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|Doing Business In 2020 by emergingstars: 4:52pm On Jan 10, 2020|
Venturing into a business is more than conceiving an idea and having the required capital. You need a formidable structure to keep the idea and protect your capital. Necessary advisory services for the business should be sought from professionals in the diverse field affecting the business. Many investors believe that once their business is small, there is no pressing need to seek legal advisory services on the legal framework of the business, some believe all you need to do is register at the Corporate Affairs Commission, for a business like clothing, it may be true but for most business this is not true. There are laws and regulations that guide most business and failure to adhere to these regulations could expose an entrepreneur/investor to penalties and/or liabilities capable of affecting his/her return on investment.
Ideally, before venturing into a business, a potential investor requires the services of a Solicitor to provide legal and advisory services in respect of corporate entity formation, employment policies and contracts, third party agreements, business office lease agreements, trademark, regulatory guidelines, corporate financing etc.
Some years ago, a young vibrant entrepreneur ventured into honey business. He created a brand for himself and started purchasing honey from Northern Nigeria for packaging, branding and sales in Lagos State. Few months into the business, this vibrant entrepreneur was faced with rejection of his products by supermarkets who helped in marketing his products to the end users. The supermarkets premised their rejections on non-compliance with NAFDAC regulations on labelling of food products. The young man did not know better and by the time he sought legal advice, the Supermarkets had already started selling other brands. His failure to seek legal advisory services on his product cost him his market, sadly, the business closed few months later.
For almost every business, there is a governing legislation or regulation, don’t join the league of those who don’t comply with regulations merely because they believe the enforcement apparatus is weak. You don’t want your investment to be the scapegoat of the industry. Moreso when it doesn’t cost much to comply with the law.
For example, an investor in baby formula business must seek legal advice on the implication of the Marketing (Breast-Milk Substitutes) Act on his business, just as, an investor in advertisement business must seek legal advice on Food Products Advertisement Regulations 2019. The nature of your investment or business would determine the legislations that affect your operations. Your Solicitor will guide you on the legal requirements and caution for your business. You can also seek clarifications on this via email@example.com
Asides the regulatory legislations, you also need proper contracts with your employees, consultants and third-party service providers. Don’t just enter a contract without expressing your intentions succinctly in writing. There are implied terms in certain contracts that you may not even know not being a Solicitor but will be binding on you. You need to seek legal advice for your business to prosper.
Permit me to end this article with the story of a very successful business man although illiterate, he understood the yearnings of his market, though uneducated, he knew how to get return on his investment. However, few years into the business, he set up a branch for his business, a disgruntled employee who felt under-appreciated for not being appointed branch manager of the new branch sought legal advice on his contract of employment and discovered that there are several entitlements ranging from pension remittance to employee compensation which he ought to have received but did not receive, he commenced a law suit for these benefits and by implication exposed the successful business man to cost on legal representation and in the ultimate end a judgement debt which eventually wrecked the business. The business man would have avoided this unfortunate feat if he had simply sought advice and did the right thing from the beginning of his business. Whilst it may appear smart to side-track rules and due process, the result could be disastrous. Please consult your Solicitor today. Should you have any question, you can seek clarification or advice via firstname.lastname@example.org
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