Common Legal Mistakes Made by Growing Brisbane Businesses
The decisions made during a period of rapid expansion can have lasting consequences, particularly when legal considerations are treated as secondary to commercial priorities. Engaging lawyers early in the growth process is one of the most effective ways to avoid the kinds of mistakes that become costly to fix later. This article will outline some of the most common legal missteps that Brisbane businesses make as they scale.
Relying on Informal or Poorly Drafted Agreements
As a business grows and takes on more clients, suppliers and partners, the agreements underpinning those relationships become increasingly important. Many growing businesses continue to rely on informal arrangements or generic contracts downloaded from the internet, which don’t provide adequate protection when a dispute arises. A contract that doesn't clearly define each party's obligations, payment terms or dispute resolution process is one that leaves significant room for disagreement. Lawyers can review and draft agreements that accurately reflect the commercial arrangement and protect the business's interests, which is a far less expensive exercise than resolving a dispute that stems from a poorly worded contract.
Neglecting Employment Law Obligations
Taking on staff is one of the most common steps in a growing business, and it's also one of the areas where legal obligations are most frequently misunderstood. Misclassifying employees as contractors, failing to provide correct entitlements or using employment agreements that don't comply with the relevant modern award are all mistakes that can lead to significant liability under the Fair Work Act. The consequences of getting employment arrangements wrong can include back payments, penalties and reputational damage that a growing business is poorly positioned to absorb. Getting the employment framework right from the moment the first hire is made is a much more manageable approach than attempting to correct systemic errors after the fact.
Failing to Protect Intellectual Property
Businesses that are growing quickly often develop valuable intellectual property without taking steps to formalise ownership or register protections. Trademarks in particular are frequently overlooked until a competitor begins using a similar name or logo, at which point the business discovers that its rights are more limited than assumed. Lawyers with experience in intellectual property matters can identify what a business owns, what's worth protecting and how to go about securing protection before a problem emerges. For a growing Brisbane business with ambitions beyond its current market, this kind of early action is well worth the investment.
