Running a Small Business – Why good advice pays for itself - Craddock Murray Nuemann Lawyers Sydney

Running a Small Business – Why good advice pays for itself
Article Related Articles Related Services Publish Date: Nov 01, 2009 THE PROBLEM As a small business owner, it’s not unusual to encounter situations when the burden of a legal problem or paperwork creates stress and a desire to quickly remove the issue. However, there are important benefits or savings you may be missing out on in seeing these situations as mere annoyances. These situations might take the form of: daily paperwork; threats of legal action; or negotiating and implementing business contracts. THE SOLUTION Receiving qualified and independent legal advice is key to running (and growing) your business smoothly. Successful business owners develop a working partnership with their solicitor and understand that a good solicitor can find a way to either reduce the scope of a legal problem or find ways to implement business ideas that you have but might be unsure of how to develop. EXAMPLES Sally the Sales Star Sally is the sole director of a telemarketing company in Brisbane. She often finds that a huge part of time is occupied in staff turnover and monitoring individual employee performance. This leaves her with little time to focus on growing her business and even less time to worry about formalities with running her company. She tends to delegate a lot of corporate paperwork to her accountant and happily signs statements to “get them out the door”. Sally would benefit from seeking some independent legal advice about her duties as a corporate director. These duties require her, among other things, to avoid delegating responsibilities to her accountant and to have a full understanding of the financial state of her business. By understanding these responsibilities, she could gain a different perspective on her company and find ways to improve it. Alternatively, she could obtain legal advice on improving her employment contracts and aligning her employees’ benefits to with what actually drives her company’s success. A qualified solicitor will ensure that these contracts comply with relevant employment legislation and can advise Sally on what she can legally do to work with problem employees. Bill the Builder Bill is a builder working in New South Wales. He undertook extensive building work for a developer on a new apartment block ten years ago and was very pleased with the results. Given the scale nature of project, he employed several sub-contractors to help him complete the job. As it was his first major project, he didn’t keep extensive records regarding his sub-contractors or any additional correspondence or documents he completed while finishing the building. Bill later receives a telephone call from the building body corporate manager. The manager complains about a developing crack in the basement car park ceiling and threatens to sue Bill. Bill might simply ignore the building manager or attempt to deal with the problem himself (he is not interested in spending money on a situation he sees as not being likely to do with his work). There are real risks that either course, while an easy decision to take in the short term, will create even larger problems later. If Bill were to seek the advice of a reputable construction solicitor, he would gain an outsider’s perspective on his situation. This could help him assess any real legal risks that might flow from his work on the apartment block and provide a professional means of dealing with the body corporate manager. If Bill has some legal liability, an offer to rectify the problem or settle before going to court will be easier to negotiate through a solicitor. Alternatively, Bill’s solicitor could advise him on any protection he may have under New South Wales laws that limit his liability. In any case, seeking legal advice early on will save Bill time and money in dealing with this issue. HOW TO GET ADVICE When choosing a solicitor or law firm, try to research the area first. Then take the time to choose a solicitor who understands your business and will work with you. A good lawyer will be able to explain an issue to you in simple English, so don’t feel intimidated in getting the explanation you need. Importantly, avoid choosing a solicitor solely on the basis of cost. Remember, you’re looking to form the same sort of partnership that you would with an accountant or a supplier. If you keep these things in mind, you find that the benefits from this relationship more than justify the price. Back A Brief Summary Of The Retail Leases ACT Craddock Murray Neumann Lawyers This article provides a summary overview of the main provisions of the Retail Leases Act (NSW) 1994 as they apply to commercial retail tenants and landlords. 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Being Sued Litigation is an unpleasant and stressful experience for a small business to go through. Most small business owners prefer to focus on what actually makes their business grow and operate, rather than dwelling on past mistakes or analysing small administrative details. Unfortunately, being sued can often be about very little details that happened in the heat of the moment. Buying a Business – Frequently Asked Questions Craddock Murray Neumann Lawyers Frequently asked questions in relation to buying a Business. Buying a property: the Australian Dream Claiming your piece of the ‘Australian Dream’ is becoming harder and, with more at stake than ever, buyers should be aware that it will not be always easy nor problem free. Your best defence in keeping the dream from becoming a nightmare is to simply arm yourself with the best possible information and advice. Closing your Company This article considers how you can close your company. There are two ways of doing this, applying to the Australian Securities and Investments Commission (ASIC) to voluntarily deregister the company; or a members' voluntary "winding up" (closing down) of a solvent company. COAG to implement retail tenancy reforms Craddock Murray Neumann Lawyers The Rudd Government has announced it will work with State and Territory counterparts to implement its response to the report of the Productivity Commission's inquiry into the market for retail tenancies. Commerce gives small businesses a leg up Craddock Murray Neumann Lawyers The Chambers of Commerce have greatly assisted small businesses around the country in the last month to help them cope in the global economic crisis. Commercial Leasing Craddock Murray Neumann Lawyers General information on commercial leases. Company Identity: Why It Matters Many people assume that one company is readily interchangeable with another when they are owned by the same person. 