businesslegall, Author at Business Legal Lifecycle

So you’re considering buying an investment property. Maybe your business is now a success and generating a substantial amount of profit, or you just got that big promotion at work.

It’s important to think about what to do with this money to ensure long-term financial security and the ability to enjoy your life without being tied down to work. One popular strategy among successful investors is purchasing real estate as an income-producing asset.

In this article, we will discuss the ins and outs of investing in different types of property, including residential and commercial property, as well as important considerations to keep in mind when making this investment. By treating your investments as a separate business and seeking appropriate advice, you can set yourself up for a comfortable and secure future. Let’s dive in!

We started Business Legal Lifecycle to create a simple way for you to understand complex legal terms. Most importantly we want to help you to develop a plan to take your business successfully into the future. Discover your legal risks today.

What to Consider When Buying an Investment Property

There are many questions to consider when buying an investment property. Let’s look at residential and commercial properties individually first and see what the different requirements are for each type of property.

Residential Property Investment

Residential property investment can be a wise financial decision if made with careful consideration and objective analysis. It is important to avoid making emotional decisions based on personal preferences or attachment to a particular property. Instead, one must focus on the key factors that determine the value and potential return on investment.

Ensure you get a fair price

The fair market value of the property is a crucial factor to consider when buying a residential investment property. It is important to research the property’s location, size, and condition, as well as similar properties in the area to ensure that the price paid is reasonable and competitive.

Consider your financing options

The financing aspect of the purchase is also essential to consider. This includes how the property will be financed, the interest rate, and any fees or charges associated with the loan. It is important to have a clear understanding of the debt service required to maintain the investment and ensure it generates a positive cash flow. You can use a property loan calculator to start getting an idea of what your repayments may be.

Calculate the potential income the property will generate

The potential income the investment property generates is another key consideration. Researching the rental market in the area and assessing the current and future rental conditions can provide insight into the potential income from the investment. It is also important to determine whether the property is positively or negatively geared, meaning whether the rental income will cover the expenses and generate a profit or result in a loss.

Are any renovations needed? How much will the upkeep be?

The costs associated with renovations and upkeep of the property must also be taken into account. Assessing the current condition of the property and identifying any necessary repairs or improvements can help estimate the costs and plan for future expenses.

Commercial property investment

When it comes to commercial and industrial property investment, many of the same considerations apply as with residential property, but there are additional factors to consider.

Greater returns, greater risk of vacancy

One important factor is the potential for a greater return, which is often measured against the greater risk of vacancy. Commercial properties generally offer higher rental yields than residential properties, but the risk of vacancy is also higher, as commercial tenants are more likely to vacate when economic conditions change.

The property type and location

The type and location of the property are also important factors to consider when investing in industrial property. Depending on its location, industrial property may be more or less in demand, and different types of industrial properties may be more or less desirable depending on the needs of businesses in the area. It is important to research the market and identify areas of high demand and growth potential.

Does the property have a long-term tenant?

When purchasing a commercial property with a long-term tenant, it is essential to exercise caution to ensure that the tenant remains in the property. If the tenant vacates, it can be costly to find a new tenant or to make necessary improvements to attract a new tenant. This can result in lost income and additional expenses, which can negatively impact the investment’s return.

Can you purchase the property from which your business operates?

Another type of commercial property investment is the purchase of the premises from which your business operates from. This can be a great option as then you are building a business asset rather than simply paying rent.

However, there are also risks involved, as the success of the business is tied to the investment aspects of the property portfolio. If your business fails, the income from the business may be lost, and the investment value of the property may decline.

By conducting thorough research and making informed investment decisions, commercial and industrial property investment can be a wise financial decision with the potential for significant returns.

Questions you should ask your real estate agent

When considering buying an investment property, it is important to ask the right questions to the real estate agent before signing the contract. Asking questions can help you make an informed decision, and it is important to tailor the questions to the specific property and your experience in buying property. Here are some important questions to ask the real estate agent:

How long has the property been on the market?

This question can give you an idea of how keen the seller is to sell. You can use the answer to plan your negotiating strategy. If the property has been on the market for a while, it may be an indication that the price is too high.

Will the seller negotiate on price?

It is important to ask this question to get an idea of the seller’s willingness to negotiate on the price. The answer to this question can help you decide on the price you are willing to pay.

Why is the seller selling?

Knowing the answer to this question can give you an indication of how eager the seller is to sell. This can help you work out their timetable or deadline for selling.

Have they had any offers so far and, if so, how much?

Asking this question can give you an idea of what purchase price the seller will accept, and also give you an indication as to what price other potential buyers believe the property is worth.

What is the lowest price that the seller will accept?

Although agents may not usually tell you this information, it is worth asking to see what the answer is. It can help you avoid overpaying for the property.

Are there any changes in the area that may affect the value or amenity of the property?

It is important to find out about any changes in the area that may affect the value or amenity of the property, such as proposed infrastructure or zoning changes.

Asking these questions can help you make an informed decision when buying a property. It is important to seek advice from professionals such as lawyers, accountants, financial planners, mortgage brokers, and real estate agents to ensure that you follow the process properly.

Business Legal Lifecycle can guide you through the investment property process

Buying a property is one of the most significant investments that a person or a business can make. It is important to do your due diligence and ask the right questions to the real estate agent before signing the contract. At Business Legal Lifecycle, we understand the intricacies of buying an investment property and can guide you through the process. If you’d like to find out more now, check out the chapter of our book on investing in property. If you’d like to ask us a more detailed question, contact us today.

This article is designed to be your ultimate guide on how to grow a business. The expansion and growth phase, as covered in the Business Legal Lifecycle book, is a pivotal moment where you’ll see your hard work from previous phases begin to pay off. Or if you’ve overlooked some crucial elements, the flaws in your business model will be brought to light and magnified…

We’ll help you steer clear of common misconceptions and pitfalls that many business owners face when learning how to grow a business. By following our insights and advice, you’ll set your business up for growth, prosperity, and a smoother transition into the next phase of the Business Legal Lifecycle: Estate Planning.

Business Growth Strategies

It’s important to remember that only around 25% of businesses make it to 15 years or more before failing, and one of the key reasons is that they remain rigid. They don’t adapt. They don’t explore other options and broaden their horizons – these are all things you need to do to ensure business success.

