Running their own business is a dream to many, and when they achieve it, there’s no better feeling. But thinking of owning a business and actually owning one are two different things; once you establish your business, you will find yourself facing many problems at once.
Simply put, the world becomes a little more complicated if you are a business owner, especially if you have a small business that cannot afford to hire expensive professionals for guidance. Here are some legal majors that you might have to consider as a small business.
Shikana Group is a legal management consulting firm in Tanzania. They have expert lawyers who have worked in the field for several years and have all the knowledge and experience you need for your business advisory.
1. Trademark
One of the most common legal issues that small businesses come across is trademarks. Whether they have taken someone’s trademark or some other company has taken theirs, there’s always either of these issues regarding trademarks that make small businesses have a hard time. If you are a small business owner and you haven’t decided on the name of your business yet, you must do thorough research before finalizing your business name.
It is a possibility that the name you might be thinking of already exists, and if you go for it without proper research, you might be caught in legal issues afterward. Once you have decided on the name, you must ensure that it stays safe; you need to register it as your trademark so no other company can use it in the future. These two majors will help you avoid any legal matters regarding your trademark.
2. Licensing
Licensing is another common issue that small businesses suffer from. You must make sure that you have the permission of your local government authorities before you start operating. Otherwise, you might have to pay penalties that could be avoided. The cost of getting a license may vary according to the play where you operate, but the need for it stays constant, and you cannot avoid it.
3. Shareholder’s Agreement
If your business has more than one shareholder, it is best that you make agreements or contracts. One day if your business dissolves or is split, you will need arrangements to sort things out without any legal issues. However, if you don’t make any agreement with the shareholders, legal battles are bound to arise; even if you are on good terms with your shareholders, you can never be sure that nothing will go wrong with this partnership.
4. Employee Termination
This issue has been seen a lot with businesses where they don’t clarify employee termination policy in the documents and face legal problems afterward. Suppose you hire an employee that you deemed qualified and professional, but they turn out to be the complete opposite of that, and you think keeping them will cause damage to your business; if you fire them without following a proper employee termination procedure, it will cause legal issues for your business. To avoid any such situation, it is best to state the policies in the employee manual and disciplinary actions.
5. Overtime Dispute
Make overtime rules for all employees to follow and make sure that everyone practices compliance. It is also advised that you should approve all the overtime beforehand to avoid any problems in the future. It will help you manage your finances better and keep legal trouble away from your business.
6. Settlement
Jumping into a lawsuit cannot always be your best option. The procedures are hectic, and it keeps adding the fees to your expenses which does no good to your business. If you think that an issue can be resolved without going on with the lawsuit, try to settle things with the other party. If a settlement is possible, it will save you a lot of time and money.
If you are looking for a legal management consulting firm in Tanzania, contact Shikana Group. Their professional lawyers will help you keep all the legal matters in check at the most reasonable cost.