In today's episode, I want to shine a light on three of the most common legal issues that I see affecting Australian business owners: risk mitigation, legal documents, and systems and processes. They might sound simple, but these are really important issues that if not addressed, can have an enormous negative impact on businesses.

The first of these legal issues is the inherent risk that comes with starting and running a business. The most effective ways to mitigate risk is through your business structure, insurance and legal documents. I’ll take you through why you need to choose the correct business structure that will suit your business, whether it’s a sole trader or a company. If you’re a sole trader, your personal assets are exposed (that includes your home and savings accounts!) so it’s absolutely vital that you consider your risk when choosing the right business structure. 

Insurance is a vital part of your risk mitigation strategy because you never know what the future will bring. We've all got insurance for our cars, homes, contents, etc. but when it comes to businesses, I don’t see enough business owners making sure they’re covered and protected for whatever tomorrow brings. 

Starting a business involves a significant amount of legal work and documentation, from registering the business to drafting contracts to protecting intellectual property and that brings us to our second issue - legal documents. It’s essential that small business owners have a good understanding of the legal requirements, have their legal documents in place and always seek professional legal advice when needed. If you don't have your documents drafted properly for your business, you’re leaving money on the table and you’re leaving yourself exposed every single time. 

Thirdly, let's talk about systems and processes. In order for a small business to operate efficiently and effectively, you need to have well-defined systems and processes in place. These include things like accounting systems, inventory management systems, and customer relationship management systems. You should take the time to carefully evaluate your business processes and identify areas that could benefit from improved systems or automation and not using DIY legals or templates. This may involve investing in new software or hardware, legal advice and documentation, or it could simply involve refining existing processes to be more efficient.

Tune in and take a moment to reflect on these three legal issues to reduce your risk, protect your business, and create a really solid foundation for growth and success. 

LINKS:

Previous episodes mentioned: 

• You DO need insurance, here’s why, with Laura Meyer

Resources mentioned:

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