Steps to take setting up own business

[lostfaith]

Hello

 

I am considering setting up my own business - I was wondering to avoid breach of contract claims etc do I have to have an employment handbook provided or would I be in breach of contract if I employed anyone? I am just trying to avoid making mistakes if I set up a company and I do not know if this is an important thing or not.

[becky2585]

You are required by law to have a contract for each employee and access to core policies, like disciplinary and grievance procedures. Perhaps more HR minded people and entrepreneurs will be along shortly to help with the practicalities of setting up!

[Sillywizard]

First of all, best of luck in whichever venture you choose. I started my first business nearly ten years ago and I'm still self employed now. You get to captain your own ship and while the security of paid sick leave (SSP or otherwise), holidays paid or otherwise and colleagues as friends are about to become a fond and distant memory, you're going to find out now what your actual personal worth is in the commercial market and you won't have to endure having to follow the orders of someone less able than you ever again. Except your customers of course.

 

The bad news, and I owe you my best opinion, is that the framing of your question demonstrates a fairly startling interpretation of contract and employment legislation and I'd recommend that you do a LOT of reading on this subject before you even consider employing someone. Business Link has lots of information on its site and you may be able to get on to a short course somewhere to assist you. There is no requirement to have an 'employment handbook' and a contract of employment is a relationship definition which arises immediately you employ someone. The terms and conditions of employment as required by the Employment Rights Act 1996 are often referred to as the contract but this is dangerously misleading and you mustn't assume that no contract exists in the two month period you have before being required to issue these.

 

I don't know what type of business you're thinking of setting up but it's unlikely that you'd be able to afford employees in the initial stages anyway - they're expensive acquisitions and want holidays and maternity leave and uniforms and computers and stuff and you should only take them on when you're sure you need them. Employees have to be paid on time, every time and you have to make sure that their tax and NI payments are made on time as well - HMRC knocking on your door is every business nightmare.

 

There's a bit of tongue in cheek in the above but on a serious note, don't even consider starting up your own business unless you can see a clear way in to your market and a clear way out if it doesn't go well; losing money is the easiest thing in the world to do and you'll spend more money and make more mistakes in the first year of your first business than you'll ever do again in your whole life and it's a hard way to make a living. You will either be the worlds best employee, working 60-80 hour weeks, or the worlds best boss, giving yourself a three day week and having lots of meetings with suppliers eager to prise your money from your account. I'd urge you to ensure you know your business and your market thoroughly before launching.

 

I've invented a business device - the process started in October 2010 and I'm hoping that beta testing will start in March 2013. I've been prepared, am still prepared, to terminate the whole thing if I discover a flaw which makes the proposed business less than viable. It's cost about £50 000 so far but I'd rather lose that than throw more money away.

 

EDIT - in the interests of strict truth, I should point out that not all the money is mine and that I have outside investors. I'm not one of those crazy millionaires that you read about in the newspapers

Edited October 11, 2012 by Sillywizard