All companies need certain documents to carry out their usual business. If necessary, you could even create legal documents online to fit your firm’s specific needs. In this post, we’ll show you six forms and documents you’ll need when starting a business.
Creating a Comprehensive Business Plan
With the right business plan, you’ll have a clearer idea of your services. You’ll know exactly where you sit in the market. Here’s what your business plan should have:
- A mission statement, including an overview of your products and services.
- A full description of your company, its goals, target audience, and industry.
- A market analysis that highlights your potential growth and challenges.
- A breakdown of the firm’s structure, such as if it’s a limited liability company.
- An overview of your intended sales strategy, including potential campaigns.
- A look at your projected long-term finances and any major funding goals.
This document acts effectively as your company’s North Star. Though your firm will change over time, this plan helps you stay on target. You’ll also develop a stronger strategy for growing as a business and reaching your full potential.
The Importance of an Employment Contract
If you’re hiring, you’ll need a well-written employment contract. This sets out an employee’s role, responsibilities, and benefits. It also highlights the notice period for termination. If you enter into a dispute with your employee, these documents can help both parties navigate it fairly.
There are three types of employment contracts: full-time, part-time, and fixed-term. Full-time will usually cover around 35 hours per week. Part-time hours can depend on your needs as well as the employee’s availability. Fixed-term contracts help cover seasonal shifts in demand.
You might also need to add extra clauses, depending on the work. For example, certain jobs will require a non-disclosure or confidentiality agreement. These forbid the employee from sharing sensitive details about their work.
It’s technically possible to have a verbal employment contract. However, these are hard to prove compared to written ones. They’re technically still legally binding, but you might find it harder to seek restitution in a dispute.
Do You Need a Business Lease?
Some companies realise too late that they don’t require an office space. Think carefully about whether you need to rent a physical location. Could you still conduct the same business at home? Could your team?
If you do need a lease, make sure it’s up to scratch. Use online templates to see if the landlord’s document meets every key requirement. If there’s anything amiss, bring this up – and make sure you get a fair contract.
Your Company’s Health and Safety Policy
Any UK company with 5+ employees must have a health and safety policy. Even if all your work is remote, this document protects your team. It ensures they have ample office space and a safe workstation setup.
Your health and safety policy must include:
- A policy statement declaring your commitment to safe working practices.
- An outline of who is responsible for handling health and safety matters.
- Procedures for risk assessments, including how often you’ll carry them out.
- Information on how to formally report hazards and workplace incidents.
You must review this policy regularly, around once a year. If an incident happens on your watch, check it over early. You can then make changes that prevent these problems.
Should You Use Independent Contractors?
Start-ups and small businesses often rely on freelance workers. You might even hire these over full-time employees, assuming it fits your business model. Here are a few reasons companies of all sizes sometimes favour freelancers:
- No need to pay employee benefits
- Freelancers manage their own taxes
- Less need to buy office equipment
- Easier to scale the workforce over time
- Can bring experts in on a per-project basis
- Often quicker than hiring employees
However, there are still some caveats. Freelancers can often set their own schedules and might have other commitments. This means keeping them to a regular 9-5 timetable would be difficult, if not impossible.
Ultimately, the choice between an employee or freelancer contract is always yours. You should, however, think carefully about which is best for your business. You might even combine the two.
Streamlining Purchases With Invoices
An invoice (especially with an online template) makes it easier to track your purchases. Any new start-up needs all the help it can get to manage its cash flow. A comprehensive invoice includes full details on the goods and services you’re buying or selling.
If your company eventually reaches the £90,000 VAT threshold, it will need to be VAT-registered. This means it must use a separate VAT invoice to continue meeting HMRC’s guidance.
Conclusion
Your start-up’s documents outline its goals and ensure it always stays compliant. Make sure you use online resources to make legally binding templates. These are much faster (and often much cheaper) than getting someone to draft them for you.
