If you’re about to start your own business, you’ll need to make sure you have the right legal documents. While this may seem like a bit of a bind, having the right documents to hand can help your business succeed.
Below you will find details of some of the most important legal documents every business needs:
A Business Plan
One of the first documents you’ll need is a business plan. A business plan can help you to get the funding you need. This is because it outlines the products or services you’ll provide, your sales and marketing strategy, and your target market, among other things.
Banks and other financial institutions will not lend you any money or invest in your business if you do not have a business plan. Make sure you have a full and complete business plan that you can show to anyone who needs to see it. Having a plan to hand will also help you to have a clear vision of your business.
A Buy/Sell Agreement
Many small businesses and startups fail to set up a buy/sell agreement. However, this is a crucial piece of documentation that can help your business no end. This type of agreement sets up a lot of arrangements in advance. It can help you to understand what will happen to your business if a partner was to leave or pass away. It can also help to understand whether you will need to sell their half of the business or if someone else will take their place.
No matter what type of business you plan to set up you will need business insurance. You’ll need to insure your premises and all of the tools (Computers, machines, etc) that you use. You’ll need to make sure you have enough cover so that if something should go wrong you will be compensated for it.
Please note, that some prospective financial institutions will not touch you unless you have the right insurance. The good news is there are many different types of business insurance out there so you should find some that are right for you.
An Employment Agreement
While you might not have any employees just yet, there’s always a chance you’ll need someone soon. When someone works for you they will need to have an employment agreement or contract. If you would prefer not to have an agreement or contract please note, there can be some misunderstanding as to what their role is.
A written agreement can help to protect you and your employee against future conflict. It can detail their salary, any benefits, working hours, their position, their responsibilities, and a termination agreement or notice period. It’s worth setting up an agreement even if you’re hiring someone you’ve worked with before. You both need to know where you stand and what is expected of you.
Having the above legal agreements to hand can help you to move forward with your business, stay protected, and even get the funding you need.