Embarking on the journey of business growth requires a strategic approach, and selecting the right method is crucial for long-term success. Here are a few strategies to help you grow your business.

Expanding to new premises or offices: This method involves opening additional locations for your existing business. This can help increase your customer reach, generate more revenue, and elevate your brand presence. However, it’s crucial to ensure that all systems, processes, and procedures are in place before expanding to avoid potential issues.
Purchasing an existing business: Another option for business growth is acquiring an existing business that aligns with your expansion goals. This approach requires careful consideration of the value of the assets you are purchasing, how they will contribute to your expansion plans, and how the new business will integrate with your existing operations.
Franchising: Franchising involves selling your business as a product for others to use. In this case, you’ll grant the franchisee the right to use your brand, systems, and processes in exchange for a fee. It’s essential to have all systems and procedures correctly established before franchising to ensure you’re selling a complete and functional business model.
Licensing: Licensing is similar to franchising but usually involves granting permission for another party to use your intellectual property, such as a product, technology, or brand, for a specific purpose or in a specific territory. Licensing can help expand your brand and product reach without the need to manage the licensee’s operations directly.

Each of these methods offers unique opportunities and challenges, and the most suitable option will depend on your specific business, goals, and resources. It’s crucial to seek professional advice from accountants, lawyers, financial planners, and other consultants to ensure that your chosen growth method aligns with your overall objectives and plans for the future.

Business Growth Essentials

We’ve already covered how to start a business, now, let’s look at a few business growth essentials.

Systems, processes, and procedures: Before expanding, ensure that your systems, processes, and procedures are well-established and efficient. This will minimise potential issues during expansion, franchising, or licensing. Avoid the mindset of fixing problems later, as this approach can lead to amplified issues and increased costs down the line.
Market expansion opportunities: Research potential markets that your business can expand into and analyse the benefits of increasing your business and brand presence. Expanding into new markets can lead to increased revenue, customer reach, and brand recognition.
Product desirability: Assess if your product or service is something that other business owners would want to use or incorporate into their businesses. This factor is crucial for determining the success of franchising or licensing opportunities.
Specialist involvement: Consider whether you need to bring in a specialist to manage the expansion process. A specialist can provide valuable insights, manage new markets or locations, and help ensure a smooth transition.

Avoid common misconceptions:

Believing that it doesn’t matter if your systems are not in place because buyers will figure it out: This approach can lead to dissatisfaction among franchisees or licensees and damage your brand’s reputation.
Assuming you don’t have a brand to protect: Even during the expansion phase, it’s essential to maintain and strengthen your brand’s identity and reputation.
Fearing the loss of control: It’s natural to feel concerned about losing control during expansion. However, implementing a well-structured management system can help maintain control while allowing your business to grow.
Expanding solely based on others’ opinions: While advice from others can be valuable, it’s crucial to base your expansion decisions on thorough research and analysis, rather than simply following what others say.
Attempting to manage multiple premises without a management structure: This approach can lead to inefficiencies and burnout. Establishing a solid management structure is crucial for successful expansion.
Reluctance to trust others with your business: While it’s essential to be cautious, trusting and delegating tasks to others is necessary for growth. Surround yourself with a reliable team to support your business expansion.

By addressing these essential considerations during the Business Expansion phase, you’ll be well-prepared to grow your business and achieve long-term success.

Business Legal Lifecycle Can Help You Grow Your Business

Understanding how to grow your business is paramount to navigating the Business Expansion phase effectively. By carefully considering the strategies presented, such as expanding to new premises, purchasing existing businesses, franchising, and licensing, you’ll be better equipped to make informed decisions that align with your goals and resources.

By focusing on business growth essentials and avoiding common misconceptions, you’ll set your business on a path towards success and prosperity. Remember, the journey of business growth is a continuous learning experience, and the choices you make today will shape your business’s future.

In this blog, we look at how to start a business in Australia.

Australia is a land of opportunity, with a thriving economy, a highly educated workforce, and a supportive government that actively encourages entrepreneurship. Starting a business in Australia can be an exciting and rewarding experience, but it can also be a daunting prospect for those who are unfamiliar with the local business landscape.

Whether you are an Australian resident or an overseas entrepreneur looking to establish a business in this vibrant country, this blog will provide you with a comprehensive guide on how to start a business in Australia. From understanding the relevant legal and regulatory frameworks to choosing the right business structure and obtaining funding, we will cover everything you need to know to get your business off the ground and set it up for success.

But before we start, there are a few things to be sure of.

Make Sure You’re Ready

The first step in starting a business in Australia is to make sure you’re ready. Starting a business demands a significant amount of dedication and hard work, which makes it crucial to understand all of the requirements and assess your suitability for entrepreneurship and self-employment.

We advise any budding entrepreneur to conduct a thorough self-evaluation and carefully consider the responsibilities and complexities that come with running a business to determine if they possess the essential qualities and skills necessary for success. Take the time to determine if you’re fully prepared to begin a business venture.

Do Your Research

When you’re considering starting a business, it’s vital to perform extensive research and really think about whether your idea will work. Here are some questions you can ask yourself to help figure that out:

Is there a need or demand for your product or service?
How hard will it be to turn your idea into a real business?
Will you be able to make enough money to cover your costs and turn a profit?
How can you make sure no one steals your idea?
Who else is doing something similar to what you want to do?

By gathering and analysing this kind of information, you’ll be able to make a more informed decision about whether your business idea is worth pursuing, and you’ll have a better idea of what you need to do to make it successful.

Is Your Idea a Real Business or Just a Hobby?

Before registering as a business, you should verify whether your pursuits qualify as a business or a hobby. The classification you fall under determines the applicable tax, insurance, and legal obligations.

If you’re unsure which category you fall under, take a look at the government’s resources on distinguishing between a hobby and a business. This way, you can ensure that you’re meeting the appropriate legal and regulatory requirements and receive the necessary guidance to move forward.

With that out of the way, let’s get stuck in.

Decide on a Business Structure

Choosing the right structure for your business is an important decision that can have a significant impact on how your business is taxed, the type of paperwork you have to file, as well as many financial outcomes. This decision needs careful consideration as if you choose the wrong structure, it can result in tax penalties and unnecessary costs.

Sole Trader

As a sole trader, you are solely responsible for all aspects of your business.

Company

Establishing a company creates a separate legal entity from yourself.

