Three steps to crank a start up business

The three most important things for a business start up are successful marketing, getting accountancy matters in order and getting legal matters right.

This advice comes from Laura Rhodes, partner of Eldridges. Laura has practised as a solicitor for 11 years. In recent years, she has specialised in commercial conveyancing.

“It is a challenge, working with a range of business people, from coffee-shop owners, to people taking on industrial units or office spaces. There is a lot that can go wrong. Some people try to negotiate lease terms by themselves, which can make it very expensive in the long run. 

“Either buying a business premises or taking on an existing lease can be daunting and it is important to ensure that you are advised on the Landlord and Tenant Act 1954 and whether or not the act is included or excluded from the lease,” said Laura. 

“From the tenant’s perspective, if they are looking to have the automatic option of being able to remain in occupation of the commercial property on expiry of the lease, lease negotiations will focus on the lease being protected under the Landlord and Tenant Act 1954 and what is known as ‘security of tenure’ being included, that is a rebuttable right to remain in occupation even though their lease has come to an end by effluxion of time. The good thing with this is that it also makes the lease more desirable if the lease needs to be assigned to a third party. 

“If someone starts up a business and intends to employ staff, they will also need to think about employment contracts and all the usual procedures which must be in place, such as health and safety, grievance and disciplinary procedures. If they are taking over an established business, then there are also issues with transferring employees to the new business. 

“The person setting up a business will also need to be advised as to whether or not to become a partnership or a limited company. With a limited company, there is limited liability for the directors of the business and they are likely to pay less tax than a sole trader.” 

Eldridges has two solicitors specialising in commercial conveyancing, Laura, who is based in Newport, and Jason Van Der Helstraete, in the Freshwater office. 

Summary: 

The three most important things for a business start up are successful marketing, getting accountancy matters in order and getting legal matters right.