Growth is always the goal of business owners. Growth can look different depending on specific business goals. It could mean expanding a practice to new locations, hiring new employees, or even buying out/acquiring another business or practice. All are considered growth, and each comes with unique challenges. As you navigate the excitement and challenges of growing your business, be sure to hire a lawyer in East Brunswick NJ to help with the legal side of things. At Bowne Barry & Barry, we have helped many businesses to grow and expand. Read on to learn 4 things you should think about as you grow your business.
Investing in new locations for your business is one way to grow. Whether you are a retail store looking to have more doors or a medical practice interested in opening up new offices, you will need to consider a new lease. There are many different things to understand when getting a new lease. At Bowne Barry & Barry we help make sure the space is just right for you and that the terms of the lease are reasonable and fair.
First, we look at the space and layout and help you assess if it makes sense for your business. We will help you find various spaces that are available for rent to determine which works best. Next, we will help you negotiate the lease terms. Important lease terms include the duration of the lease, renewal options, type of insurance required, potential subletting, and tenant improvement standards. These are just a few of the things your lawyer will want to fully understand before giving you the go-ahead to sign the lease. Reading and fully understanding all the stipulations of a lease can be challenging, so it is always a good idea to have a lawyer on your side who is used to sifting through lease language.
Another way to grow your business is to simply hire more employees. This is important for medical practices because it allows them to see more patients. When it comes to new hires, contracts are important. First, you must decide if you want to hire “employees” or “independent contractors.” There are several differences in how these workers are legally treated. For employees, the business must withhold income taxes, Social Security, and Medicare. They do not have to do so for independent contractors. An employee must receive a W-4 tax form while an independent contractor will receive a W-9. Employees will be covered by various federal and state employment and labor laws while independent contractors won’t be covered.
In addition, employees are either paid hourly or put on a salary. An independent contractor can be paid for a total period of time. For example, if you know that summer is a busy time for your business, you may hire several independent contractors who are paid at the end of the summer for the months worked. At Bowne Barry & Barry, we can help you decide if it is best to hire employees or independent contractors. In addition, we will help you create new hire contracts. It is important to include non-compete agreements so that a new employee can’t immediately leave and go work for a competitor, giving away all your business secrets. In addition, if you run a medical practice, you will want to include a confidentiality agreement in the employment contract to ensure that your staff will follow the HIPAA guidelines.
Buying Out a Business
Another way to grow is through buying out another business that is similar to yours. This could be a business that you have a relationship with in which the owners are no longer interested in running their business. It could also be a business that is struggling financially and no longer able to run on its own. The first thing to consider is whether or not acquiring the business would actually make your business more profitable in the long run. If the investment ends up causing lost profits, then it is not worth it. In addition, you want to make sure that the acquisition will fulfill your business goals and objectives.
It gets even more complicated when it comes to the employees. Will you let them go? Will you bring them on your staff? Additional questions include, how much will you offer? What needs to be included in the buy-sell agreement? What is a stock purchase agreement? Things can get complicated when it comes to an acquisition. This is where Bowne Barry & Barry, your local lawyer in East Brunswick NJ comes in. We have experience helping businesses through the acquisition process. We can help you with the contracts, agreements, and all other legal endeavors that occur during the process.
What Does Your Savings Account Look Like?
Last but not least, before you begin to make huge investments in your growth, take a minute to consider how much your business has saved up. If you are living paycheck to paycheck, so to speak, it might not be the best time to start investing in new locations, employees, or acquiring other companies. In the case of an emergency (i.e., COVID-19 and the resulting shutdowns), it is so important to have that backup cash fund in order to keep your business alive. This is not to say that businesses should never take out loans in order to grow. It is just important to be aware of your current financial situation before making important decisions.
Lawyer in East Brunswick NJ
Business growth can be both exciting and scary at the same time. There is so much to think about when growing and so many legal aspects to consider. At Bowne Barry & Barry, a lawyer in East Brunswick NJ, we allow you to take the time to live out your business growth dreams while we handle the legal aspects. We have experience working with many different types of businesses through their periods of growth. When you are ready to start growing your business, contact us to learn all about the services we provide.