Partnership

Partnerships are formed by two or more people who share the business’s profits and losses.

Trust

Trust structures provide significant asset protection and tax benefits, making them a popular choice for asset holding and property investment.

Co-operative

Co-operative structures allow individuals to work together towards a shared goal.

Indigenous Corporation

If you are an Indigenous person looking to establish a corporation, you can register your business as an Indigenous corporation and receive government support.

Joint Venture

A joint venture involves two or more parties entering into an agreement for a specific task or project.

Develop a Business and Risk Management Plan

To ensure your business stays on track and has a clear direction, it’s important to develop a business plan. Moreover, if you’re seeking financial support, a well-crafted business plan is a must-have.

By also creating a risk management plan, you can make informed business decisions and minimise the impact of unforeseen events on your company. This proactive approach can help you navigate any unexpected challenges that may arise.

Register Your Business

There are many aspects of a business that need to be registered, including the following:

Australian business number (ABN)

An ABN is a unique identifier for your business, used by the Australian Taxation Office (ATO), customers, and suppliers. Registering for an ABN is free of charge and is essential for your business.

Business name

A business name is how your customers identify your business from others. If your business name is different from your personal name, you must register it.

Tax registrations for your business

As a business owner, it’s crucial to understand the taxes that apply to your business. Your business type, activities, and turnover determine the taxes you must register for before you commence operations.

Licences and permits

Various licences and permits may apply to your business based on your industry and location. Examples include food licences, zoning laws, and more. Be sure to research which ones apply to your business to avoid legal troubles.

Company

If you opt for a company structure for your business, you need to register it as a separate legal entity.

Trade mark (optional)

By registering your business name and brand as a trademark, you can prevent others from using it, safeguarding your intellectual property.

Get Legal Help

At Business Legal Lifecycle, we understand the risks businesses face when they operate without proper legal compliance and protection. If your business is not set up and protected, it could end up costing you valuable time and money in the long run.

That’s why it’s vital to start off right by taking the necessary steps to establish and protect your business. As legal professionals, we can help you navigate these complexities and ensure that your business is operating within the bounds of the law.

Don’t let legal issues hold you back – let the Business Legal Lifecycle team help you navigate the legal landscape and protect your business. Take our Legal Risk Assessment Test today, explore our Business Legal Lifecycle book, book one of our educational courses today, or, alternatively, simply contact us to discuss how we can help you.

Retirement is a major life event that requires thoughtful planning and preparation. The amount of money you will need to retire comfortably depends on several key factors, including your expected lifestyle, any large outgoing expenses, whether you are single or in a couple, and your life expectancy. In this article, we will explore how to calculate how much money you will need for your retirement and how to set yourself up for a comfortable future.

Calculating How Much Super You'll Have When You Retire

The first step in determining how much money you will need for your retirement is to calculate how much super you will have when you retire if you continue on as you are. The easiest way to do this is to use the moneysmart.gov.au retirement planner. This tool allows you to input your financial information and will provide an estimate of how much super you will have at your desired retirement age.

Calculating the Amount of Super You'll Need

Once you have an estimate of how much super you might have when you retire, you can determine whether this amount is enough to live the retirement lifestyle you want for yourself. To do this, you can use a variety of tools, such as the two-thirds rule and the multiple of 20 rule. Let’s look at these a little closer.

The Multiple of 25 Rule

The “25x Rule” is a method of determining the amount of money needed for retirement by multiplying the desired annual income in retirement by 25.

For example, if the estimated annual income needed for retirement is $60,000 and $20,000 is covered by other sources such as a pension, then $40,000 would need to be covered by personal savings. Using the 25x rule means this person would require savings of at least $1 million.

Try the Two-Thirds Rule

The two-thirds rule states that if you own your own home, you will need roughly two-thirds (67%) of your current income in order to maintain a similar standard of living in retirement. For example, if Julia makes $120,000 p.a., she will need $80,400 a year during retirement to be comfortable. This includes her savings and any income generated after retiring, such as rent from another property, interest on savings, and any money earned from the Age Pension.

The ASFA Retirement Standard

The Association of Super Funds Australia (ASFA) provides a straightforward breakdown of some helpful targets for those looking to retire.

ASFA Retirement Standard	Annual living costs	Weekly living costs
Couple – modest	$43,250	$828
Couple – comfortable	$66,725	$1,278
Single – modest	$30,063	$575
Single – comfortable	$47,383	$907

These can be a great starting point for those looking to figure out how much money they’ll need to retire.

Retirement Planning Tips

Start early

The earlier you start planning for your retirement, the better. If you’re in your 20s, or even 30s you have a fair bit of time to start saving, but if you’re in your 40s or 50s and are just starting to look at your retirement, you have some serious planning to do. Regardless of your situation, now is the time to start saving and start trying to make a difference to your future.

Get help

Planning for retirement can be complex and requires many serious decisions. That’s why it’s a good idea to get help from someone like a financial advisor with expertise in superannuation advice. A financial advisor can help you maximise your savings and provide personalised advice to help you achieve your retirement goals.

Make the most of tax-advantaged retirement accounts

Consider setting up a self-managed super fund (SMSF) to take advantage of the tax benefits.

Diversify your investments

Don’t put all your eggs in one basket. Spread your investments across different asset classes to reduce risk.

Consider property investments

Owning rental property can provide a steady stream of income in retirement.

Seek professional advice

A financial advisor can help you create a retirement plan that is tailored to your individual needs and goals.

Be mindful of government benefits

Be aware of the Age Pension and other government benefits that you may be eligible for in retirement.

Keep your expenses in check

Try to live below your means and save as much as possible during your working years to ensure a comfortable retirement.

Are you a business owner?

Selling your business can be a good idea for retirement planning if the sale price is high enough to provide a significant financial cushion for your retirement. However, it’s important to consider the following factors before making a decision:

Timing: If you’re close to retirement, selling your business may be a good idea as it can provide a lump sum of cash to invest or use for living expenses.
Market conditions: You may want to consider the current state of the economy and the industry you’re in, as well as the demand for businesses like yours, in order to make sure you’re getting a good price for your business.
Alternatives: If you’re not ready to fully retire, you could also consider passing the business on to a family member or key employee, or look for a buyer who wants to keep you on as a consultant or advisor.
Tax implication: It’s important to be aware of the tax implications of selling your business. You should consult with a tax professional to understand the impact of the sale on your retirement income and estate planning.

