The Four Most Conventional Small Business Legal Issues Confronted

Sneha Hull | September 1, 2021

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While small business owners are typically preoccupied with the day-to-day operations of their businesses, they frequently ignore the small business legal issues and obstacles that they are likely to encounter in the future. Thus, it is a pressing need of an hour, majorly after the COVID-19, to identify their legal challenges and be well prepared for them.

The neglected or untimely addressing of the legal issues could cost you a big deal and prove disastrous, and might even be challenging to recover. This article will describe legal issues affecting businesses and how to avoid them tactfully.

There are myriad essential aspects of the business to be considered, such as overhead costs, marketing, employee management, business & marketing budget, etc. Among all these, legal aspects of business also hold a similar level of importance but are usually underestimated issues for business. Legal counsel from a reputable legal firm can guide you in identifying prospective issues and preparing for the future. Spend time ensuring that your firm is legally solid.

Here are the most common small business legal issues encountered, and you should be cautious about.

Establishing the Wrong Business Structure

Establishing the wrong business structure stands first in the list of legal issues and is also critical. The business entity is classified into sole proprietorship, partnership, LLC, S-Corp, or C-Corp, and each has its own set of tax structure and legal obligations. However, registering under the wrong ones has a severe repercussion.

Business law issues are not limited to tax laws; state and federal legislation changes may also impact a company's risk profile.

Contracts are another significant legal issue raised by COVID-19. Unfortunately, once the courts begin to normalize their work environment, precedence will be given to criminal and family law proceedings. Thus, resulting in delays in contract disputes, which will have to wait years to be resolved.

Inadequate Protection of Intellectual Property

Businesses are constantly developing new and distinctive ideas, technologies, products, and marketing strategies. However, many small business owners believe that intellectual property issues are not their responsibility and only large corporations deal with them. This is the reason often these legal aspects of business are a common issue among small businesses.

It is advisable to do in-depth research before naming your business or launching any new products or services to avoid using and enforcing identical trademarks, which will count as infringement. The consequences of infringement are atrocious. The owner will have to alter their name and suffer legal consequences, including damages and attorney's costs.

Without trademark registration, ventures risk losing the right to their branding, wiping out years of effort and investment. Securing a trademark registration precludes the occurrence of any of these issues and inconveniences.

It is needful to protect intellectual property and law for small businesses. So, consult an expert attorney or business adviser to identify what should be secured by copyright, patent, or trademark.

Improper Licensing

Every business must have a valid license to operate. However, it may be perplexing and challenging for novice business owners. Before you may lawfully trade, you must obtain a license. Improper licensing leads to business law issues and is one of the most common small business legal issues.

Government licensing requirements vary according to the kind, size, and location of the firm. Additionally, the business license is contingent upon the goods or services provided by the business. Therefore, licensing costs vary according to location.

Obtaining a license for your particular business demonstrates that you are knowledgeable about your industry and are capable of operating the appropriate equipment. If you are discovered conducting business without the proper license, you may face severe fines or possibly have your business activities halted.

An experienced small business lawyer will help you through the paperwork and ensure that your business is properly licensed.

Not Hiring or Firing Employees the Right Way

Among many legal concerns, one of the most frequent business legal issues for small businesses are improper employment or termination of workers. Unfortunately, numerous small business owners make the error of employing or terminating staff without proper paperwork or agreement. Inadequately executed agreements or employee contracts expose your small business to litigation.

Having a written contract is necessary and differs as per the employees whether they are full-time, part-time, and casual. The written contract includes information about the employee and employment details such as:
  • Stipulate payment
  • Rights and responsibilities of the employees
  • Benefits
  • Termination clauses
  • Date the contract was signed
  • Potential reasons for termination

The employment contract needs to clarify the terms of employment, conduct, grounds of termination, expected behavior from employees, etc. Employees are asked to abide by this contract. In case of violation, within your legal rights, you can terminate their employment and safeguard every small business's needs.

