Climbing the entrepreneurial ladder is something many dream of in today’s day and age. Starting your own business and becoming your own boss can change your life, providing more control, flexibility and freedom... but how do you actually do so successfully?

Unfortunately, there is no hard and fast list that tells you EXACTLY what to do to ensure your business lasts… if only we all had a crystal ball, ay? But there are some areas you 100% need to focus on to be successful. One of these is, of course, legal.

Starting a business isn’t easy by any means (I’m sure you know that). It creates multiple challenges, presented with lots of risks. This is why covering your legal bases is KEY!

If you’re beginning your entrepreneurial journey and want to thrive, flourish and make it sustainable, then take note.

Legal Leverage Framework

Here at Jamieson Law, I’ve created what we call ‘The Legal Leverage Framework’, which outlines the essential steps business owners need to follow to ensure they have solid foundations to grow. Let’s dive into it:

Step 1 – Setting Up

If you want to grow a flourishing brand, the first step logically surrounds setting up your business!

Setting up is like playing Jenga – every business needs certain steps to set up, and those steps are like Jenga blocks. If you’re missing one, you topple over.

There are three ‘blocks’ to consider:

1. Choosing the right business structure and which works best for you:  sole trader, partnership or limited company?
2. Registering with the Information Commissioner’s Office (ICO). If you’re a UK business processing personal data, you need to register with the ICO for an annual fee of around £40-60. Processing personal data can be something as little as taking client names and email addresses. Find out more here: ico.org.uk/for-organisations/data-protection-fee/
3. Choosing the right insurance(s) for your business - a few must-haves such as professional indemnity, public liability and employers’ liability insurance (if you have employees). Some others may be specific to your field, so do your research!

Step 2 – Client Contracts

Your client contract / T&Cs is the bread and butter of your business. You NEED to have one in place, as it covers everything from getting paid, dealing with nightmare clients, protecting your intellectual property and protecting you from getting sued.

It should at least cover your offering, payment terms, client obligations, liability and governing law (this is a whistlestop tour, there are some other specific elements to cover too).

Step 3 – Website Compliance

Not a very new business will have a website, but it may be on your cards. If you do create a business website, there are three legal elements you must have in place:

1. Terms of use
2. Privacy and cookies policy
3. Cookies consent banner.

Step 4 – Data Protection

GDPR has a reputation for being tricky, but it doesn’t HAVE to be (and it’s super important that you understand your obligations). This is quite an expansive area; here are some key points consider:

1. Registering with the ICO is key to compliance
2. Fully understand what personal data is
3. Understand who the data controller of your business is
4. Website compliance comes into play here too
5. Carry out an audit to establish what information you collect, whether that information is personal data, who has access to the data and where this information goes?
6. Make sure you understand the lawful basis of collecting and storing personal data
7. Make sure your email marketing processes are GDPR compliant
8. Prepare and distribute a data protection policy (essential if you have employees).

Step 5 – Brand Protection

We at Jamieson Law are passionate about this because you put so much time, energy and money into building your business and it’s important to protect that.

Protecting your intellectual property:

1. Copyright protection – protect your copyrightable work (e-books, videos etc) by putting copyright disclaimers and wording ‘telling the world’ you own it.
2. Trademark protection - protects the branding side of your business (name, logo or slogan). This is top trumps in the world of brand protection and is essential!

Step 6 – Service Providers and Staff

This step is a bit broader, relating to anybody who provides a service to your business - like employees, contractors or suppliers.

1. ALWAYS have a contract in place with any of the above.
2. If you’re a subcontractor or you use subcontractors, you need to comply with IR35.
3. NDAs and confidentiality – make sure any important information you’re sharing is protected, so it cannot be shared with others.
4. Employees – it is a legal requirement to have a contract with your employees. You also need to cover certain disability, equality and diversity policies. As you scale, putting this in an employee handbook would be a good idea.

If you’re bringing on PAYE staff, hiring an accountant will make your life much easier to deal with payroll, tax and pension obligations.

Step 7 – Getting Paid

Getting paid is (obviously) crucial for a growing business. Yes, it isn’t ALL about money, but how can we continue to grow if money isn’t coming in?! I’ve set out a specific payment follow-up process, which you can find in the checklist below. One of the most important factors is your client contract; it must have strong payment terms.

And that’s it! If you follow these steps, you’ll have your legal essentials in place, giving you a solid basis for climbing the ladder.

You can find a more in-depth outline of the framework within our free ‘Legal Leverage Start-Up Checklist’.

How can we contact you to find out more?

At Jamieson Law, we pride ourselves on helping small businesses understand their legal obligations and trying to make everything that bit less daunting. We’re here to help you wherever you are on your business journey.

If you feel like you could benefit from some 1-1 advice regarding covering your legal bases, please take advantage of our free 15-minute legal advice calls.