Joe White is co-founder and COO of website builder
Moonfruit. He's grown the business across a decade to an
international company with Silicon-Valley-based backing. But White
has had his fair share of headaches along the way. Here are his
tips for small businesses looking to avoid legal hot
water.
Running a small business in London can be a battle at the best
of times, particularly in terms of managing your own time as it is
one of the most valuable resources in the company. You need things
done correctly, you can't do them all yourself, and you don't want
to be distracted by things you shouldn't have to worry about.
I should know, as COO/CFO of the number one hosted website
builder in the UK, Moonfruit.com. We're a DIY website builder for
consumers and small businesses to share their passions online,
based in central London.
Legislation affecting your business can seem like one of those
extra things you just shouldn't have to worry about, but it is real
and does matter. Some of it is a real pain, some of it is good
discipline with real benefits.
The main kinds of legislation that affect the running of your
business are:
- Employment
law: essentially, this concerns the relationship between
you and your employees. From payment rights to varying types of
discrimination.
- Consumer protection: this looks to ensure that
consumers are treated fairly by businesses and to ensure product
quality is satisfactory.
- Tax and regulations: anything from payroll taxes,
VAT and corporation tax, to filing accounts and statutory
documents.
It's your responsibility as a business owner to make sure you
take notice of all these things. But this doesn't mean you have to
do it all yourself.
My first piece of advice would be to make sure you have an
accountant who is looking out for the day to day stuff,
particularly payroll and taxes. The revenue aren't particularly
sympathetic to people who pay incorrect tax and a competent
accountant will make sure you do. It is an additonal outgoing but -
trust me - accountants are worth their weight in gold.
On the legal and employment side of things, treat people fairly,
with respect, and you'll be okay in most cases. If you find
yourself in a tricky situation, then take advice. There are several
business services that will offer standard contracts and process
documents (e.g. dismissal), so you can use these to save money. Smarta offers a business
software bundle that includes legal and accounting software, so
that can be helpful here.
Most importantly, don't be afraid to do something for fear of
regulation or concern that it's all too complicated. Seek to do
things the right way and take advice if you're unsure, but don't
get paralysed. Most government agencies want you to succeed and
will work with you to help you comply, even if it's tidying up
after the event!
Some laws can even lead to a benefit for your business.
Understanding that EU law requires us to give customers a 60 day
right of refund for digital purchases has allowed us to promote
this effective 60 day money back guarantee to our customers - to
their delight! So it's not all bad :-)
Further reading:
FREE
Business Briefing: How to interview
The Comply or
Die ebook