No matter who you are you will make mistakes at some point in your business life and unfortunately law is not very forgiving - ignorance is not a defence. Here are some of common pitfalls to watch out for when setting up your own business.

Partnerships

A partnership is formed when two or more parties form to start a business, sharing workload and investing capital to get things going. It is always wise to have a written partnership agreement and get it checked by a solicitor. If you do not have a proper agreement and it all goes wrong, partnership will be covered by Partnership Act 1890, whose provisions may not always seem fair.

For example, under it partners can withdraw without giving notice. This could mean they insist on immediate return of their capital and business may be forced to close down as a result. If you do not however, have an agreement you may be liable for all sorts of costs and you have no legal standing. It is very important to make sure all of your agreements are legal and will withstand in a court of law.

Clarify Relationships

You can find yourself in a partnership without realising it, for example, if you run a business with somebody but don't employ them, this often happens with husbands and wives or other family members. In a partnership, each partner is responsible for business debts incurred by other partners and there is no limit to their liability.

Put Everything in Writing

I cannot stress enough how important it is to have everything in writing. If things go wrong you have no legal standing without some form of documentation (which includes all correspondence), contracts are basis of all business relationships. A contract will include four key components: Consideration, an obligation to pay or a promise to provide something in return for something of value. Certainty, contract must clearly state what is expected of all parties. The intention to be legally bound and an offer and an acceptance. However, contracts can be oral and it isn't always clear when one has been made.

Confirm every agreement in writing so everyone knows where they stand. What is brief? Who will pay? When? How much? Are expenses included? What are acceptance criteria? Who will own copyright? It is important that all aspects are covered and that there are no grey areas.

Make Sure all Employees Have a Contract

It is very important to have a contract of employment in place from day one for all employees. Make sure that all new employees are entitled to work in this country, or you could face heavy penalties. The contracts act to protect both parties.

Know your Employment Laws

Employment laws in this country are very precise on what you can and cannot do. Before you fire someone, make them redundant or change their terms and conditions of employment, take legal advice. If you don't, you could find yourself open to claims for unfair dismissal, discrimination or breach of contract. Also warn employees that discrimination, sexual harassment and other illegal acts will not be tolerated.

The Importance of Health & Safety

A menu is foundation of any restaurant; Guests will support or avoid a restaurant for its food. Starting with a preliminary menu is a simple and basic approach to restaurant development. Begin with a menu, and you are light years ahead in restaurant development process. A menu will tell you and your Guest what you are trying to be as a business, and greatly enhance your chances for success.

I view a menu for content, image and pricing. Content (the actual items on menu) will dictate service staffing needs, level of culinary experience and type of management required. Who will be doing cooking, do they have experience in this type of food, and how much are you paying them?