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It is important to understand the essential elements of a contract so that you can develop solid business arrangements. A solicitor can assist your business develop best practices. It is highly recommended that you consult a solicitor prior to signing any contracts so that you understand both your legal rights and your legal obligations. This is particularly the case with respect to long term agreements or where the contract involves the payment or receipt of large sums of money. Debt Collection Letters of Demand For small businesses, it may be either too time consuming to pursue outstanding debts or impractical to employ a collection agency (owing the size or circumstances of the debt). However, a simple strategy is to issue a formal letter of demand, which serves as both a final notice and a precursor to taking the matter to court. Debt Recovery, Bankruptcy, Company Insolvency and Director's Duties Craddock Murray Neumann Lawyers Information and basic questions and answers. 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In an increasingly interdependent world, it’s no longer a surprise that many Australian businesses conduct transactions with other businesses located internationally. Despite the fact that the sale of goods is conducted between businesses in different countries, the law of contracts still apply, but which laws? Insurance Basics Recent flooding in Queensland and other parts of Australia has highlighted the critical need for businesses to have adequate insurance coverage. Many small business owners have lost everything and will have an extremely difficult time rebuilding their operations. While assistance from the State and Commonwealth governments may help, it remains unclear if financial institutions will be lenient in enforcing their rights under finance agreements and lines of credit. In addition, many businesses have been caught out in not having sufficiently wide coverage for natural disasters and loss of stock. Is your business True Blue? "Made in Australia". "Product of Australia". "Australian Made". Does your business make these claims, and more importantly, can your business legally make these claims? Law reform to protect small businesses against predators - ACCC Craddock Murray Neumann Lawyers Australian Competition and Consumer Commission Chairman (ACCC) has announced small businesses will enjoy greater protection against predatory pricing and misuse of market power, following proposed legal reform. Making a Strategic Entry into Small Business Craddock Murray Neumann Lawyers In these difficult economic times, potential small business owners can face greater problems and barriers to starting their dream. From raising capital to securing customers, 2009 has been a challenging year. In this context it is important to make the most strategic and practical entry into the small business world. New Australian Credit Licensing Regime In July 2010, the Australian Securities and Investments Commission (ASIC) will assume responsibility for regulation of consumer credit under the National Consumer Credit Protection Act 2009 (Cth) (NCCPA). This initiative removes the States' jurisdiction over consumer credit and attempts to create a licensing system that broadly mirrors similar ASIC licensing regimes (such as Australian financial services licences). NSW leads way on occupational licensing Craddock Murray Neumann Lawyers Federal Small Business Minister, Craig Emerson, says a review by the NSW Government that could result in the removal of unnecessary occupational licences would make the State more attractive to qualified people from interstate. Parental Leave and Small Businesses Parental leave, whether paid or unpaid, maternity or paternity, is an important issue within small businesses. Especially in light of the Government Paid Parental Leave 2010 scheme. Privacy Exemptions for Small Business Recent events regarding the abuse of privacy in the UK, namely the News of the World scandal and its subsequent closure, have prompted a wider debate about privacy and privacy legislation in Australia. To date, The Privacy Act exempts businesses with an annual turnover of $3 million or less. Telecommunications service providers, however, do have obligations under the Telecommunications Act, with regards to the use and disclosure of information, but this does not address issues such as collection and storage of personal information. In general, small businesses, are exempt. Privacy Exemptions for Small Business Recent events regarding the abuse of privacy in the UK, namely the News of the World scandal and its subsequent closure, have prompted a wider debate about privacy and privacy legislation in Australia. To date, The Privacy Act exempts businesses with an annual turnover of $3 million or less. Telecommunications service providers, however, do have obligations under the Telecommunications Act, with regards to the use and disclosure of information, but this does not address issues such as collection and storage of personal information. In general, small businesses, are exempt. Privacy Exemptions for Small Business Recent events regarding the abuse of privacy in the UK, namely the News of the World scandal and its subsequent closure, have prompted a wider debate about privacy and privacy legislation in Australia. To date, The Privacy Act exempts businesses with an annual turnover of $3 million or less. Telecommunications service providers, however, do have obligations under the Telecommunications Act, with regards to the use and disclosure of information, but this does not address issues such as collection and storage of personal information. In general, small businesses, are exempt. Reforms Ensure the Price is Right The ACCC is urging businesses to make customers aware of the total cost of goods and services, following amendments to section 53C of the Trade Practices Act 1974. Retail tenancy shake-up to address small business concerns Craddock Murray Neumann Lawyers A new discussion paper has tackled major concerns in the retail tenancy market amongst small and medium businesses. Running a Small Business – Why good advice pays for itself As a small business owner, it’s not unusual to encounter situations when the burden of a legal problem or paperwork creates stress and a desire to quickly remove the issue. However, there are important benefits or savings you may be missing out on in seeing these situations as mere annoyances. Security for Costs Craddock Murray Neumann Lawyers The general rule is that everyone should be able to enforce their rights in the Courts – poverty should be no bar to justice. 