In short, selling a business can be a good way to provide a significant financial cushion for retirement, but it’s important to consider the timing, market conditions, alternatives and tax implications before making a decision. Find out more about selling your business with the Business Legal Lifecycle book.

Business disputes are an unfortunate reality of the modern world, but they do not have to be detrimental to your business. It is important for business owners and leaders to recognise when a dispute arises and to deal with it diligently from the outset. This involves understanding the underlying causes as well as identifying potential solutions that are beneficial for all parties involved.

Proactively addressing any kind of business dispute is key to preventing long-term damage and restoring critical relationships, both internal and external.

This blog is based on the Dispute Resolution section of Jeremy Streten’s Business Legal Lifecycle book.

What classifies as a business dispute?

A business dispute is a situation in which two parties have opposing opinions that seemingly can’t be resolved. Disputes can arise between businesses, their customers, employees and other stakeholders, and can involve issues such as contracts, service reliability or intellectual property.

They may start out small, but without resolution, they can quickly become major legal battles or acrimonious financial disputes over lost money or assets. As the stakes can be high it is important to handle a business dispute promptly and effectively to prevent the recurrence of the problem or future issues with the opposite party.

Reasons for business disputes

There are several reasons why a disagreement between companies can arise. One of the most common reasons is the breach of contract. For example, a party might fail to supply the number of raw materials as stated in the contract.

Another instance is if a party does not provide a satisfying service. Such service could be maintenance and repairs or distribution of finished products.

It is normal for disputes to exist between two parties. Sometimes these disputes might be simple, and other times they could be very complex and drag out for a long period.

Common causes of business disputes

Business disputes can arise in a variety of circumstances, ranging from disagreement over how to divide profits to misappropriation of funds or assets.

In the context of business partnerships, common sources of disharmony include situations where one partner fails to perform or contribute as needed; fails to adhere to an equitable arrangement surrounding a partner’s exit or has engaged in misconduct through the mishandling of funds or assets.

Many disputes can be contained internally, however, external interventions may be necessary if other processes fail.

It is important to note that finding a quick solution to a dispute is in the best interest of all the parties involved. This is because a long business dispute costs both time and money for all parties involved.

Business Dispute Resolution

Business dispute resolution involves the application of various provisions and processes, as set forth by law, to resolve differences of opinion between two or more involved parties.

Resolving disputes is typically faster and less costly than pursuing business litigation.

Mediation, negotiation and arbitration are all mechanisms used to resolve business disputes, with each having its own methodology for achieving resolution.

In mediation, the mediator leads discussions between both sides in an effort to encourage mutual understanding and agreement.
During negotiations, the parties will attempt to reach a solution on their own accord without involving an outside party.
And lastly, arbitration uses a third-party arbitrator who hears both sides’ arguments and then renders his or her decision on the issue at hand.

Business dispute resolution helps foster a collaborative environment that can help preserve relationships between involved parties while also providing cost savings and improved outcomes over traditional legal proceedings.

Business Dispute Resolution Process

Resolving a business dispute often requires following one of these processes above– this will ensure proper handling of the dispute and help maintain the business relationship that exists.

A common business dispute resolution process will trace the following steps:

#1. Analysing and Understanding the Problem

The first step to resolving a dispute is carrying out an analysis to understand the reason for the dispute. A proper understanding of the issue will provide a roadmap to solving the problem. This might demand reading the contractual agreement. At times, the contract may provide a means to solve a dispute.

#2. Maintain Communication With the Other Party

When involved in a business dispute, constant communication is key to resolving issues. Note that for communication to be effective, it must be based on a genuine need to find a solution. This involves the willingness to negotiate and compromise.

#3. Document Agreement

In a situation where negotiations are successful, it is important to document the agreement reached. Before documentation, all parties should have signed the agreement. Also, all parties should have a copy of the signed agreement.

#4. Seek the Assistance of a Third Party

A third party such as mediators or conciliators can assist in dispute resolutions – especially if it is complex. This mediator/conciliator must be impartial and well-knowledgeable in helping disputing parties reach an amicable agreement.

Small Business Dispute Resolution

Small businesses are just as likely to experience business disputes just the same way large organisations do. The only difference is that while large organisations have different plans to resolve these disputes, a small organisation may not.

As such, even at the starting phase of a business, there should be provisions for resolving disputes. One of the best ways for a small business to resolve business disputes is by seeking mediation or conciliation.

Take a Business Legal Risk Assessment

At Business Legal Lifecycle, we provide business owners with advice and education regarding legal risks. We do this through our legal risk assessment, which business owners can undertake.

This quiz will help determine the areas where a business may be prone to legal risks. Along with this assessment, we also carry a book, “The Business Legal Lifecycle”. With the help of this book, a business owner can build a company with a headstart on navigating legal risks.

At Business Legal Lifecycle, we want you to be informed about the legal requirements in regard to your business, and part of this is learning why you shouldn’t write your own will.

No one wants to spend time thinking about what will happen after they die, but taking the time to draft a will with a lawyer is important to ensure that the people you love are taken care of – and know what your wishes are – after you’re gone.

Here are some of our top reasons why writing your own will is a bad idea, and some points to look out for when drafting a will with a legal professional.

Business Legal Lifecycle educates business owners on their legal risks and makes legal advice accessible to all business owners.

We deliver this through our Legal Risk Assessment , Jeremy Streten’s Amazon best-selling book The Business Legal Lifecycle (in Australia, United Kingdom and the United States), and our Educational Courses.

We are the only legaltech website that actually tells you what you need to do to reduce your legal risks and we empower you with the knowledge and understanding of what you need so you can work with your lawyer with confidence.

Can I Write My Own Will?

Yes, in Australia, you can write your own will by purchasing a ‘Will Kit’. Although you can readily find Will Kits, the team here at Business Legal Lifecycle recommend against using one.

They may not work for your individual situation, and if there’s any contest over the will in court, the fact that you used a kit could be held against you, as they are not as detailed and stringent as a will done by a lawyer. In fact, there are a host of reasons that you shouldn’t write your own will, and we will run through them here.

How Important Is a Will?

A will states where your assets will go when you die. If you have a valid will, your executor goes through the probate process and distributes your estate in accordance with what is written in your will. If you jointly hold property with another person, such as a spouse, then probate is not required unless substantial assets are held under only one name.

