Legal Mistakes That Might Make You Lose Your Business

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legal mistakes in business

A lot of SMEs and Start-ups concentrate more on building their businesses while neglecting the legal issues. From my discussions with Entrepreneurs and Start-ups, I realise that there are legal mistakes that are common to most of them. I want to point out these common mistakes that can be easily avoided.

 

Failure to register your business early This is one of the key problems SMEs have. A lot of SMEs delve into their business without even thinking of registering them. This has adverse effects on your business. I have encountered Entrepreneurs who have lost their brands because they did not register their business at the beginning of the business. I always advise that you seek and get proper legal advice at the onset to avoid making this mistake. Register your business today and avoid losing your brand.

 

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Wrong choice of corporate structure: I have earlier on done some detailed discussions on various types of corporate structures. In order to avoid choosing the wrong business entity, please consult a Business/Corporate Lawyer to guide you. This is why we have this kind of forum to help you. If you want to grow your business to a large size, please register a Company. Business Name is only suitable for very small businesses which, in most cases, are managed by one person. That is why it is most times called Sole Proprietorship or One-man business. Incorporation of Company affords you great opportunities for business growth.

 

Failure to protect your Intellectual Property: This is an area that is growing and Entrepreneurs should take the opportunity. Copyright, Trademark, Patent and Industrial Design are valuable assets of your business and yield a lot of income to your business. You can engage a Lawyer to register your Intellectual Property and protect it from infringement.

 

Also read:  How Your Small Business Can Compete Against Large Corporations

If you need further guidance on how to choose the right structure for your business, please feel free to drop your request in the comment box below to get it across our Legal adviser.

 

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