6 tips to start the business year on top

SAELESE HAYNES

Dear AFETT,

I have finally made it past my first year in business, and I’m celebrating my company’s anniversary.

Even though I survived the first year, and it is a big milestone for me, I’m quite confused.

I attended an entrepreneurship masterclass last year and realised that starting up a business involves many layers, including the legal ones. Every time I think I’m learning and growing, I realise that there are so many things that I do not know. It can get quite overwhelming.

I’m slowly learning to deal with some of those additional layers and obligations to keep my business on the right track.

What are some of the things that I can do to start my new year in business right?

Dear business owner,

Congratulations on reaching and passing this significant milestone in your business journey.

Surviving the first year is quite a commendable achievement, and now, as you embark on your second business year, it sounds like it might be time to take off the training wheels.

It is natural to feel a bit overwhelmed by the challenges ahead.

This is not legal advice, but to help you navigate this crucial phase, here are some things you can do to kick off your new year in business in a position of strength:

Analyse your year-in-review

During the first year in business, it is normal to have held your first organisational meeting (while this is a requirement under the Companies Act, the act does not mandate when it must be done).

At the organisational meeting, if you have not already done so, you can consider confirming the scope and expectations of the officers to lead the company (secretary, directors); adopting by-laws and a company seal/ stamp; appointing auditors, attorneys-at-law, bankers and any other required professionals; as well as outlining procedures for issuing shares in the company. Your analysis of your first year in review can guide many of these decisions.

Plan your compliance calendar for the next year

Keeping on top of business governance and compliance issues is crucial, as missing deadlines can lead to significant fines, lost opportunities and unnecessary stress. Make a note of key deadlines, whether these are monthly, quarterly or annually.

The specific compliance obligations for your business will depend on your circumstances, but a few general obligations to note would be dates for filing annual and beneficial ownership returns with the company registry, quarter days for the remittance of taxes, dates for filing returns with the Board of Inland Revenue, National Insurance (if you are an employer), etc. Apart from statutory obligations, you can also map out dates for expiry/ renewal of contracts, insurances and other important dates that should be diarised.

Update your business plan

If you have not revisited your business plan since your company’s inception, now is the perfect time.

Update the plan taking into consideration and applying your newfound knowledge and experiences, with a close review of the things that went right in the last period, as well as any gaps you identified during the course of the previous year.

Contracts, contracts, contracts

A good way to strengthen your foundation is to ensure your legal business framework is solid and provides protection in each aspect of your operations.

Review and update your contracts and business policies, in particular, paying attention to situations where actual or potential disputes may have arisen in your business practices.

For instance, did you have clients who had contrary interpretations of a particular term in your contracts?

Consider revisiting the language so that the intention and meaning are clearer.

You can also consider consulting a legal professional to address potential gaps in your dealings with third parties (whether those are customers, suppliers, service providers or employees).

Review processes from an end-to-end flow perspective

Take a closer look at each of the tools and structures that you employ in your business (whether those are software or relationships with third-party service providers).

Consider developing standard operating practices that spell out each of your business processes.

If you use a website, ensure your website copyright notice is updated.

Evaluate compliance

Consider undertaking or preparing for a legal audit, which can help you identify potential legal risks and liabilities within the business, including many that have been mentioned here.

A legal audit involves a comprehensive review of a company's documents, policies, procedures and compliance with relevant laws and regulations and will help you to ensure you have not missed any crucial steps or undertakings.

In summary, it is prudent to reflect on your first business year to establish and distinguish what went right from what went not so well.

Carve out some time to reflect on your experiences and lessons learned during the first year. Identify what worked well and areas where improvements can be made.

This self-assessment will provide valuable insights for refining your business strategies in the coming year and can help you prepare for a legal audit of your business.

If you need additional support, consider outsourcing relevant and skilled professionals.

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.

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