Rise Up In Business

Ready to leave behind the corporate grind and become your own boss?

You’re not alone!

Over the last year, I've seen a big increase in clients seeking my guidance as they set up their own businesses. They come from various industries, each with unique skills and backgrounds, but they’re all asking the same question: "How do I successfully make this leap?"

I absolutely love answering this question and helping budding business owners feel confident and secure as they set out on their journey. Which is why today I’m breaking down what you need to consider from a legal perspective when moving from corporate to consultancy.

1. Your Business Structure:

Choosing the right business structure isn’t just a box to tick; it’s a foundational decision. I see a lot of people jump in as a sole trader to 'test the waters’, thinking they can reassess later. But I can't stress enough how important it is to get this right from the start! Each option carries its own set of risks, so it's crucial to understand which path suits your industry and personal goals best. I know it can feel overwhelming, so get help from a knowledgeable business lawyer or accountant to work out what will work best for you!

2. The Necessity of Insurance:

The question isn’t whether you need insurance or not (you do), but what kind of insurance you need. Insurance protects your enterprise from unforeseen liabilities, and some larger clients wont work with you if you don’t have it. Connect with a reliable insurance broker to work out what policies suit your needs. They can walk you through the nuances of different policies and help you choose the best fit without relying on anonymous online templates.

3. Guarding Your Intellectual Property:

When you're taking the plunge to start your consultancy, it's vital to consider your intellectual property (IP). What ideas and materials are you bringing into your new business, and are they truly yours to use? Beyond identifying what you can legally use, we must also look at how best to protect your IP. By setting clear parameters for sharing and using your IP, you can prevent conflicts and ensure your ideas remain yours

4. Regulatory Compliance:

Don’t underestimate the importance of regulatory compliance, particularly if your industry demands specific licences or certifications. In the corporate world, these were often managed for you, but now it’s your responsibility. Be sure to fully understand your obligations to avoid any unwelcome surprises.

5. Client Service Agreements:

Many new business owners feel uneasy about presenting their own agreement, wondering if they should simply use the client’s, but this is a recipe for trouble. Work closely with your business lawyer to craft an agreement that reflects your business ethos and protects your interests. It should detail service scope, payment terms, confidentiality, IP usage, and termination conditions.

6. Pitfalls to watch out for:

Never rush into accepting revisions to your agreement just to secure a client. Take the time to seek legal advice and understand the implications fully.

Beware the handshake agreement! It doesn’t matter if they’re a stranger or a long-time friend, every client should go through the same onboarding process to ensure nothing falls through the cracks.

Steer clear of using template agreements that might not suit your business. They might seem cost-effective at first, but tailored documentation is the way to ensure comprehensive protection.

So remember, transitioning from corporate to consultancy is a significant move, and it's perfectly normal to seek guidance on this path. If you’ve still got questions or want more tailored advice, reach out. I'm here to help you make this journey as smooth and successful as possible!

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