LEGAL

In uncertain economic times like the ones faced at the onset of Covid-19, start-ups have become more and more common place. The past two years have been a swim or sink situation, apart from the lives lost and adversely affected, our livelihoods have been largely impacted – many people have lost jobs and many have been forced into entrepreneurship (when I say ‘many’, myself included).

Majority of leadership roles in companies, business or government are still filled by men. The lack of female representation in leadership positions can make it near impossible for hope for other women to reach those heights. Women are just as capable of handling issues, running companies, and making executive decisions just as our male counterparts. Needless to say, we are past debating the integral role women play in growing economies Women have always been shaping the world. We need women in leadership. If the majority in leadership (i.e. male leaders) viewed gender diversity as a business imperative, they would work to understand the challenges women face in the workplace and take bolder steps to support and advocate for change. Those in leadership positions, both men and women, need to use their authority to promote and advocate for women. It’s imperative that we lead deliberate and structured approaches towards combating gender inequality in the workforce.

We should come to any role as a woman before as a leader. The qualities of nurturing and /or developing people, the innate ability to connect, our intuition, sensitivity and empathy. As women, we have innate and unique qualities that assist in approaching leadership differently.

Leadership is not simply having a title or being placed in a position that carries the responsibility of leading. One of the best ways to move forward and have an active role in your development is to surround yourself with support, accountability and the positive energy of other women thriving in their businesses or careers.

Having a mentor can be important to your development, both personally and professionally, but a single mentor in most cases cannot fulfil all your needs or have the time or the capacity to be your only source of support.

Considering that we learn and develop through lots of relationships in our lives, focusing on finding one mentor limits our personal growth.

Therefore, the more diverse your mentorship circle is, the greater the exposure you’ll have to a range of perspectives and experiences.

You can lead where you are, for instance in a start-up, you lead by ensuring that your foundational documents are in order. It’s understandable that entrepreneurs are focused on growing their businesses and not on legal matters.

However, some of the greatest pitfalls that face start-ups, if not at the outset, then later down the track, arise from the failure to lay a proper legal foundation.

A shareholders’ agreement and memorandum of incorporation are foundational documents for any start-up.

Keep records! One of the most common mistakes made by start-ups is the failure to maintain basic company secretarial and other statutory records. A failure to maintain proper records can also prove to be very costly if the business grows and wishes to obtain investment in the future. Future investors will want to conduct a due diligence on the business before investing any funds and statutory compliance (or non-compliance) is a key consideration.

While funding is a crucial aspect for any budding entrepreneur, the understanding of all the compliance and legal requirements of starting up your small business is as important. Falling behind or not complying with legal and statutory regulation can quickly sink a business, so it’s always best to keep in mind getting the legalities right from day one. You must take steps to protect your own assets in the event of your business failing.

I urge you to engage the services of an accountant and attorney to assist with book keeping, tax returns and legal compliance, this also helps to ensure that your start-up has a solid legal foundation from which to grow.