A lot of small businesses are run by entrepreneurial newbies. These are people who’ve never started a business before, and might not have a massive understanding of the entire business world. As a result, many small companies accidentally land themselves in hot water. They do things that might breach specific laws or will cause disputes with consumers, and they get into trouble. Following this, they may end up being sued or being forced to close down.
Clearly, nobody wants this to happen to their business! So, the best way to avoid getting in trouble is to understand the most common ways small companies land themselves in a deep hole.
Source: The Blue Diamond Gallery
Copyright Infringement
I think a lot of small businesses accidentally fall foul of copyright laws by being a little bit naive. Sometimes, you may copy something that another business has done because you think they won’t take notice of a small company like you. I’ve seen small restaurants use logos/names so similar to big chains in the past. Unfortunately for them, the likeness was too great and they got shut down or forced to spend lots of money to change and rebrand. Ideally, the best way to avoid copyright infringement claims is to just try and be original. Take inspiration from elsewhere, but always ensure your company is unique and not just a carbon copy.
Data Issues
This is easily one of the most common ways small businesses land themselves in the deep stuff these days. All businesses thrive on collecting consumer data in some way. At a basic level, you keep a record of customer emails. But, when you have websites that sell things, you’re in charge of protecting things like their payment details and more personal data. Data issues were already a problem with some small businesses accidentally losing personal data or sharing it with other companies. But, there’s a new General Data Protection Regulation that puts even more stress on data security. It’s advisable that all small business owners read a GDPR guide of sorts to get up to speed on these new rules. The simple summary is that you now have to change how you collect and send data, you need consumer consent, and you have to keep data secure. Fail to do any of these things, and you can end up in big trouble.
Health & Safety Problems
Yes, a lot of small businesses end up in seriously deep water because of health & safety issues. Whether it’s failing to create a workplace that abides by H&S regulations or selling products that cause injuries to consumers, there are loads of ways a small business can fall foul in this field. Even a slip and fall accident in your workplace can lead to a massive lawsuit! To avoid this, read through all the health & safety building regulations and ensure all products are tested to ensure they absolutely do not cause any harm to people that use them.
Avoid getting your business into trouble by being aware of these three things. Hopefully, you can now assess your company and ensure none of these issues occur.
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