However, there are many common situations where having a valid will is necessary to distribute your estate correctly and take care of your family and loved ones.

If the probate court deems your will to be invalid, then there will likely be a significant delay in distributing your estate. Additionally, increased legal and court costs may create financial hardship or emotional anguish for your family members.

Many people believe that their situation is uncomplicated and that they can draft a DIY will; however, consider the following situations to decide whether they might apply to you or someone you know.

8 Reasons Why Writing Your Own Will Can Be a Bad Idea

It can complicate the continued operation of your business

If you want your business to keep running after you die, then you need to think about and plan for what will happen to it. This includes appointing someone as executor in order to carry out your wishes. You can do this by writing a will with the help of a lawyer.

If you don’t have a valid will that appoints someone to take over your business and manage it, there could be expensive consequences, like wasted rent and staff costs. Without a validly appointed manager, your family may suffer needlessly and your other assets could be in jeopardy.

There are strict requirements for signing and witnessing wills

To ensure your will is valid, it must be signed and witnessed correctly. If either of these requirements is not met, your will may be invalid.

Your will only becomes effective when it includes all the assets and liabilities you will have once you die. If not, your loved ones may struggle to uphold your final wishes.

If you add to your will or make any changes after it has been made, the will may become invalid and unable to deal with your assets effectively. Speaking to a legal expert will help mitigate any issues with the validity of your will.

If your homemade will is lost or can’t be found, it may create legal issues down the road

After signing a will with a lawyer, they may offer to keep it in their custody or provide you with copies. They may also advise you of other services or methods to safely store your will.

The lawyer will keep an original copy of your will or an electronic copy. This way, if you lose the original, your family can go to court and ask that the wishes in the copy be accepted as valid.

If there are no certified copies of the will, your family will have to go through a more extensive and expensive process of applying to the probate court for a grant of administration, and this is one reason that writing your own will might be a bad idea.

If you and your partner are not married, it can get complicated

If you are in a de facto relationship, rather than purchasing property as joint tenants, you and your spouse may have decided to buy it together with equal (or unequal) shares.

If you do not have a professionally validated will, your property might not get transferred to your de facto partner or children as intended. Also, other people could make claims to your estate, which would be expensive for your loved ones to litigate.

Writing your own will can cause future wills to be thrown into contention

If you made a will when you were younger, perhaps leaving all of your estate to your then partner in a fleeting moment of passion and your circumstances have since changed, creating a new will does not automatically revoke your old one.

If your latest will is invalid, the court may rely on your previous will instead, which could result in other people receiving assets from your estate than you had planned. This would require costly and lengthy court proceedings for your grieving loved ones.

If you own property solely in your name, it is hard to transfer ownership with an invalid will

We’ve all lived lives before settling down, and some of us even manage to buy property while single.

Without a will or any valid appointees, if you die owning property solely in your name, there are many people who could be eligible to apply to the court to take control of your property. This person may not necessarily manage your property and estate as you intended and, as a result, your partner most likely will have to participate in costly court proceedings to gain ownership of the property.

Leaving superannuation in your will can complicate things

In most circumstances, your superannuation will be paid out to whoever you have nominated in your policy, regardless of what is stated in your will.

If you die with an invalid will, your family will have to jump through more hoops to access your superannuation. Despite the fact that you can express in your will who you would like to give your estate to, there is only a limited number of beneficiaries who are legally allowed to receive superannuation benefits once you have passed away.

Leave it to the experts

Hiring a lawyer to help you prepare your will has many benefits, including:

Ensuring that your Will meets all the legal requirements for it to be valid where you live.
Keeping your specific circumstances in mind as they work with you to write your will, and include any relevant terms or clauses.

If you’re an Australian business owner, we can help. Business Legal Lifecycle delivers expert advice through our Legal Risk Assessment, Jeremy Streten’s Amazon best-selling book The Business Legal Lifecycle (in Australia, United Kingdom and the United States), and our Educational Courses.

What to Watch Out for When Drafting a Will With Your Lawyer

Here are some top points you’ll want to include or at least consider when drafting a will with your lawyer.

Assets

One of the most critical aspects of creating a will is determining how your assets will be allocated upon your death. This can be a difficult task, as you and your lawyer need to consider both your current financial situation and your future needs.

When allocating assets in your will, it is essential to consider your beneficiaries. Make sure to list all the people you want to receive assets and their relationship to you. You should also consider any special circumstances that may apply, such as if a beneficiary has medical bills or is disabled.

Once you have determined your beneficiaries, you and your lawyer will decide what assets they will receive. You can leave specific items to specific people or allocate a certain percentage of your estate to each beneficiary. Whichever approach you take, your lawyer will ensure that your wishes are clear and unambiguous to avoid any confusion or conflict after your death.

Guardianship of children

Guardianship of children is a legal arrangement in which a person or persons are granted the authority to make decisions on behalf of children under the age of 18.

In the event that both parents die, the guardianship provisions of a will come into effect and the guardian(s) will be responsible for the care and welfare of the children. The guardian(s) will have the authority to make all major decisions on behalf of the children, including their education, medical care, and religious upbringing. Be sure to discuss this with your lawyer.

Power of attorney

Granting someone power of attorney allows you (the principal) to choose someone or multiple people you trust (i.e. the attorney or attorneys) to make decisions on your behalf during your lifetime.

Setting up a POA is fairly simple and can be done by getting your lawyer to include the appropriate language in your will. They’ll need to name your chosen POA and clearly state their powers. Naming an alternate POA is also a good idea. Once the document is signed and witnessed, your POA will be legally binding.

Appointing an executor

When writing your will with your lawyer, you will appoint an executor to manage your estate and fulfil your final wishes. The executor will ensure your estate is properly managed and distributed according to your wishes. When choosing an executor, it’s essential to select someone who you trust to handle these responsibilities. You should also consider whether the executor lives close by and is familiar with your financial affairs.

Picking beneficiaries

One of the most critical aspects of creating a will that you will consider with your lawyer is choosing who will inherit your assets. This may seem daunting, but some basic considerations can help make the process much easier.

First, you must consider who is most important to you and who would benefit most from your estate. For example, if you have children, you may want to provide for their future by leaving them with financial support. Alternatively, if you have a spouse or partner, you may want to ensure they are taken care of after your death.

