Small and Medium-Sized Enterprises and Risk Management

Statistics:
According to YouGov Study:
• On average small growth companies have 8 legal cases per annum
• Costs of legal failings, £13.6bn

The study surveyed 20 different sectors and 1,000 companies, asking respondents to indicate losses related to a wide range of legal issues. The most common legal issues faced by business owners were related to employees and suppliers, regulatory matters, tax, disputes, and software. 80% of small SMEs fail in the first 5 years and the cost of failing to take advice is c.£13.6bn.

Affordability of Legal Risk Management
These statistics show that the failure to take legal advice is enough to destroy most businesses no matter how well they do.

You don’t have to choose between getting a product to market and legal risk management.

Of course, you want to concentrate on your product, getting it to market, branding, social media and sales and not pay for legal risk management but you can afford it and the structure of that is set out in the summary.

Legal Risk Management
Business owners need to pay attention to legal risk management designed to stop sudden expenses or claims drive you off course or out of business.

• To be able to combat claims from clients and customers. These need to be contained in your own bespoke trading conditions.
• Employment Policies and Conditions: Compensation for discrimination claims are unlimited and can sometimes not be warranted forcing you into a settlement.
• Protect your IP and your branding: It’s the most important thing you will have on your balance sheet.
• Corporate governance: That includes resolution of disputes, what happens (to shares) if a partner / shareholder dies. It governs who you are or will be in business with, regulatory issues. You can set the rules now.
• Correct Corporate vehicle: Are you using the entity that suits your business objectives, limits risk and is tax efficient.

You will need to have all this in place to raise investment by third parties in your business.

Legal Expenses Insurance You need to take out legal expenses insurance, it’s not expensive. It means that when you need to defend a claim or make a claim you can rely on your legal expenses insurance so that you can resist or make claims without the fear of the financial consequences if you lose.

Summary
Legal risk management and correct corporate structure is a necessity. The Brooke Consultancy can put this in place by adapting to your financial resources and cash flow.

The Brooke Consultancy is a source of multi-disciplinary advice from one source, to learn more about that download our free Big Business Booklet on our website, contact Lynne Brooke on 07717 813925 or email to have an initial free conversation about business development, legal risk management and affordable costs.

Sources: The Brooke Consultancy, The Letter of The Law

Posted in Blog | Tagged contracts, disputes, enterprise, insurance, legal advice, small business, SME | Comments Off

Testimonials

My firm has found TBC’s input invaluable on, among other things, providing advice with complex international tax matters, thanks to their broad knowledge and extensive network of contacts.

Timon Sinclair

Mahogany Business Consulting, DMCC/ UAE

TBC have been my go-to law firm for many years with any legal issues on behalf of both clients and for myself. Lynne Brooke is a highly experienced lawyer and master tactician, who handles every case with the utmost sensitivity and professionalism. We have worked together on numerous litigation and reputation management projects in each instance the result was a positive outcome. I can highly recommend TBC for their ability to cover all aspects of commercial law and their transparent approach of working on a results focused project/fixed fee basis.

Sabine Raabe

Lynne and the team at The Brooke Consultancy have been providing legal advice for my practice over a number of years. Their impressive knowledge and application of the law spans across a spectrum of sectors and fields, the added value they bring to my business cannot be understated. The legal advice they have provided has proved essential and has enabled my business to flourish and grow.

Over the years I have referred The Brooke Consultancy to several clients, collaborators, peers, and business contacts and the results have been nothing short of outstanding.

I cannot recommend The Brooke Consultancy enough, if you are seeking legal advice as an individual or as a business, look no further.

Pedro Gil

Architect, ARB, RIBA Target Rich International Taiwan

TBC has generously provided me with expert legal advice over a five-year period. He responds with tenacity, reassurance and encouragement alleviating anxiety which flares during critical moments in the litigation process. Lynne is an ‘outside the box’ thinker and dares to venture where others fear to tread. He is an absolute treasure of a man with a sound intellect and a sense of humour.

Jude Kidd

Lynne is a unique character; his approach is based upon in depth knowledge and considerable experience with advice that is both holistic and pragmatic.

Richard Leach

Blog

Small and Medium-Sized Enterprises and Risk Management

Newsletters

Archives

Testimonials