Starting your own business can be filled with many legal pitfalls which may damage your business before it even starts. Not only this, but Black-owned startups may often face a unique set of challenges that intersect with broader systemic issues. This is often due to the negative impacts of unconscious bias, lack of diversity among investors, and smaller professional networks. To help you navigate these issues and protect your business, we’ve put together this legal roadmap to help with your new startup.
Choosing the right business structure
Before you begin trading, you’ll need to decide what type of business you want to set up. These each have different pros and cons, including liability, taxation, and administrative obligations.
To give your business the greatest chances of success, you’ll need to understand the differences and choose the option that aligns with your startup’s goal and risk tolerance. If you’re unsure about which is the best choice, you should contact a full service law firm, they’ll be able to provide you with high-quality, professional guidance.
Navigating regulatory compliance and intellectual property protection
Ensuring your compliance with industry regulations and intellectual property is critical for startups,
When trying to safeguard your own IP, you’ll want to register your trademarks, patents, and designs with the Intellectual Property Office. This will ensure your ideas are protected if someone steals them, and may allow you to claim damages in court for stolen ideas.
Copyright doesn’t need to be registered first, as it is automatically given when a work is created. However, registering your work can create additional safety when protecting your IP.
Securing funding and understanding investor relations
As a startup, access to capital is essential for growth. Since this can be difficult to generate yourself, you may want to explore the various funding options available.
Venture Capital
Venture Capital firms invest other people’s money into various businesses in order to make a profit.
Angel Investors
Similar to Venture Capital, an Angel Investor is usually an entrepreneur who invests their own money into a business in exchange for a small stake (typically between 10-25%).
Crowdfunding
The rise of websites like Kickstarter and Crowdfunder.co.uk has permitted businesses and individuals alike to raise money from a large number of people. Typically, the investors prepurchase specific products or services, which funds the business’ production.
Government Grants
There’s a wide range of government grants for small to medium UK businesses, which can be perfect for getting your business up and running.
Implementing robust employment practices
As your startup grows, you’ll likely need to build a team. This can offer several challenges, however, including writing the job description, advertising the role, creating an employment contract, and abiding by employment laws.
You’ll also need to establish workplace policies that promote diversity and inclusion, alongside understanding employee rights. Doing this successfully will put you on the path to creating a positive work environment, which is pivotal to attracting and retaining talent.
