Well established businesses and more recent ventures both need to remember the essentials when embarking on any new project. It is easy to be swept along in the adrenalin rush when the plans are being put in to place, but take time to think about the impact on your future if it is not carefully thought out beforehand.
Is it stand alone or connected?
You may want the new entity to be a stand alone limited company or firm, rather than part of a group. The decision will normally be led by the tax effect of the structure, but you may also be considering where the liability will fall. Protecting a valuable part of a business may make it important to have some distance from other aspects of the group.
Same parties or new faces?
There may be very good reasons to look at putting existing members of your team in to new positions of authority. Build on their strengths and widen your horizons. Human resources are probably the most valuable part of any business and managing expectations is key.
Online or traditional?
Will the business be carried on largely online? If so, who is to own the intellectual property, what are the problems associated with Social Media and what can be done about it?
Do you need to have meetings with staff to get their views on the introduction of new policies to protect the business?
Do you need web terms to protect against liability and to protect your assets?
Regulate the outcomes.
Always think about the structure and the regulation of the parties involved before you put everything in public view. The shareholders agreement will provide the means to deal with the difficult situations that can arise in the future if there is an unexpected illness of a senior member, a death or even just a major difference of opinion.
Without an agreement to regulate the situation you could end up with the Court as your only option and it is a costly way to handle any situation.
Devine Law prides itself on being able to identify the issues that will be most important to ensure the success of a business and if you need good advice, sound policies and clear corporate governance, our experts can help you at all stages.