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Small business conditions moderate, reforms imminent Craddock Murray Neumann Lawyers Small business conditions have remained moderate while labour costs have risen, according to a recent survey by the Australia Chamber of Commerce and Industry (ACCI). Small business squeezed in credit crunch Craddock Murray Neumann Lawyers As the global financial crisis continues to take its toll, The Australian Chamber of Commerce and Industry (ACCI) expressed concern at the availability of credit to small businesses. Social Media and your Employees This article focuses on the potential risks (and benefits) of social media. The law in this field is unclear, although this article attempts to present social media as merely a more developed form of communication over the Internet. Social Networking in Business Many businesses including small businesses have embraced social networking sites as a way to market their products and services. Facebook fan pages are often a popular choice, enabling members of the public to post comments about a product or service. Strata Levies: Options for Recovery Craddock Murray Neumann Lawyers Each lot owner in a strata plan is required to pay levies (usually due quarterly) which make up the administrative fund and sinking fund of the strata scheme. Tax Time Record Keeping With the end of the financial year, now is the time for many people to start afresh and get their businesses in order. As part of completing an end of year return, it is timely to consider your record keeping obligations under Australia's tax laws. The Australian Chamber of Commerce and Industry identifies hidden business costs in proposed Parental Leave Scheme Craddock Murray Neumann Lawyers The Australian Chamber of Commerce and Industry ("the ACCI") has told the Productivity Commission that it needs to revise the proposed paid parental leave scheme to take direct costs off employers and small business. The Big Haggle or how to negotiate a commercial lease Craddock Murray Neumann Lawyers Information on things to consider when negotiating a commercial lease agreement. The modern approach to contract interpretation Khaled Metlej Jireh International Pty Ltd v Western Export Services [2011] NSWCA 137. The requirements for creating a valid e-commerce contract In recent years, online shopping has exploded in popularity, with many Australians taking advantage of the strong local dollar and the ease of making purchases online. As a result of consumers doing more shopping on the internet, small businesses may have begun to consider the viability of establishing an e-commerce presence. And as new technologies change the way people purchase products, it is essential that the law adapts to the changing environment by enacting legislation that both encourages businesses to adopt an e-commerce strategy, whilst still protecting consumers. As a result, a uniform legislative regime operates across all Australian states and territories, which applies to both electronic and face-to-face commercial transactions, equally. Unions strike out against unfair dismissal laws Craddock Murray Neumann Lawyers Unions have struck out against the revised unfair dismissal laws announced by Workplace Relations Minister, Julia Gillard, under the new Forward with Fairness laws taking effect next July. When is the Price Right: Predatory Pricing and Small Businesses Predatory pricing is unlawful under s 46(1) of the Trade Practices Act 1974. This prohibits businesses that have substantial market power from using that power to eliminate or damage a competitor. It also prohibits preventing a person from entering a market, or deterring or preventing a person from engaging in competitive conduct in a market. Why business owners must supply goods of acceptable quality and fit for a disclosed purpose Small businesses should be aware, that with the introduction of the Australian Consumer Law (the ACL) affords the public a broader range of protections, as well as requiring both corporations and “persons” to provide goods and services which are of a requisite standard. The ACL has replaced the Trade Practices Act 1974 (the TPA), and although the new Act mirrors many of the provisions under the TPA, the ACL has also included implied conditions of quality and fitness in relation to consumer transactions and now enjoy statutory guarantees under the ACL. Why Choose Bankruptcy Craddock Murray Neumann Lawyers brief list of advantages and disadvantages for both Debtors and Creditors. Why Choose Bankruptcy? Craddock Murray Neumann Lawyers A brief list of advantages and disadvantages for both Debtors and Creditors. Working with Contracts For most small businesses, contracts are part of everyday life. Whether selling goods, purchasing materials, employing staff, negotiating and signing on arrangements with customers, clients and providers, it is important to understand contracts and their implications for establishing best practice and solid business agreements. It is imperative to become familiar with the essentials of contracts, and to consult your solicitor before signing anything. You do not have to be rude or violent to collect a debt People often think of debt collectors as professional bullies or “stand-over” men who break debtor’s arms to make them pay. Whilst these methods might occasionally be effective, they are usually highly illegal, and no self-respecting business would ever want to be associated with these sorts of tactics. Business & Commercial Law Tweet		Search Book An Appointment Make an Enquiry A member of our legal team will contact you as soon as possible * * * Brief description of enquiry: Type the characters below: * Refresh Image

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