Congratulations! You’ve started your own business! What an exciting and thrilling experience. You’ve nursed the idea and fostered it into existence. You own it. It’s your baby.
So what’s next? Every business owner is eager to see their new venture thrive – something that they poured their time, money, and energy into – which in turn leads to growth. But growth involves risks and risks, well, those can be scary, if not dangerous. Growing a company too quickly, and without guidance, can be stressful and, at times, catastrophic; it might damage the company’s reputation or lead to insolvency. Long-term company sustainability can oftentimes be sidetracked by a business owner’s excitement over a company’s short-term success. Having the right support and guidance in place can help minimize the risks associated with a company’s growth. Which is why Arnett Law Group’s attorneys are prepared to help you understand those risks and assist in guiding your business in a direction that helps it prosper.
What Are Some Risks Associated with Growth?
For starters, constantly shifting and uncertain markets. Demand for a certain industry might peak one month and then evaporate the next. Notwithstanding the panic associated with such uncertainty, this scenario can lead to pretty serious cash flow concerns. Business owners need to be aware of that possibility when hiring employees.
Businesses hire more employees to meet increased demand. A business that once employed 5 people may now need 25 to 30 employees to keep things moving. That type of growth is great, but what does it mean for the health of a business? Do you have the policies and procedures in place that protect your business and your employees? Do your business employment agreements protect your investment? Does your business comply with the terms in your employee handbook; with the Department of Labor laws?
For example, many business owners don’t know that, even though they may hire individuals as independent contractors, in reality, the law may classify those workers as employees. Why is that important? Employees and independent contractors have different rights under the law. A business owner may think that labeling someone as an “independent contractor” may limit their potential liability. But if they treat the worker like an employee, and the worker fails to meet certain criteria to classify them as an “independent contractor”, then the business owner could be found to have actually hired an employee, thereby requiring them to comply with employment rules and regulations and potentially opening them up to liability risks.
How Can Business Owners Bypass the Common Pitfalls Associated with Business Growth?
First, protect your company as it grows. The reality is that it will take time for your business to thrive. At the same time, you need to keep dreaming big – that’s how your business came into existence! So, how do you reconcile the two? One way is by hiring attorneys that protect your investment from external, and sometimes internal, attacks while you remain focused on the steps necessary to grow the business.
Second, don’t overextend yourself. Sometimes, success can haunt a company by leaving it overextended. What you want is sustainable growth, which is crucial not only for your reputation, but for your profit margins. You don’t have to do it all yourself! What once began as a company that one to two people could run, may now be an enterprise that requires specific individuals responsible for handling the finances, the human resources aspect, and other matters that may arise. Overstating how much you can handle, and what you can handle, can become a recipe for disaster. Your attorneys can help ease some of the load while you focus on other areas.
Third, ensuring that you have the proper leadership in place. Leadership within the organization is critical. Leaders need to have good communication skills and need to be able to identify the weak points in their organization. Attorneys can help you identify those areas of need and help you solve those issues.
Fourth, awareness of employment laws governing your industry. As companies grow, similarly the number of employment laws that apply to them increase as well. Proper employment practices are crucial for protecting your company and its employees. For example, successful small businesses may not be subject to many of the provisions of the Americans with Disabilities Act (ADA) or the Family and Medical Leave Act (FMLA). Failing to accommodate workers as your company expands, and failing to be aware of the accommodations necessary for those workers, could open your business up to expensive lawsuits that damage its reputation and finances. The best way to avoid these pitfalls is to hire attorneys who can navigate the employment law arena.
At Arnett Law Group, our attorneys are ready to help you face the obstacles that plague successful businesses. We remain cognizant of the threats that face them while taking the necessary steps to help your business grow. We partner with our clients to protect their investment from external and internal attacks. We pride ourselves on being advisors and counselors and we look forward to working with you on your next project. Take the step to secure your business’s future. Contact Arnett Law Group, LLC, at (312) 561-5660 to schedule a consultation, or visit our website at www.arnettlawgroup.com for a comprehensive overview of our services. Let us help you turn legal challenges into opportunities for strengthening your business.
