The Department for Business, Energy and Industrial Strategy (BEIS) estimates that small businesses constitute over 99% of the UK's business population. Many of these businesses undoubtedly operate with a smaller budget than larger enterprises. As such, their owners understandably always seek clever ways to reduce costs and save money. Small business owners typically rely on tactics like going paperless, outsourcing, and negotiating with vendors to reduce their company's expenses. However, they often overlook how instrumental an attorney's assistance can be in their efforts to save their enterprises' cash. You may consider these 4 possible ways a lawyer can save your small business money.
By Team Savant
Image: Mateus Campos Felipe
1. Selecting the Right Legal Structure
Reboot SEO Agency estimates that a whopping 835,494 new businesses were registered in the UK during 2020 alone because the pandemic made people more entrepreneurial. One of the most consequential decisions you will have to make when registering your company is to decide what kind of legal structure it will operate under. Many business experts agree that this decision isn't one you should take lightly since each option has unique pros and cons that can affect your company in various ways, including financially. Thankfully, a lawyer, one of your business's key advisors, can help you understand which legal structure will benefit you the most by lowering your exposure to liability and minimizing taxes.
2. Drafting And Reviewing Contracts
Written agreements will govern most of your business operations, so it is prudent to get them right to prevent wasting many. If you are a small business owner with no real knowledge of business law, personally drafting your contracts is a bad idea. Writing contracts require specialised legal knowledge, so hiring a business lawyer is the best way to guarantee that all your agreements are completely compliant and legally binding. If you have drafted or signed contracts without an attorney's help, asking one to review these agreements can help you identify terms that aren't in your best interest. This way, you can save and even recover money illegally obtained from you. For instance, many UK businesses' energy contracts have been mis-sold, making them entitled to compensation. An expert lawyer can identify this mis-selling in your contracts and help you with mis-sold energy claims, so keep this in mind.
3. Employment Laws
It is no secret that various laws and regulations govern employee-employer relationships. As such, your lawyer can help you establish policies and procedures to keep your business out of trouble before you even hire your first worker. This lawyer can establish the employment practices for vacation time, offering benefits, hiring, firing, and other matters governed by governmental laws. Therefore, your business will follow all the right employment laws, avoiding lawsuits or costly penalties from government agencies.
4. Protection From Litigation
Every business is exposed to liability, so it is no surprise that a single lawsuit can wipe out an entire company. However, hiring an outside lawyer can help protect your company from litigation, ensuring you don't live in fear as an entrepreneur. For instance, an attorney can help your business navigate out-of-court settlements, so your lawsuits never have to see the inside of a courtroom. Also, a skilled lawyer can represent your company when it faces different types of lawsuits and helps you avoid costly penalties with great defence.