Issues to consider before starting a new business

The requisite financial ratios like liquidity and debt to equity ratios, would also affect the decision on whether to go debt or equity when raising capital for the business.

The firm must also consider protecting its innovative ideas by means of intellectual property laws.

Intellectual property rights are intangible assets of a firm and serve to increase the net worth of a firm.

Additionally, seeking intellectual property rights ensures that the idea is protected and at most times helps the firm maintain a niche over its competitors.

Other operational aspects of the business such as location and human resources raise a number of legal issues that have to be taken into account.

When considering location; a buy or lease decision has to be made. Each decision comes with its own legal issues.

For example, if the firm decides to buy premises, then sale agreements and due diligence on the property have to be undertaken. If it makes a decision to lease, then a lease will be prepared and registered.

Employees are a key resource of the firm and all necessary laws pertaining to labour must be adhered to in order to minimise legal risk.

Issues such as contracts laws and retirement benefits laws are some of the legal issues to be addressed.

Before establishing a new venture, ensure that you do engage a legal advisor to advise you on the legal requirements for your venture.