P4: in this task I have been required to describe the legal and financial aspects that will affect the start-up of my business venture in the following area:
Legal Statues and Legal Liabilty
Unlimited liability
My business is going to be as a sole trader as it is simple and there will be no legal requirement where you just set up your business and get on with it. The profit you get will be for you only but you also have to be income tax for the money you get. However, there will be just some legal constraints and you have also unlimited liability. So any depts. You get will be mine and mine only and if I stop trading with any other companies will be all my own responsibilities. Creditors will claim to take your house or any other things to cover these depts. There are some advantage and disadvantage of being a sole trader and these are:
Advantage of sole trader:
Ø It allows me to offer a personal service to my customers
Ø Any decision-making would be made fast
Ø The profit is only mine and not shared
Ø And any financial information will be kept privately
Disadvantage of sole trader:
Ø The growth is limited to the amount of capital one person can raise
Ø I will have unlimited liability for the debts of firm
Ø It is difficult to take holidays
Ø Ill health can cause long-term problems for the business
Ø The working hours are often longer than usual
Ø A sole trader may lack some important skills needed to make the business success
Ø And if I have problems, it can feel very lonely
Trading terms and conditions
When my business sell products and services it will then make a good sense to make very clear the terms on which my business selling to avoid disputes arising later. The terms my business sets are intended to protect my company from unreasonable claims from customers, so we should always include details of price, payment terms (such as immediate cash payment or an agreed period of credit) and arrangements for the delivery of products and services. So every time my business should state the terms and conditions so that for the customers to agree for it as this will make the terms much more legally binding. Also when my business buys any products, we should read the terms and condition and see if they are acceptable according to my business.
Trading Standards:
What trading standards usually do, is protecting consumers from dishonest business traders.
So like any other businesses, my restaurant should follow it to be more aware of my responsibilities to my customers and traders.
Licences:
My business needs a licences in order to operate legally in this country, so in order for my business to be licence I need to check if my new venture needs a licence and if it does have a licence then I have to find out where the licence can be obtained.
Contract duties and responsibilities:
In order to be legally working in this country, I have to provide all my employees with a new contract that explains all the terms and conditions about the job, how much they will be earning, holidays, job uniform, and what would happen if they didn’t meet all the needs and expectations.
Health and safety:
My duty as a manager is to provide safety for my customers, employees and restaurant. So I have too make sure as a manager is to explain the health and safety conditions to my employees and how to respond if a problem happen. As I am opening a restaurant, I have to make sure that my food and drinks in a good quality and any expired product to be thrown away.
Sources of advice:
As I am going to be a new competitor within the market, I have to have some advice from the DTI so I know how to run the business and what to do in order to develop it.
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