Business Start-Up

Practical Matters

Finding Suitable Premises

With a lot of businesses, this may be the difference between success and failure. You will need to ensure that you can carry out your type of business from the premises. The premises must comply with fire regulations, the Health and Safety at Work Act and the Factories Act.

The best places to find a property are through local enterprise agencies and estate agents. If you are renting premises, they could be rented under the terms of a lease or licence. A lease commits you to paying a rent for a certain length of time but gives you security of tenure for a specific period. You will have to pay a solicitor to look at the lease to ensure that you are aware of the commitments that you are taking on. Licences are more flexible. They normally offer monthly rentals with short notice periods. They are ideal if you envisage moving within a short time or do not wish to commit yourself for a long period.

Insurance

Third party insurance for business motor vehicles and employer's liability insurance are legal requirements. Other types of insurance to be considered are as follows:

• public liability;
• property, fire and theft;
• business interruption - consequential loss of profits;
• Keyman - covers the death or disablement of key people and enables the business to continue without them;
• business assets;
• permanent health - provides income if you are unable to work due to illness;
• bad debt;
• life assurance;
• pensions - for yourself and your employees.

Contracts of Employment

These are required by law and set out the terms of employment of employees. They also stop a lot of disputes arising that could waste time and create an unhappy workforce. Standard contracts are available in stationery shops, but a solicitor should be able to provide a standard contract for you.

Patents, Copyright and Trade Marks

If you are using a trade name or have invented a product, you will need to stop other people using your ideas. You will need to use a patent agent to register your idea or product. Copyright arises automatically and there is no need to register it.

Recruiting Staff

Employing people is a major responsibility. After you, they will be the people representing your business so employing the right people will be very important. If you have a short-term staffing requirement, you should consider using temporary staff or sub-contracting work.

Staff can be obtained from Job Centres, newspaper adverts, careers offices, employment agencies or via friends. If you use an employment agency, you will be charged a fee in the form of a percentage of the annual salary. Using an employment agency should save time and only provide suitable applicants but agencies do vary in their quality.