Legal Issues: Recognizing small

business

Business and the Law

Advantage of understanding legal system;• Help to less intimidated by attorneys and the law• Help to empowered owner

Business and law are inseparable

You need a good Attorney

Four ways attorneys typically charge:1. Hourly Fees2. Flat fees3. Retainers4. Contigency fee

Choosing a Business Name

Trade name Assumed name

When selecting a trade name;• Find one that is memorable and discriptive• In picking a trade name is your own goals

Everything is Negotiable

Four steps to structure a negotiation1. Prepare2. Position3. Propose4. Pounce

Legal Liabilities

The simplest form of liability is Direct liability.

Torts: Responsibility for your actions and the Action of your Employees

Vicarious (indirect) liability

If facing a Vicarious liability• The actor is not an employee, but an independent contractor• The actions were outside the scope of agency

Commonsense to avoid torts

• Develop a strong relationship with costumers• Try to develop client loyalty• Give personal service • Listen to yor costumers

The independent Contractor Argument

Independent contractor

Characteristics of an Independent contractor:• Behavioral• Financial• relational

Contracting

Several kinds of situation in which lawyer takes charge:• Standard contracts• Specialty contracts• Hold harmless agreements

Internet Issues in Contracting

Business to Business (B2B)- Suppliers of Raw materials & Wholesalers and Retailers

Business to Consumer (B2C)- Small business to sell over the Internet

Other issues

• How to handle contracts that are required to be in writing to be enforceable.

• How business handles e-mail

Human Resource Management: Small Business Considerations

Attracting Employees

To attract and hire new talent into a medium to large growing organization; • Help wanted ads in newspaper• The use of an employement service• Internet recruiting• Employee referral

Matching the Worker to the Work

- Writing a job description

- Evaluating Job Prospects- Selecting the right person

Covering the Following areas:• The reason the job exist• The mental or physical tasks involved• How the job will be done • The qualifications needed

Training Employees

To begin, you should first assess your small firm’s training needs from the perspective of the business, the job description and the needs of employees.

Initial and Ongoing Training Methods

On-the-job training• Techniques include orientation• Job instraction training• Apprenticeships• Internships• coaching

Off-the-job training• Television conferences• Special study• discussions• Lectures

Three Guidelines for training

1. Give your employees oppurtunities to use their new skills

3. Think of training as an investment

2. Make training an ongoing process

Rewarding employees

To retain productive employees and increase their job satisfaction and ask them what their needs are. Create

an environment that appeals to them.

Psychological contract

Five factors that are most valuable to employees:

1. teamwork

4. Empowerment

3. Training

5. contribution

2. recognition

Compensation, Benefits and Perks

1. Bonuses and Long term incentives

4. Perks

3. Retirement Plans

2. Health Insurances

Human Resource Issues in the family Business

Nepotism-selecting and promoting people based on family ties

Meritocracy- Selecting and promoting people based solely on their being the most capable employee

Good Human Resource Practices For all Businesses

Key elements:

• Transparent procedures with consistent application• Job Basics

• Task repair

• Lines of communication

• Job Metrics