A new financial year is the perfect time to check in on the legal foundations of your business.
No matter what business size, the right legal strategy can protect your growth, reduce risk, and give you space to lead with confidence. Let’s break down five key areas where smart legal planning can make a big difference.
1. Incorporation strategy
Good planning is infinitely cheaper than undoing mistakes. The business structure you choose can have major implications for managing liability, tax, business growth and exit options. Add co-founders into the mix, and things can get messy fast without clear agreements.
Taking the time to get your incorporation and co-founder arrangements right from the beginning helps prevent future disputes and builds a stronger business foundation. Whether it’s shareholding, lending arrangements, decision-making powers, or exit planning, put it in writing early to set your foundation for success.
2. Get it on paper
Whether you’re dealing with clients, suppliers, staff, or partners: clear, legally sound contracts are essential. They help manage expectations, define deliverables, and make it easier to resolve issues when things go wrong.
Without them, managing performance issues, misaligned expectations, disputes and liability is difficult and will cost more. And guess what, misaligned expectations are often flushed out through the contract negotiation process meaning you are less likely to have disputes simply by virtue of having gone through the process of writing the contract.
3. Manage your debtors
With many businesses still navigating economic uncertainty, it’s crucial to have systems in place for managing payments. Consider your process for taking deposits or pre-payments, direct debit arrangements and credit limits. Don’t do work without payment upfront if you can’t afford not to be paid.
Even if you trust your customers to look after you, sometimes it’s their customers that face the financial pressure that means they can’t afford to pay you, despite their best intentions.
And if there are overdue amounts, be proactive. Follow up consistently, consider automated reminders, and don’t hesitate to get legal advice early if you’re chasing payment. The longer a debt lingers, the harder it is to recover, and the more likely it becomes a write-off.
4. Workforce strategy
Employment law is constantly evolving. Set a strategy to manage your workforce in the context of ongoing changes and expectations. Make sure your policies are ready for things like flexible work arrangements and sexual harassment. Don’t forget to address the risk of the upcoming loss of non-compete provisions in employment agreements. It’s about strategy, not just compliance.
Do our Sexual Harassment Business Health Check Quiz here.
Do our Business Health Check Quiz here.
5. Look after yourself
Running a business is stressful at the best of times. After the prolonged pressure of Covid and ongoing economic uncertainty, many business owners are reporting significant burnout.
Know your limits. Set boundaries, take breaks, and seek support when needed. Protecting you is a crucial part of protecting the business.
Legal risks are part of doing business, but they don’t need to keep you up at night. With the right planning, advice, and a bit of proactive thinking, you can focus on running your business with confidence and maybe find some more time for that elusive self care.
Want to talk through your legal setup, review your contracts, or chat about what’s changing in employment law? Contact Sarah Gee, Business Lawyer today.
Book a time with our online booking system at: curiumlegal.com.au/contact