If you have employees or contractors, you must adhere to small businesses' federal and state employment laws.


Dealing with the legal aspects of business is not a pleasant task, but you cannot ignore it, and if you do, you may have to pay the price. Small business legal issues are critical business law issues that impact a large number of small business owners.

Few small business owners are familiar with the legal elements of a business. It is crucial to engage a legal team to assist you in navigating it smoothly and avoiding the danger of destroying the future of your business.

Frequently Asked Questions:

What are the primary legal issues that small businesses face?

Small businesses face many legal issues in their business operation, but the major ones are:
  • Establishing the Wrong Business Structure
  • Shareholders' Agreement
  • Improper Licensing
  • Inadequate Protection of Intellectual Property
  • Not Hiring or Firing Employees the Right Way
  • Response to Changes in the Law and Regulations
  • Employee Termination

How can a business overcome legal issues?

Below are few tips for businesses to overcome legal issues:
  • Recognize your regulations
  • Inform yourself about labor laws.
  • Acquaint yourself with intellectual property
  • Select the appropriate attorney
  • Maintain Vigilance


Fordway Solutions

Fordway is a Leading UK Cloud Service provider and IT Consultancy based in South East England. We have more than 25 years’ experience providing business infrastructure change and support to UK organisations in the public, private and not-for-profit sectors


