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Seven New Year resolutions to safeguard your business for the future
The New Year offers a fresh start for business owners to strengthen their operations and reduce legal risks. At J&P, we've identified seven key resolutions to safeguard your business in 2025. From auditing contracts and employment practices to developing scalable legal strategies, these proactive steps ensure compliance, enhance efficiency, and position your company for growth. Don’t wait for issues to arise — prepare your business for success today.
As the New Year begins, it’s the perfect time for business owners to reflect and set resolutions to strengthen their companies. Legal risks and inefficiencies can hinder growth, but with a proactive approach, you can set your business up for long-term success.
Here are seven resolutions to help you navigate key areas of company law, contracts, debt recovery, commercial property, and employment law.
1. Review and update your contracts
Contracts are the foundation of all business relationships, from clients and suppliers to employees and freelancers. Outdated or poorly drafted contracts can lead to disputes, financial losses, and even reputational damage. This year, resolve to make contract reviews a priority.
Key actions
Start by identifying all the contracts your business relies on, such as client agreements, supplier contracts, NDAs, and employment terms. Check whether they are compliant with current laws and whether they reflect your business’s needs. For example, are your payment terms clear? Do you have robust termination clauses?
It’s also important to consider external factors, such as the inclusion of a force majeure clause to cover disruptions like pandemics or natural disasters. If you frequently engage in similar contracts, consider having templates drafted or reviewed by a solicitor to save time while maintaining legal robustness.
Benefits
By ensuring your contracts are legally sound, you can minimise disputes, protect your business interests, and maintain healthy relationships with your stakeholders. This small investment of time and resources now could save your business from significant headaches later.
2. Strengthen your debt recovery processes
Late payments can derail cash flow and create unnecessary strain on your business. Implementing an effective debt recovery strategy is essential for maintaining financial stability and avoiding prolonged disputes.
Key actions
Begin by reviewing your payment terms in contracts and invoices. They should clearly state payment deadlines and include penalties for late payments. If you often face overdue invoices, consider automating reminders to clients before and after payments are due.
Develop a tiered debt recovery process: start with friendly reminders, escalate to formal letters, and, if necessary, pursue legal action.
Familiarise yourself with tools like statutory demands or small claims court proceedings for swift resolution.
Benefits
With robust systems in place, you can recover debts efficiently while maintaining professionalism. This resolution not only improves cash flow but also ensures your business has the financial stability to pursue growth opportunities.
3. Audit your employment practices
Employment law is constantly evolving, and failure to comply can expose your business to significant risks, including legal claims and reputational damage. A comprehensive audit of your employment practices can ensure compliance and create a positive workplace culture.
Key actions
Review all employment contracts to ensure they are up to date and compliant with current regulations. Contracts should clearly outline roles, responsibilities, benefits, and disciplinary procedures.
It’s also crucial to review your policies on health and safety, discrimination, and harassment. Update your employee handbook to reflect changes and ensure it is distributed to all staff.
Finally, consider whether your business could benefit from flexible working policies to attract and retain top talent. Providing clarity and fairness in your employment practices will strengthen trust between you and your employees.
Benefits
Proactively addressing employment law compliance can help avoid costly disputes while improving employee satisfaction and productivity. It’s an investment in your business’s future.
4. Secure your commercial property interests
Whether you own or lease commercial property, having clear agreements in place is vital to protecting your investment and ensuring smooth operations.
Key actions
For tenants, review your lease agreements to confirm the terms are fair and manageable. Check renewal clauses, maintenance responsibilities, and break clauses to ensure your business isn’t vulnerable to unexpected costs or restrictions.
For property owners, make sure your lease agreements with tenants are clear on responsibilities like maintenance, rent payments, and liability for damage. Additionally, ensure your property complies with zoning laws, fire safety standards, and accessibility requirements.
Benefits
Protecting your commercial property interests reduces legal risks and ensures your business space supports your growth objectives. It also provides clarity and security for both landlords and tenants.
5. Protect your business with a legal health check
A legal health check is a comprehensive review of your business’s legal standing. It ensures you’re compliant with current laws, protects you from risks, and prepares you for future opportunities.
Key actions
Work with a solicitor to audit your contracts, corporate governance, employment practices, and intellectual property protections. Check whether your articles of association and shareholder agreements align with your operational needs.
Review your data protection policies to ensure compliance with GDPR or equivalent regulations, and ensure your tax strategy is optimised for your business structure.
Benefits
This proactive approach helps you identify potential legal vulnerabilities before they become problems. It also positions your business to take advantage of opportunities with confidence.
6. Prepare for growth with scalable legal strategies
As your business grows, your legal needs will evolve. A well-thought-out strategy ensures you’re prepared for expansion while mitigating risks.
Key actions
Create a plan for handling mergers, acquisitions, or restructuring. Develop a clear framework for onboarding new investors, partners, or clients. Review your intellectual property protections to ensure they cover new products, services, or branding.
If you anticipate hiring more staff, prepare scalable employment contracts and policies. Engage a solicitor to create contract templates and compliance frameworks that can adapt to your growth.
Benefits
Scalable legal strategies streamline your operations and allow you to seize growth opportunities with fewer roadblocks, ensuring long-term success.
7. Set up systems to manage legal disputes
Disputes are inevitable in business, but they don’t have to escalate into costly legal battles. Having a clear system in place minimises disruption and ensures fair resolutions.
Key actions
Draft a dispute resolution policy that outlines steps for addressing conflicts with employees, clients, or suppliers. Include clauses for alternative dispute resolution (ADR) methods like mediation or arbitration in contracts to avoid litigation.
Train your management team in how to handle complaints professionally and escalate disputes appropriately. Establish relationships with legal professionals who can guide you through complex issues when needed.
Benefits
By handling disputes efficiently, you can protect your reputation and resources, allowing your business to focus on growth and success.
Take control in 2025
By implementing these resolutions, business owners can strengthen their operations, protect their interests, and position themselves for growth in the coming year.
Please contact us on 020 8290 0333 or email info@judge-priestley.co.uk if you would like expert advice on building a stronger legal foundation for your business.
