71% of businesses fail within 10 years. Start-up businesses have a lot to arrange and think about. Having legal issues is something they avoid. Somehow, however, research has shown that many businesses get in trouble because of negligence. If the management was on top of it from the start or just simply found out earlier, the problems could be solved without the interference of legal issues.
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Prevention of legal issues
Improper documentation used for the sale of shares, ignoring lax laws, not having the right licences and improper to no legal protection for Intellectual Property (IP) assets are all major legal risks faced by new businesses. The easiest way to prevent legal issues is to have a legal department within your company. Even though it might not be the first department that comes to your mind as a company owner, it is important to shed some light to the legal department. It could help avoid issues that many start-ups face.
Storages
Data could be stored in many places. It could be documented on paper and then stored in a warehouse or office. Nowadays, technology is used to store data. Though you will save time and money and get a better overview on the data, it does not come without any risks.
Data management has been a topic and department which has been over the news a lot for the last couple of years. The reason for data management to be mentioned this much is because of the sensitive information it holds and contains most of the time. The data is usually susceptible to fraud, which is a huge disgrace in today’s society. Before making use of technology, therefore, research must be conducted.
When it comes to storing health and safety data, Capptions has proven to come in handy. This company established Environment Health and Safety (EHS) software on an application. To those asking themselves “what is EHS?”, to users it is a platform on which they can fill in or retrieve data based on health and safety within the work environment. Therefore, the users of the application are either staff or management.
GDPR
Start-ups must do their research properly, before entering the business world. Since 2016, all companies doing business in Europe and thereby collecting data from citizens from the EU member states, must be compliant with the GDPR. It stands for the General Data Protection Regulation, which requires business to protect the personal data and privacy of these citizens. In case of severe infringements in the GDPR, the concerning business could receive a heavy fine of up to 20 million euros or up to 4% of the annual global turnover of the preceding fiscal year, whichever is higher. Therefore, a breach in personal data and the privacy of customers must be prevented at all times.