Once you have identified your key beneficiaries, you must consider how to distribute your assets fairly. This may involve taking into account any debts or other financial obligations that your beneficiaries may have.

Funeral arrangements

When making funeral arrangements with your lawyer, you will need to consider a variety of factors, such as your budget, religious beliefs, and any special requests. Once you have made your decisions, you will need to communicate your wishes to your lawyer and executor or designated loved one. You may also want to consider prepaying for your funeral expenses. This will ensure that your arrangements are carried out exactly as you have planned and will help to relieve your loved ones of financial burden.

Cherished items

We’ve spent our lifetimes acquiring possessions. Now that it’s time to write your will, you must decide how best to allocate your cherished items. Here are a few things to keep in mind when allocating your cherished items with your lawyer.

First, consider who would appreciate the item the most. If there is someone in your life who has always admired a particular item, they would likely be thrilled to receive it as a gift.

Second, think about who would make the best use of the item. For example, if you have a piece of art that you love, it might be better to leave it to someone who will put it on their wall and enjoy it every day.

Finally, don’t forget to consider sentimental value. There may be an item that doesn’t have much monetary worth but means a great deal to you or a loved one. In this case, it’s important to choose someone who will appreciate the sentimental value and take good care of the item.

Selecting charities

Many people choose to donate to charities in their will. There are a few different ways to do this. The most common is to simply list the charity by name in your will. You can also specify a specific amount of money or percentage of your estate that you want to go to the charity. If you have certain assets that you would like to donate, such as property or stocks, you can specify these in your will as well. You may also choose to set up a charitable trust in your will. This allows you to specify how the assets in the trust should be used by the charity and your lawyer will ensure to help you draft these in a legally binding way.

Business Legal Lifecycle Can Help You Ensure that Your Business Legacy Is Taken Care of

When running a business, there are a huge variety of legal requirements that you need to understand, and that’s where Business Legal Lifecycle comes in.

Business Legal Lifecycle is the only legaltech website that keeps you fully informed on what you need to do to reduce your legal risk, including how to draft a will that is legally enforceable and that covers all aspects of your business legacy. We empower you with the knowledge to work with your lawyer and have the confidence that your business will continue to run long after you’re gone.

Take a look at our Legal Risk Assessment , Jeremy Streten’s amazon best selling book The Business Legal Lifecycle (in Australia, United Kingdom and United States), and our Educational Courses.

What is business litigation?

Business litigation is a type of dispute resolution that involves resolving disputes between businesses or between businesses and individuals. These disputes can be over contracts, property, employment, or other issues. Businesses may choose to resolve their disputes through arbitration, mediation, or litigation.

Specifically, business litigation is the process of taking a dispute to court and having a judge or jury decide the outcome. This type of dispute resolution can be expensive and time-consuming, but it may be the only option if the parties are unable to agree on a resolution.

How to avoid litigation in business

Starting a business and ensuring its growth is an endeavour that requires proper planning. As such, it’s not enough to only have the strategies to ensure growth and expansion, but also strategies to ensure compliance in all legal aspects involved in your business’s industry.

Understanding the laws applying to a business is crucial to a company’s longevity. This is because failure to have a proper grasp of business laws can result in legal problems, which can often cost a lot of money. These legal problems can harm the public image of a company and, in some situations, result in the closure of a business.

Primarily, this article will discuss the business laws every organisation should be familiar with to avoid running into legal problems. It will also consider how to navigate business litigation.

Business Laws regarding litigation

Licensing

Before an individual or a group of people can start a business, they have to acquire a permit from the government. Depending on the country and industry, there are different penalties for failing to obtain a permit from the appropriate governing bodies.

Employment

There are different legislation requirements regarding how a business should treat its employees. This involves the kind of working environment a company creates, minimum wage, and access to compensation.

Tax

Australia has tax laws that every company must abide by. Failing to comply with these laws can attract severe consequences, as stated in the legislation regarding tax payments.

Intellectual Property

In many cases, there are regulations, otherwise known as copyright laws, that determine the use of a person’s intellectual property. This means that before a company can use copyrighted material, it must seek permission from the copyright holder.

Contract Law

When parties sign a contract, it becomes mandatory that they fulfil their part of the deal.

Types of business litigation

Breach of contract

Breach of contract is a common type of business litigation. This happens when a company signs a contract and then fails to hold up its end of the bargain. This can cause the party on the receiving end to sue the company. In such a situation, the company will have to pay the aggrieved party for damages.

Employee dispute

If an employee feels that the company where they work has violated their rights, they can file a lawsuit. The violation of an employee’s rights ranges from harassment and discrimination to wrongful termination. It could also involve disapproved sick or maternity leave or a salary reduction.

Intellectual property theft

A company commits the offence of intellectual property theft when they do not obtain consent from a copyright owner before using their creative work. The creative work could be in the form of an image, text, or even audio. If found guilty of this offence, the court may order the company to desist from the use of the intellectual property. In addition to this, the company might pay for damages.

Product liability claims

A product liability claim occurs when a manufacturing company produces and sells a defective product that causes harm to buyers. Customers who sustain injuries from using the faulty product can sue the company for damages. This often results in the organisation compensating the affected users for the defective product.

Partnership/shareholders dispute

Partnerships/shareholder disputes often take place when partners or shareholders cannot agree on certain areas. Consequently, a partner or shareholder may take the case to court. Some of the areas that can lead to disputes among partners or shareholders include the use of funds and assets. It could also involve how the company operates.

How to avoid litigation in business

Well-drafted contracts

A well-drafted contract can help avoid disputes that lead to litigation. This is because a well-written and detailed contract will clearly state the obligations of all the parties. It will also provide what the outcome would be if a party refuses to carry out their part of the deal.

Proper documentation of agreements

Documentation of every agreement with other businesses or individuals is crucial in preventing business disputes and litigation. Proper documentation means keeping a record of important files such as receipts, emails, contracts, as well as agreement documents.

Ensuring a safe working environment

The safer the environment, the fewer the chances for an employee to be put in any form of danger. Consequently, this can eliminate cases where an employee files a lawsuit for sustaining an injury as a result of a hazardous work environment.

Establishing business policies and strategies

Policies help prevent malpractice or misconduct. A company, through its policies, can prevent misconduct such as harassment and racial/gender discrimination.

Seek legal advice

A legal practitioner specialising in business can help provide the advice your business needs to avoid litigation. For help seeking legal advice, please contact us for guidance.

