5 Telltale Signs Your New Startup Business Could Be Breaking The Law
Getting a new business off the ground is both an exciting and busy time for any entrepreneur. There are many things on the to-do list that must get ticked off before launch.
When the big day arrives, people look forward to working with new customers. And, of course, growing their new enterprises!
The sad truth about many startups is they often end up breaking the law. Most people don't set out to do that intentionally. They just aren't aware that a law was getting broken! Are you setting up a new business? If so, these five telltale signs are a red flag for your business. Make sure you don't fall afoul of them:
1. You don't have any employers' liability insurance
When you set up a new business for the first time, you'll have to get insurance. There are a plethora of different products that offer a range of cover levels. If you hire employees that work directly for you, you need employers' liability insurance.
Did you know that it's against the law if you don't have it? Believe it or not, employers' liability insurance isn't expensive. Most insurers will even let you pay for your cover on a monthly basis.
2. Your working environment isn't safe for your staff
As a business owner, you have to take responsibility for the welfare of your employees. At least, while they are working for you at your premises.
Health and safety is a topic that many startups fall afoul of during their early years. That's because they aren't aware of the things they are doing wrong. To avoid that problem, health and safety consultants, Peninsula, and other providers like them, should get utilised. They can tell you where you're going wrong and the steps you need to take to put things right.
3. You forgot to register your business
Before you start trading, it is a legal requirement that you register your business. The main reason to do so is for tax purposes. In a nutshell, if you make money, the government needs to tax your profits.
Anyone can call themselves a business. But, you need to make it official first before you start promoting your products and services.
4. You are using your home as business premises
The law surrounding working environments can seem complex. But, when you think about it, the law isn't that hard to understand. Let's say you run a consultancy business. You are usually okay to work from home, either by using your living room or a dedicated area as your office.
But, if you do things like preparing and selling food, the law might prevent you from doing so at home. You should always check the legalities of working from home.
5. Forgetting to pay for certified product testing
Some physical products need certification before you can sell them to retail customers. If you don't have it, you could end up getting prosecuted for your mistake.
Things like electronics goods and toys are a couple of examples. With clothes, it can be a bit complicated. If you sell to retailers, you need certification that satisfies their safety requirements.
There are a plethora of different products that offer a range of cover levels. If you hire employees that work directly for you, you need employers' liability insurance.
There are a plethora of different products that offer a range of cover levels. If you hire employees that work directly for you, you need employers' liability insurance.