When you work for someone else you generally don't need to think too much about the legal issues surrounding your business as there is usually someone to look after this area. Perhaps the most you have had to do is check some clauses in a contract.

Our advice concerning legal issues to simple. Be prepared to put your hand in your pocket to get ensure the following issues are clearly defined and sorted out at the start. The business world today is full of sharks from the individual to the corporate company (just remember some of the recent corporate scandals). If you go to Court and your documents are not correct you will have a problem. The basic documents that you need to ensure are in place from day one are ....

There is no easy way to ensure your terms will stand up in Court - the law is constantly changing and you need good legal advice.

Choosing a solicitor is one of the most difficult decisions you will have to make. We have experienced the worst service of all professions from the legal profession and the Courts over a period of 10 years of being dragged into disputes that we wanted nothing to do with. The system is designed to keep you out and take a long time. The Courts don't want to see you there because when something comes to Court it means someone is thinking they can force someone to do something using the legal system rather than resolving the problem themselves. Sometimes the Courts are the only way as some people dig their heels in so far negotiation will not work.

Equally' there are a few thugs around in business who think they can use the legal system to bully people into paying for things they don't want or forcing unfair contract terms. Having said this if you do not know how the legal system works you will not be successful in taking your business forward. It is well worth the time to understand how the both the Civil and Criminal legal systems work. As a company Director you could be liable for criminal proceedings relating to the company activities.

You will be tempted to do business with friends. It is highly likely that your friends will take advantage of your generosity as you start to build your business. As you are building your business you will invest in other people and their business. We warm you to ensure that the closer your relationship with a potential client the tighter you tie down the contracts and terms of business. More relationships are lost through doing business on an informal basis with friends, family and close acquaintances. Human nature is such that people will always try to take advantage and get something for nothing. Of course, you would never do that!

An important aspect to consider is where the customer requirements are uncertain. Many of the contracts we can be involved in are open ended - the customer themselves doesn't really know what they want - they need us to help them define what they want. This is where it can be tempting to say lets not have a contract at the start. Define everything and put a price on it - even if it is a nominal price. Anything that you give away for free will be treated as no value. Many people will expect you to continue to give free services because they have placed no value on anything you do or say because you gave away a little bit. Those "clients" are best removed from your portfolio as soon as possible.

A good yardstick of the value that someone places on you as a small business is how quickly they pay your bill and how many times you have to chase them. The worst payers are generally "friends".

Finally, make sure you take out small business insurance before you start trading. Ensure, that the insurance has legal expenses insurance and if possible contract dispute cover - if that is available. Most insurers are now excluding contract dispute cover due to so many disputes. Make full use of all legal helplines if you have a query.

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