Any Entrepreneurs who want to be successful in their respective field need to have knowledge in terms of technology, their competitors and the strategies followed them, legal issues faced in their business areas and also economic aspects of the business.
Here are most common five legal mistakes an Entrepreneur should avoid which are as follows;
- Registration of the Company: The initial step of a businessman to enter into the field is to register the company with a suitable company name along with the logo or trademark in which they are about to start the trade of business. Without registration, a company cannot enjoy the government welfare schemes which help to promote their business. So registration is necessary to step to avoid further confusions arises in the business.
- Following employment practices: After setting up the business, recruiting suitable people for the right job is essential and also a crucial step to take your business to the next level. A clear employment practice is to be followed which includes the terms and conditions of the employment, availing leave and other benefits, the salary and wages of the employees, performance appraisal and promotional offers etc. This helps to avoid unnecessary union problems and so on. If there is doubt in defining the number of wages to be paid, one can check out recovermywages for any other clarifications.
- Patent & Intellectual rights: If the business entity comprises of selling unique products which have to be patented on the name of the owner or the company without fail so that others cannot duplicate their products.
- Documentation of Agreements and contracts: There should be clear documentation procedures with the agreement terms and contracts along with the third parties. This enables the entrepreneur to focus on various aspects and helps to plan accordingly. If Partnership exists, the ratio of investment and profit sharing among the partners are clearly defined and declared in the documentation.
- Exit strategy: If any of the partners are not willing to continue their services in the business, he should move on freely without any complicated procedures. The other partners should be able to settle the person who wants to exit from the partnerships.