The legal statue of a business could be a sole trader, limited company, partnership and franchise. My business is sole trader because the benefits of being a sole trader are that no need to share the profit with anyone and decision can be made by you directly. The disadvantages of being a sole trader are working for long hours and it may not have enough skills. Therefore once my business picks up I will be able to change the status of my business from sole trader to partnership which is much better for my business to become successful.
Trading terms and
conditions
The trading conditions need to be clear for the customers.
This because that the customers should be aware from the trading terms in term
of price and the methods of making payments and delivery service. Therefore the
trading terms should be written clearly to avoid any problems. Furthermore, the
government give the businesses information such as consumer’s right, food, law,
fair trading, safety and welfare.
Record keeping
Record keeping is very vital in business to keep a track of
what is happening in the business to have a proof if any problems happen. For
example, the records that the business keeps are credit card statements,
invoices, inventory, bank statement, employment applications, and permits and
licences. This is because keeping record will help the business to be more
efficient and other cretin records have to be kept by the law. Therefore, for
my business I need to keep records of health and safety, employment
applications and permit licences.
National/local laws
There are two different laws which are national and local
lows. This is means that a certain areas might have a recycling and waste law,
which local businesses have to follow. However, if the rules and regulations
are not followed it will impact on the business as it can result in fines and
closing the business in some cases.
Health and safety
Health and safety regulations within a business environment
are very important for both employer and employees. The reason for this is the
employer is responsible for the safety of the employees and customers.
Therefore, it’s very important in the business to decrease the possible risks
to make sure that the environment safer. Furthermore, to avoid risks there
should be a written health and safety procedure to be followed by the employees
and customers. For my business I need to make sure that the restaurant is safe
as well as the food and if it’s something wrong happen I have to deal with it
as quickly as I can. At the same time i have to ensure that Fire exists are
clearly labelled.
Contract duties and
responsibilities
Employers have many legal responsibilities such as paying
employees, hours of work, contract of employment, VAT and discrimination.
Furthermore, contracts of employment should be presented in a written statement
from the employer to the employee includes information such as, job duties,
hours of work, salary and any entailments to holidays pay. The contract is very
important for the employees because it tells you about duties and
responsibilities, how much salary you will receive and about the times hours.
At the same time businesses need to be registered for VAT if they making more
than £82,000 of service/products a year. Therefore, my business will need to
abide by all of the above.
Regulatory bodies
Regulatory bodies have been set up to monitor standards;
businesses have to keep to these standards. Regulations bodies are include Food
Standard Agency, Financial Service Authority, Medicine and Healthcare
Regulatory Agency. Furthermore, there are certain organisations that provide
you with advice to run your business successfully. Examples of such
organisations are trade associations, Business Link, British Chamber of
Commerce.
Financial aspects
Financial planning is very important by the law. This is because
a start-up business could be expensive. Therefore, the best things to do id to
start-up cost as low as you can. For example, renting the premises is much
better than buying it as the business just start-up. For my business I would
rent premises to start off with and when I improve my financial position to
move to bigger premises or buy my own ones.