We can with business litigation & legal requirements for your Business

Always remember– this resource includes only a brief overview of legal considerations regarding business litigation in Australia. To keep your business safe from legal trouble, it’s best to read further into business courses or to work with professionals.

Business Legal Lifecycle is the only LegalTech website that keeps you fully informed on what you need to do to reduce your legal risk, empowering you with the knowledge to work with your lawyer and have the confidence to run a successful business.

Take a look at our Legal Risk Assessment, Jeremy Streten’s amazon best-selling book The Business Legal Lifecycle (in Australia, United Kingdom and the United States), and our Educational Courses.

If you are thinking of starting a business in Australia, it is important to understand the various legal requirements you will be subject to. There are a wide variety of regulations and laws that you must comply with, and the legislative bodies that govern these have made it clear that ignorance is not an excuse for failure to comply. In this article, we discuss the most important legal requirements for businesses in Australia. We will also provide some tips on how to stay compliant with the law.

Business Legal Lifecycle educates business owners on their legal risks and makes legal advice accessible to all business owners.

We deliver this through our Legal Risk Assessment , Jeremy Streten’s amazon best selling book The Business Legal Lifecycle (in Australia, United Kingdom and United States), and our Educational Courses.

Some of the Most Common Legal Requirements for a Business in Australia

NOTE: This is not an exhaustive list and only highlights some of the most common legal requirements for businesses in Australia. Seek professional legal guidance when setting up your business or seeking to ensure your existing business is compliant with all legal requirements.

Business Registrations

Anyone who wants to run a business in Australia needs to comply with some specific registration requirements, which differ depending on the type of business you will be operating.

Depending on your situation, you will need to register:

Your business name
For taxes (including GST, TFN, PAYG withholding, and ABN)
For various licences and permits
Your company (companies are subject to different laws and must be registered as legal entities)
Any trademarks you own
A domain name for your website
An Australian business number (ABN)

You can find out what registrations your business needs on the business.gov.au website.

Fair Trading Laws

One of the most important legal requirements for businesses in Australia is to comply with fair trading laws. These laws are designed to protect consumers from unfair or misleading practices. If you engage in any conduct that is deemed to be unfair or misleading, you could face legal action. This includes making false or misleading claims about your products or services.

Contracts

Another crucial legal requirement for businesses in Australia is to have contracts in place. This includes contracts with your employees, contractors, suppliers, and customers. The contract should set out the terms and conditions of the agreement, and it should be signed by both parties. It is also a good idea to have a lawyer review any contract before either party sign it.

Privacy Laws

Privacy laws are another vital aspect of the legislature to be familiar with as a business owner in Australia. These laws are designed to protect the personal information of individuals. If you collect, use, or disclose personal information, you must comply with the Privacy Act 1988. This includes ensuring that you have a valid reason for collecting any information, and that you take steps to safeguard it from cyberattacks.

Employment Laws

If you employ staff in Australia, you must comply with employment laws, including:

Paying your employees the correct wages
Making sure to abide by work health and safety requirements
Having workers’ compensation insurance for each employee
Not acting in a way that could damage an employee’s reputation or cause mental distress
Adhering to any working with vulnerable people or children requirements

This includes providing full and part-time employees with a written contract of employment (although it is still recommended to also provide casual employees with a contract).

Anti-Bullying Laws

In Australia, there are also laws that protect employees from bullying. If you allow bullying to take place in your workplace, you could be held liable. This includes if you knew about the bullying and did nothing to stop it. You can find out more about anti-bullying laws on the Fair Work Commission website.

Unfair Dismissal

If you employ staff in Australia, you must also comply with unfair dismissal laws. This means that you can only dismiss an employee for a valid reason, such as misconduct or poor performance. If you dismiss an employee without a valid reason, they may be able to take legal action against you, which can be an arduous and expensive process.

Contractors

If you engage contractors to work for your business, you must also comply with certain legal requirements. This includes ensuring that they are properly licensed and insured. You should also have a written contract in place that sets out the terms of the agreement. Make sure you understand the difference between an employee and a contractor.

The franchise code of conduct

If your business is a franchise or you plan on starting a franchise, you must abide by the Franchising Code of Conduct.

Intellectual Property

If you have any intellectual property, such as a trademark or copyright, you must also comply with the relevant laws. This includes registering your intellectual property with the relevant authorities. Failure to do so could result in legal action being taken against you.

Importing and Exporting

This includes ensuring that you have a valid licence to do so. You must also declare all goods that you are importing or exporting to the relevant authorities.

Environmental Protections

Environmental protection laws ensure that businesses take steps to minimise your environmental impact. Failure to do so could result in legal action being taken against you by relevant environmental protection agencies.

Marketing Compliance

If you engage in any form of marketing, you must also comply with the relevant laws. This includes ensuring that all claims made in your marketing material are accurate and can be substantiated. You must also ensure that your marketing material does not contain any misleading or deceptive content.

Terms and Conditions

If you sell any products or services, you must have a set of terms and conditions in place, as well as a privacy policy, and returns policy. This includes specifying the price of the product or service, as well as the terms of delivery. You must also ensure that your terms and conditions are fair and comply with the law. Failure to do so could result in legal action being taken against you.

We Can Help You with the Legislative Requirements for Your Business

Remember— these are just some of the legal considerations businesses must address when operating in Australia. To keep your business safe from legal trouble, your best bet is to work with professionals.

Business Legal Lifecycle is the only legaltech website that keeps you fully informed on what you need to do to reduce your legal risk, empowering you with the knowledge to work with your lawyer and have the confidence to run a successful business.

In this article, we look at how to mitigate some common legal risks in business.

The success and growth of your business depend on being on the right side of the law. If your business is not compliant with official regulations, it may face litigation.

Consequently, this could cause your organisation to spend a lot of time and money fighting legal battles and paying heavy fines. That is why as a business owner, it is vital to prioritise the implementation of an effective legal risk management system.

Business Legal Lifecycle educates business owners on their legal risks and makes legal advice accessible to all business owners. Take our legal risk assessments test to discover your legal risks.

