Starting off your career in any industry is tough and challenging, especially now with the world at a crossroads and when things are full of uncertainty. Establishing one’s one business and being your own boss is even harder. There is not a lot to hope for in terms of easy and straightforward employment when so many factors are affecting the world right now. Finding work has never been easy, let alone in the current economy. However, it is hardly impossible as many people are still finding ways to be successful. Not only that, there are those who have made themselves parts of more than one industry, more than one career, or more than a single investment.
Back in the day, the word for such an individual was a businessman. Since they were almost exclusively men, nobody questioned this term. Then came the term businesswoman to equal the rights and gender roles as more and more women started doing the same. Fast forward to the 21st century, and the word you are looking for is an entrepreneur.
While these are not really mutually interchangeable, being an entrepreneur is arguably better and it implies more than being a business person. However, it is also harder to do because it takes so many steps and there are many bumps along the way. In this article, we talk about a single type of challenge all entrepreneurs face, and that is the legal kind. Read on to learn about the most common legal challenges a new entrepreneur will likely face and be sure to click here about it.
Starting as an Entrepreneur
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So what does being an entrepreneur even mean and who can be considered one? More importantly, how do you become a new entrepreneur? There is no school for it. It is a title or a career that can be so diverse and unique, so how does one start? Well, first of all, you will need your own business. The first business is always the hardest as you are doing everything from the ground up.
When you get on your feet and start to make a living off of it, you can branch out to other sectors and use the earnings from the first business to establish the next. Easy peasy, right? Wrong. Doing it for the first time is the absolute hardest because there are many ways to fail and not a lot to fall back on. This is also why a lot of people seek professional financial advice. Failing in your second and third business is easier because you still have those that came before it. With the first one though, there is little wiggle room or room for error, especially with the legal challenges that are ahead. Consider the following legal matters before you dive any deeper into the entrepreneurship game.
1. Licensing
One of the most common problems every new entrepreneur faces comes in the form of licensing. Unless you are in accordance with everything your government, especially the local branch, asks of small businesses, you will face problems. There are many rules, laws, and regulations regarding the license to operate and sell products or offer services. And of course, the fees and fines are high.
However, they are easy to avoid if you are not trying to bend the rules. Complying is the only thing you can or should do, so make sure you contact your government licensing agency, your accountant, and your lawyer, and get everyone on the same page. Once you get the license, everything else becomes easy.
2. Trademarking
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Where there are licensing problems and challenges, trademarks are quick to follow. This is another very common legal issue that small, first-time entrepreneurs and businesses face. Naming and renaming your business, product, or service, as well as coming up with logos and slogans can be a minefield if you do not carry out enough research. If you thought of the name rather quickly and without any issue, somebody else might have done the same before you and registered it as a trademark. This can lead to trademark opposition proceedings, which can be a big and unexpected hit on your budget.
There could be businesses of the same name but in different industries too. You do not want trademark infringement right out of the gate as it is a legal issue difficult to recover from at such an early stage. Honest mistake or not, it is a lot of hot water to find yourself in.
3. Employee Hires and Terminations
You have to be wary of how you are conducting your terminations. Many businesses experience legal problems of this nature and it can be something impossible to prepare for. Imagine the scenario: you hire somebody who seemed qualified and in every way ideal for the job. However, they soon prove to be anything but, nothing more than a liability that loses you money. Even if they are doing their job well, they may not fit well with the rest of the employees or the culture of the business.
You want to terminate them but they have not done anything to deserve it. Terminating them without much reason can put you in a legal battle against your former employee. Unless they have done something that is not allowed, they cannot be fired. The only thing you could do is document their mistakes and eventually fire them, but that takes time. It would be much better to talk to them and tell them what may be the problem.
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4. Overtime Troubles
Rules regarding overtime work should be clear and visible to all. Better yet, they should be a part of the contract every employee signs. Otherwise, it is hard to prove and calculate the overtime work and there can be problems when the payout period ends. Protecting yourself and your small business from legal troubles coming from something seemingly easy to deal with is prevalent.
Financial control and transparency are crucial for any business, let alone your first one on the road to becoming a successful entrepreneur. Let it be known how much every overtime hour is worth, whether or not there is a possibility to work a lot more hours than others, and how it is all being calculated towards payment.
