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Are you operating within the law?


Enterprise North East Trust (Enterprise) warns that new businesses need to be aware of what licences and permits they are required to hold as well as being aware of regulations that might affect their business. It is feared that some small business who do not take advice from business support organisations, such as Enterprise, might not have the necessary licences and permits in place and could run the risk of operating outside the law.

Joyce Duncan, director of operations, of Enterprise comments, "Starting a new business can be a confusing time; not only do you have to finalise your idea, write a business plan and determine how you are going to fund your business but to top it off it is vital that you know what licences and permits you might be required to have in order to run your business. Local authorities have a wide range of regulations which affect small businesses and it may be necessary to obtain their permission in order to carry out certain activities"

Operating without the required licences and permits could result in your business being closed down. Enterprise is able to provide businesses with advice on what licences and permits they need to have in place as well as what regulations they need to be aware of.

Joyce has these tips for anyone who is either thinking of starting their own business or is concerned that they might not have the necessary paperwork in place.

  • What is the local authority?

Within the United Kingdom the local authorities are responsible for providing a range of services to the local community. They also regulate specific activities in order to ensure that businesses and individuals alike comply with local and national legislation. It is important that you understand what this legislation is and how it might apply to your business. The local authority regulates the following areas:

    • Health and Safety
    • Fire authorities
    • Trading Standards
    • Environmental Health
    • Planning.

    • Health and Safety

In terms of health and safety all businesses have a legal responsibility to ensure the health and safety of their employees and other people as well as to protect the environment. As you might expect there are specific types of business activities which have to be registered with the local authority. Such activities include tattooing, pre-school childcare and catering.

You might not be aware that some types of businesses will also need to register their business premises with their local authority for health and safety reasons. This is more likely to be necessary if you are employing staff. The types of premises that require to be registered include offices, shops, wholesale warehouses and launderettes. Once your businesses premises have been registered the local authority will inspect them to ascertain whether or not they are suitable for the business that you are running. At the same time they will also carry out checks in order to identify whether or not you are complying with the health and safety legislation that is relevant to your business.

Some types of business are required to obtain a licence before they begin trading; this includes pet shops, taxi firms and night clubs. In order to apply for a licence the person proposing to run the new business must submit an application and business proposal to the local authority. A background check will be carried out on the person submitting the application. Once a licence has been granted it is usual to expect that it will need to be renewed annually and that your business may be subject to periodic inspections in order to ensure that you are maintaining the necessary standards.

It is worth adding that some businesses are required to register with the Health and Safety Executive as a pose to the local authority. This tends to apply to construction firms, farms and factories.

Ensuring that you comply with health and safety regulations will not only make sure that you are operating within the law but it can also have positive effects for your business. Poor health and safety can mean that accidents are more likely to happen; so complying with health and safety regulations and making sure that work equipment is safe to use should help to avoid accidents which could cost your business a lot of money. Being responsible in terms of your energy consumption will not only help the environment but will also save you money and as anyone who has ever started their own business can attest every little penny helps when you are trying to get your new venture off the ground.

    • Fire Authorities

Everyone knows that fires can have devastating consequences both in terms of tragic consequences when there is loss of life or injury involved but also in terms of interruption to businesses. The Fire Authorities are responsible for ensuring the safety of buildings for those that work in and use them.

According to the Fire Precautions (Workplace) (Amendment) Regulations 1999 employers with two or more employees must have the following in position:

    • A completed fire risk assessment of their premises
    • Fire safety equipment must be provided
    • Full records detailing the testing and maintenance of the fire safety equipment
    • A fire management plan
    • Adequate and well documented means of escape in the event that a fire should occur.
    • Fire safety training arrangements for staff.

The consequences for not complying with the regulations do not only affect the business owner, indeed if a company is found be in breach of the regulations company directors and senior management could face two years in prison.

    • Trading Standards

Most people have heard of the Trading Standards Department and recognise that its role is to enforce legislation which has been put into place in order to promote safe and fair trading for both the consumer and the trader. The Trading Standards Department has a wide remit with more than fifty Acts of Parliament falling under their responsibility. For example if you are setting up or running your own business and plan to run advertising you will need to know what is and what is not acceptable.

    • Environmental Health

When the words Environmental Health Department are uttered most people will automatically think of issues associated with food hygiene however the department also covers environmental protection and occupational health and safety. One aspect of public health and safety that comes under the Environmental Health Department is, quite literally, rubbish. Businesses are required to arrange for the collection, safe storage and disposal of any refuse generated by their business.

    • Planning

As with domestic premises the local authority regulates the development of land and building for business use. For example if you plan to change the primary use of a building in order to run your business from it then you will need to obtain planning permission prior to starting any of the work.

Generally speaking, if you are found to be in breach of any of the rules outlined above it is likely that you would be given time to make the necessary changes in order to comply with the regulations. It should, however, be noted that this definitely would not happen if the non compliance formed a risk to the public.

The examples given in the tips above are not exhaustive and anyone wishing to get specific information in relation to their own business should contact Enterprise on 01467 672500.

Enterprise can provide business advice for all sizes of business on all aspects of running a successful business, including credit control. Enterprise’s experienced business advisors provide a ‘one stop shop’ for all business development needs from start ups to well established businesses. Enterprise can be contacted on 01467 672500 or at www.enetrust.com.

Ends

For further information contact:

Lyndsay Brackenbury
Tricker PR
9 Victoria Street
Aberdeen
Telephone 01224 646491
Direct Line 01224 654086
Mobile 07780 680751
Email
lbrackenbury@trickerpr.com

For further information contact

email: Morag Fraser
Tel: 01467 672565