Common Legal Risks for Businesses

Contract Risks

Errors in and misunderstandings of contracts are common areas in which businesses face legal risk, such as when an organisation breaches a contract it entered. Common contract risks are:

Failure to review a contract, resulting in misinterpretations of its enforcement
Agreeing to certain indemnities that might lead to unexpected liabilities
Regulatory risks, where a contract is developed but doesn’t meet local legislation
Failure to meet legal deadlines
Inaccurate representation of products or services

A contract management system will help to ensure your contracts are managed effectively and that they are enforced in a way to minimise legal risk.

Infringement of Intellectual Property

An organisation could face a lawsuit for infringing on other businesses’ intellectual property. In most cases, this involves stealing or copying another company’s intangible assets, accidentally or otherwise. These intangible assets include trade secrets/copyright materials and trademarks.

Violation of Employment Laws

There are many employment laws, and they primarily serve the purpose of safeguarding the rights of employees. Specifically, they ensure that employees do not experience wrongful termination, harassment, or any form of discrimination in the workplace. As such, there could be an impending lawsuit if a business owner breaks or gives room for others to violate these employment laws. These cases can be lengthy and expensive, not to mention they will harm a company’s brand.

Product Liability

Product liability comes into play when a company’s product or service endangers or causes harm to customers – something we all want to avoid. However, it is important to note that federal and state laws are stringent against selling products or services capable of endangering customers.

Based on this, customers negatively affected by a product or service can file a lawsuit against the company. This can result in the company paying for damages if the affected customers can successfully convince the court.

Violation of Environmental laws

It is a legal duty for businesses to comply with environmental laws. These laws help prevent actions that threaten our ecosystem.

Some businesses that are more susceptible to changes and updates in environmental laws include oil refineries, chemical manufacturing companies, etc. Breaking an environmental statute can lead to heavy fines and loss of public support as the environment is a hot topic in today’s climate so be sure to do your research and talk to a specialist in this area.

Violation of Tax Laws

Tax law violation is one of the most common legal risks that businesses face. Tax law is incredibly complex, and as such, figuring out all the obligations your business is subject to can be overwhelming and easy to misinterpret.

Tax-related offences can attract severe penalties, which include heavy fines or even prison sentences, so be sure to do your research and talk to your accountant or a specialist tax lawyer.

6 ways to mitigate legal risks for your business

If you need help mitigating legal risk for your business, then take our legal risks assessment test today.

#1. Ensure you understand the contracts you sign

As a business owner, you must only agree to contracts you genuinely understand. This might require hiring a legal team to review the agreement for you.

There are various other steps that you can take to avoid any inadvertent contract breaches, such as:

Automation of workflows
Reminders for milestones and time-sensitive obligations
Regulation of who has access to bolster security
Encryption of data
Keeping track of changes to documents
Using secure e-signature systems

#2. Keeping On Top of New and Changing Regulations

Staying up to date with new or updated regulations and legislation can help avoid serious legal risks for you and your business.

#3. Ensuring Proper Business Conduct

Making your business’s codes of conduct and ethics known to your employees encourages proper business conduct. For example, you can achieve this by creating an employee handbook that explains your company’s rules and policies. Doing this should reduce discrimination, harassment, and other such issues to their bare minimum.

#4. Compliance with Environmental Laws

The best way to avoid environmental lawsuits is by implementing a detailed management plan that helps you abide by environmental laws.

#5. Be Sure to Abide by All Relevant Tax Laws

The best way to avoid committing tax-related offences is to track your business’s finances and accurately file your tax returns when due. Consequently, this may demand hiring a professional accountant.

#6. Hire a Legal Team

Hiring a legal team is one of the most effective means of mitigating legal risks. A legal team can help notify you of any threats before they occur and can help guarantee that your business meets all current legal requirements.

Does Your Business Need Help Minimising Legal Risk?

Having the proper knowledge of managing and mitigating legal risks is crucial to the success of your business. This is why it is essential to get the right advice.

Founded in 2016 by Jeremy Streten, Business Legal Lifecycle was initially developed out of Jeremy’s frustration with the law being reactive and costing business owners millions of dollars. This frustration led to the development of the Business Legal Lifecycle concept to allow business owners to be more proactive in their approach to legal risks.

Now expanded to the United States and United Kingdom, the Business Legal Lifecycle has the solutions to ensure that you know the legal risks in your business.

We help businesses reduce their legal risks in plain English so that it is easy to understand.

If you want to mitigate legal risk for your business, take our legal risks assessment test today.

How are you going to enforce a smart contract? What happens if someone finds a way around the contract? The proliferation in smart contracts has been immense recently and the question that often gets asked is how are you going to enforce them. The hope is that you won’t have to enforce the contract given their nature but there are also circumstances where people try to get around those rules. This article will explain what to do to enforce a smart contract

What is a smart contract?

These are simple programs stored on a blockchain that run when predetermined conditions are met. This means that no party to the contract has to do anything to complete the contract. For example you could have an insurance contract that pays out automatically when a certain weather event occurs in an area. They can also automate workflows triggering the next action when conditions are met.

When might you need to enforce it?

The way that smart contracts are drafted means that ordinarily you will not have to enforce the contract as they are self executing. This means that when an event happens the contract is automatically enforced meaning that enforcement is not necessary.

However there are always going to be situations where a smart contract can’t execute (or may be prevented from executing) these include:

The smart contract was not properly drafted or was not appropriate for the circumstance.
A challenge by one of the parties to the terms of the contract.
Insufficient funds to pay the smart contract.
Hackers who modify the code.

How would you enforce a smart contract?

Of course, there are always to prevent these risks from occurring and it is hoped that they will not arise. If one of these circumstances (or something we have not considered stops a smart contract from self-executing) then the parties will have to rely on either negotiating between themselves or going to the courts and lawyers to enforce their contracts. Obviously this is not what the parties want so it is important that you get advice from a lawyer before entering into a smart contract to ensure that it works the way you want it to work.

This is an area that we will be watching closely so be sure to subscribe to our newsletter.

How does the Business Legal Lifecycle work with Web 3.0?

The law currently treats web 3.0 transactions and disputes just like a normal dispute. Therefore our Legal Risk Assessment will help you to spot the legal risks in your business. The assessment will actually save you money in the long term by empowering you with the confidence and knowledge to prevent the legal risks in your business. You can then go to your lawyer to reduce your legal risks to prevent legal risks within their business and prevent so many problems that commonly afflict small to medium sized businesses.

Get your Business Legal Lifecycle Legal Risk Assessment by clicking below.