Start Your Business On A Positive Note By Getting All Fundamental Documents In Place
Every year thousands of people open up a business. However, only a few of them make sure that all the fundamental and legal documents needed are in place before they startup. The right documents in place before you start will help your business to be successful in the future. Below are few important documents you should prepare before you start your business.
Business Plan
A business plan will not only help you set the path of what you need to do to achieve your goals but can also help you in getting some funds to get started. If you are looking at attracting some investment for your investment, then a business plan will help you get it. The three most basic things that should be covered in your business plan are the problems you want to solve for your customers, how you plan to do it, and why customers should pick your product/service as their best choice. When these basic elements are clear it will give you a head start on what you need to do and how you will approach your customers. It will allow you to hire the right people to manage the operations, finalize product details and also make you aware of potential risks that could come your way. This documentation may take time but it will play a vital role in the future of your business.
Set Up LLC
When you are setting up your business officially you will come across many options to do so like a sole proprietorship, partnership, and so on. Your best choice is to set up your business as a limited liability company/LLC. As you learn more about it, you will understand that it will be a good option as your liability is limited to the maximum possible level. It can have a substantial impact on cash flow and has tax advantages that can help you make your LLC business more beneficial. There are state laws that establish the stand operation procedures that you must abide by. You will have an operating agreement and can customize many clauses. The critical clauses to analyze and add will be the people who own the business, the person who will manage it, the responsibilities of the owner, and how it will be taxed.
Employment Agreement
Do not keep this document for later but prepare it in advance so that when you do hire an employee or employees you have it ready with you. An employment agreement will help prevent any misunderstanding or miscommunication and both parties will know what they have to do and what to expect from each other. This agreement should include the wage and benefits provided to the employee, their job description, working hours as well as process in case of termination or resignation. It will help your employee to gain more clarity and save both parties from any kind of dispute in the future.
Employee Handbook
For a business to be successful in the long run, all the operating procedures it needs to follow should be clearly stated. This applies to all types of big or small businesses. Relying on impulses or verbal direction without policies and guidelines thoroughly written can be very challenging for a business. Prepare a well-written employee handbook so that your employees can know their rights as well as what their obligations towards your company are. It can help them to understand what they can or cannot do. This document should cover all topics related to discrimination, harassment, compensation, safety and security procedures, and discipline.
Privacy Policy And Terms Of Service
These are two separate legal documents that you should prepare. This is more crucial for a business that has e-commerce solutions or mobile applications. The terms of policy include a set of terms that the user or consumer agrees to before using your services online. The privacy policy on the other hand allows the user to know how their data will be used. This is because they will need to enter certain personal details when they purchase something online. These documents should include how the online payment will be processed and data security.
Having the right documents in place regardless of the type of business you are in will be a huge advantage for you. They will make you less prone to legal problems that can cost you a lot of time and money. It will give you time to make your foothold stronger in the market rather than fight small issues that can be taken care of from the beginning itself.