Legal issues of setting up a small business

While there are so many things to think about when starting a business, staying inside the law is one thing that no new business owner can afford to overlook. Without trying to sound overly morbid, having a close brush with the long arm of the law could finish your business before you have even started.

At the First Steps Business Club for new business start ups in Norwich last night, we had a down to earth session on the key aspects of legislation that every small business owner needs to know. Rebecca Cleal from Clapham and Collinge Solicitors explained in practical terms how important rulings such as The Sale of Goods Act can be simply adopted in your business. It was really insightful, both from a business owner and a consumer perspective. Did you know for example, that within the 1st six months of purchase, the burden of proof is on the seller to prove that an item was not faulty if a customer returns it with a complaint? All consumers are protected by a range of statutory rights which apply in addition to any additional warranty or guarantee package offered by the seller. So in many situations spending money on an extended warranty is fairly pointless as the law already protects you as a consumer.

We talked a lot about the law and also the interwoven broader issue of good customer service - at the end of the day if your customer complains and is being a bit unreasonable, its generally good customer service to honour their complaint regardless of the grounds, in order to protect the priceless reputation of your business. The most damaging type of customer is a "silent complainer" - someone who doesnt raise their complaint with you (the business owner) but instead goes out and tells 10 of your potential customers to avoid your company like the plague!

The First Steps Business Club for new business start ups meets monthly at The Rivergarden in Thorpe St Andrew, Norwich to support people with enterprising ambitions or in the early stages of starting a business.