Starting a successful business from scratch

PART TWO

Saelese Haynes

Dear AFETT,

I spent several years working as an executive assistant for companies in the full gamut from micro to large businesses.

The company that I work for currently is experiencing some severe legal challenges and I have been privy to discussions that it may be closing its doors.

I have decided to "take in front" and I plan to open my own business to provide administrative services.

However, having worked in various businesses, and having the experience of occupying different roles, I am truly fearful of starting when I think of all of the things that I will have to do as a team of one (just me). Plus, this situation in which my current employer is going under because of legal problems is weighing heavily on my mind.

How can I prioritise the most important requirements to operate a business legally and soundly so that I can have a good chance at entrepreneurial success?

Captain Catherine

Dear Captain Catherine,

In last week’s column, we shared our thoughts in response to your query.

In that segment, we addressed some of the legal issues relating to business formation, notes on compliance and governance for small businesses, financial matters, regulating and shaping your business identity, as well as issues relating to onboarding new staff in your enterprise.

This week, we continue our suggestions by providing the rest of our top ten things to review when starting up a new business:

Intellectual property rights

Protecting the Intellectual property (IP) that you generate in your business is crucial. Trademarks, copyright, trade secrets and patents can be essential components of the successful entrepreneur’s toolkit for safeguarding a business's unique ideas as developed, its products or services, and/or its brand identity.

IP protection is both an initial activity and an ongoing process. Where you have a unique and strong brand identity, it is even likely that clients or supporters of your brand will inform you of potential IP infringement.

It is crucial that you review your IP protection strategies periodically and adapt to changing circumstances in your industry to keep your IP secure. If you intend to do collaborate with third parties, it is a good idea to develop a brand kit that addresses permitted and non-permitted use of your IP that will accompany your contract for those partnerships.

Audits

Once you have started your business, regular audits of operations are essential. Those audits can be formal or informal.

People are usually most familiar with financial audits. However, audits can be carried out in various areas of operations. Many businesses have started doing regular legal audits to identify gaps in the compliance, governance and risk aspects of their operations.

Contracts and agreements

Contracts are the foundation of any business relationship, whether with customers, suppliers, or other stakeholders.

Ensure that you have well-drafted contracts in place to protect your business interests and prevent disputes, and that your contract terms are properly incorporated in your process of doing business. In many cases, written terms in a contract are shared with customers/ clients after their purchase, which is usually not an effective method of incorporation.

Consider consulting a legal professional to create or review the documents and your sales process.

Data protection and privacy

With the increasing focus on data protection and privacy globally, it is essential to understand and comply with relevant data-privacy laws applicable to your business.

You mentioned that you will be opening a business providing administrative services, so the storage and organisation of client data is likely to be especially important for you.

Exit strategy and future-proofing

An essential part of starting from a position of strength is to begin with the end in mind. It is always wise to plan for the future, and in business both exit strategies and succession plans are vital.

Your plan for an exit strategy can include selling the business as a going concern, taking the business public and selling shares in it and/or passing it on to the next generation.

In any case, part of your succession strategies should include building capacities and competencies within your business.

Make it a priority to stay informed about changes in laws and regulations that affect your environment. It is important to keep on top of industry trends with continuous education and development.

In conclusion, prioritising legal considerations when starting up is crucial for long-term success.

By addressing these key items, you will not only safeguard your business but also lay a strong foundation for future growth.

Despite your sharing that you are "starting from scratch," your willingness to learn is evident. Stay focused on your goals, take each item step by step and you have the potential to build a thriving enterprise. We look forward to hearing great things from you!

This article was submitted by the Association of Female Executives of TT (AFETT).

AFETT is a non-profit organisation formed in 2002 with the goal of bringing together professional women and engaging in networking opportunities, training and business development.