In the first part of this series, we discussed the importance of understanding your legal
obligations as a small business owner. In this article, we’ll look at some of the key risks you
need to be aware of.
The first risk is that you may be held personally liable for losses suffered by your customers or
suppliers if your business goes under. This means that if you’re forced into liquidation, the
creditors who have a claim against your company can also use their liquidation rights to try and
recover their money from you personally. This is why it’s so important to make sure that any
personal guarantees given by directors are enforceable in Australia (which they are) and that
directors’ insurance is in place as well.
The second risk is that non-payment or late payment by customers could affect your cash flow,
potentially leading to insolvency if left unchecked. The best way to avoid this situation is to
create an invoice keeping system that enables regular collection from each customer and timely
payment of bills from suppliers; this will help ensure payments are made when due and will
minimise any potential disputes over amounts owed or overdue invoices which might otherwise
lead to legal action against a company for breach of contract (which
If you’re a small business owner, you should consider what type of legal advice you need —
and where to get it.
If you’re starting a new business or expanding an existing one, you’ll want to make sure that
your business is legally sound from the start. Here are some things to consider:
- Get a handle on your legal obligations and risks.
- Know how to find the right lawyer for your business.
- Find out if you need a lawyer or can represent yourself in court proceedings.
The role of the lawyer is to advise on all legal matters. They will be able to give you advice and
guidance on your legal obligations and risks.
If you are not sure whether you need a lawyer, then speak with one anyway. They can give you
a free consultation and tell you if they think it is worth it for your business.
A good lawyer is worth their weight in gold!
