suppliers and thus, fewer legal problems.
Customers, Employees And Suppliers
It clearly helps your business to profitably grow if you have the benefit of a loyal and happy customer base. Your business is only successful as your reputation and it is your clients who keep this alive. High levels of customer satisfaction ensure that clients are kept happy and this leads to fewer disputes and strong goodwill.
Equally experienced and capable employees, who feel valued and protected within your organisation, will add value and save you time and money. Bad employee management can often lead to lengthy and costly legal problems regarding contracts, pay and working conditions.
Having HR systems in place, no matter how small your business, is a good start and this should cover things like payroll, benefits administration, tax, recruitment, dismissal, policies, procedures and compliance. There should also be safeguards to ensure your business is kept up-to-date with current legislation.
Any confusion on these issues can cause major legal problems for your business as well as employee dissatisfaction.
In addition, businesses who nurture strong supplier relationships often have the advantage of favourable credit terms. Furthermore suppliers who have a good understanding of your business can often provide valuable assistance with changing requirements.
Robust business planning and organised banking and finance arrangements will help you with the day-to-day running of your business and also establish a strong earnings track record.
If you don’t think about these things early on then you could find that your business has gained a poor reputation for the future investment/financing arrangements. Moreover you if your business has earned a solid reputation of paying trade creditors on time then this can only help you procuring equipment in the future for financing, invoice discounting and other credit arrangements.
Regulatory burdens appear to be a major obstacle for smaller businesses as they often lack the required level of knowledge as to which regulations apply to them and how to deal with any problems. Well-managed businesses consider compliance issues early.
As part of managing the health and safety, well-managed businesses think carefully about the risks in the workplace and control the accordingly. By carrying out risk assessments at regular intervals, you are identifying what may cause harm within your business and taking reasonable steps to prevent unnecessary risk. Implementing sensible measures to mitigate risk will save you unnecessary costs, paperwork and headaches if you get into trouble down the line.
Legal Problem Advice
Well-managed businesses consider the importance of legal problem advice early on.
Proactively discussing your business plans, aspirations and goals with your legal team from the outset will almost certainly prevent problems later on. Ensure that you have sensible legal agreements in place is a given: agree from the outset who owns what and make sure the structure is formally documented to avoid confusion and disputes.
In addition to advice on the legal structure and documentation required to set up your business, there is real value in pre-empting potential stumbling blocks in the future.
Make sure the lawyer or firm you use, have the necessary skill set to deal with your growing company. They might have been sufficient when you launched, but do they offer the best expertise and value today?
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