A Complete Set of Guidelines for More Measurable Marketing Campaign

Article | August 17, 2021

When the term "marketing" is spoken, we immediately think of bright and colorful advertisements, particularly on digital platforms. Setting goals and working toward them is vital to marketing. The success and failure of marketing campaign goals must be measured as part of the overall process. Unfortunately, the campaign's results can be measured using only a few measurable markers. As a result, here are detailed instructions for creating a more measurable marketing campaign. Marketing accounts for a sizable portion of expenditures, so making it precisely measurable is a critical component of every digital marketing strategy. In addition, marketing is the backbone of every campaign, and effective marketing may result in a positive return on investment. Why is Measuring Marketing Campaigns Essential? Measuring campaigns provides you a clear view of your success and failure, as well as what is and is not working with your efforts. In addition, analysis of campaigns provides insight into whether you are scaling at the appropriate rate and maximizing the efficacy of your online efforts. You may believe that your marketing effort has been a success, but this may not be the actual case. Regular campaign measurement enables you to re-evaluate your objectives for the ad campaigns and adjust your marketing approach accordingly. Often, small business owners overlook marketing analytics, yet they are critical for evaluating your marketing efforts and performance. Measuring your success is contingent upon gathering data on marketing actions and tracking campaign data and performance. However, the term "success" is subjective and varies according to the company objectives of each owner. Therefore, assess the success of your campaign in light of your company objectives. Below is the list of tips for a more measurable marketing campaign. Make List of Marketing Objectives To begin, establish and compile a list of objectives for your ad campaign. This is the first step in creating the most measurable campaign possible. This one step determines both success and failure. Marketing objectives are the goals that businesses set to market their products and services to their customers, which aids in campaign planning. In addition, setting marketing goals entails developing a plan for the business's overall growth. Keep in mind that your marketing objectives should be linked with your business objectives. So, first, determine your campaign's objectives: are they to acquire new consumers, promote a new product, improve brand loyalty, or increase ticket sales? The more precise your objectives are, the more measurable will be your marketing campaign. Set Realistic and Achievable Objectives for the Ad Campaigns Having no reasonable and measurable goals, you will lose direction. Instead, learn how to create marketing targets using the SMART (Specific, Measurable, Achievable, Realistic, and Time-related) framework theory. The effectiveness of an online campaign is highly dependent on the SMART framework; this framework provides transparent performance metrics for your efforts. SMART goal benefits are: They direct you appropriately They emphasize the need to measure results, which is essential in digital marketing They ensure that your goals align with your vision Consider the list of goal-setting criteria to help you create more effective and attainable objectives. Below are a few common and realistic goals set by many small business owners: Increase brand awareness More lead generation Improve conversion rates Increase web traffic Increase sales Increase product demand Find out Your Target Audience Identifying your target audience is critical for building a measurable marketing campaign. First, evaluate your marketing objectives; to boost brand loyalty and encourage repeat purchases, you must first establish your present consumers. Likewise, if you want to increase your reach and attract new consumers, it's critical first to understand the nature and preferences of your current clients. Target marketing educates firms on how to effectively offer their products and services and increase their customer base. Finding out your target customer acts as a crucial point in your marketing roadmap. It allows your business to focus on marketing efforts and enables you to generate business leads in an organized and affordable manner. Set Marketing Budget After establishing the objectives of campaigns, establish a marketing budget. Next, outline your sales funnel; this will provide you with a clear image of your clients' purchasing power and, in turn, contribute to estimating the return on your marketing expenditure. This calculation helps you to opt for the campaign's budget while still earning a profit. Your marketing budget must be realistic to convey your message successfully to your audience while still maintaining profit margins. When planning a budget for marketing, contemplate all expenditures involved with promoting your firm, including paid advertisements, marketing tools, staffing charges, and website upkeep fees. Develop Marketing Strategy Once your marketing objectives have been established, develop a marketing strategy that is linked with them. Finally, create a marketing strategy that allows for effective campaign planning. Before developing a marketing strategy, make sure you have the following data: Market segmentation Qualitative market data Competitive analysis Quantitative market data Keep your overall strategic goals in mind when developing a new marketing strategy or using a digital marketing tactic. Then, after you've established clear, precise goals, consider the strategies that will assist you in achieving them. A good marketing strategy helps you attain a measurable marketing campaign. You can choose any combination of the 7Ps (product, price, promotion, process, people, place, and physical evidence) of the marketing mix to achieve your marketing strategy. Measure Your Progress Measuring the effectiveness of marketing campaigns is pivotal to measure the success of your ad campaigns. There are various metrics to measure online advertising effectiveness. For example, sales and engagement effectiveness consists of several metrics in use to be measured. Metrics of sales and communication can be: New leads generated Total website visits Click-through rate (CTR) Website traffic to lead ratio Metrics of engagement are: Brand mentions Reach Brand name search Average time spent on page Scroll tracking The outcome of keeping track of these metrics and analysis of the campaigns determine the success of meeting the marketing goals. If not successful, analyze the aspects that prevented you from reaching your goals and do better next time. Thus, using metrics serves as a post-campaign evaluation and turns it into a most measurable marketing campaign. Every hour of the day, marketing as fundamental changes and evolves. Making measurable marketing campaigns assures and expands chances for success and enables you to make modifications to strategies that are not generating success or growth. The above are a few techniques that can help you create more quantifiable marketing initiatives. Frequently Asked Questions: How are campaign metrics measured? Metrics are measured through tools such as Google Analytics. For example, Google Analytics provides information like: Who visited your webpage? Which customers are coming back? From where do they come? Traffic generation Conversion rate Click-thru rate (CTR) Cost per click (CPC) What are the benefits of a campaign evaluation survey? Here are few benefits of a campaign evaluation survey: Demonstrate your efficiency or accomplishments Determine whether you are on track Regular campaign evaluation enables you to maximize the effect of your efforts. In addition, monitoring and assessment will aid businesses in planning future campaigns and initiatives. { "@context": "", "@type": "FAQPage", "mainEntity": [{ "@type": "Question", "name": "How are campaign metrics measured?", "acceptedAnswer": { "@type": "Answer", "text": "Metrics are measured through tools such as Google Analytics. 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Fordway Solutions

Fordway is a Leading UK Cloud Service provider and IT Consultancy based in South East England. We have more than 25 years’ experience providing business infrastructure change and support to UK organisations in the public, private and not-for-profit sectors