CONFIDENTIAL
From: HelpingHand
Date: 31st March 2017
REPORT ON THE LEGAL AND FINANCIAL ASPECTS THAT CAN INFLUENCE
A START-UP BUSINESS
1.0 TERMS OF REFERENCE
This is a report on the legal and financial aspects that can influence the start-up of a business,
in particular my car hire business. I will also explain the impact of the legal and financial
aspects on my business explaining the systems that you would have to put in place to address
these issues.
2.0 PROCEDURE
2.1 Learnt the theory of starting a business
2.2 Research of legal and financial aspects
2.3 Carried out Business plan creation
3.0 FINDINGS
3.1Describe the legal and financial aspects that will affect the start-up of
the business
There are different legal and financial aspects that will affect the start-up of my car rental
business. To begin with, my business will take place in the form of a sole-trader. This
impacts the legal status of my business as I will be able to control the business solely on my
own. It also means that I myself am liable for all debts the business incurs and have to pay
them myself (also known as unlimited liability). Being a sole trader can be quite
advantageous as there aren’t a lot of legal restrictions when it comes to actually starting the
business. It is also easier to carry out decision-making, maintaining control and implementing
changes in the business quickly and efficiently without having to ask numerous amounts of
people for permission beforehand. Another advantage would be that you not need to share out
the profits the business receive and instead all profits can be kept to yourself and used on
your terms. You can also keep financial information such as cash inflow and outflow private
thus having freedom of where your data goes and where it doesn’t. There are however some
disadvantages to being a sole trader such as the risk of unlimited liability (having to pay for
all business debts solely), longer hours working thus less time for days off, can’t share
responsibility with someone else thus can become quite stressed doing everything on your
own and growth of your business can be limited due to the certain amount of capital a single
person can raise.
There are certain legal factors that I would need to consider in terms of my car rental
business. First of all, I would have to consider liabilities (insurance in particular). This is
Page 1 of 7
From: HelpingHand
Date: 31st March 2017
REPORT ON THE LEGAL AND FINANCIAL ASPECTS THAT CAN INFLUENCE
A START-UP BUSINESS
1.0 TERMS OF REFERENCE
This is a report on the legal and financial aspects that can influence the start-up of a business,
in particular my car hire business. I will also explain the impact of the legal and financial
aspects on my business explaining the systems that you would have to put in place to address
these issues.
2.0 PROCEDURE
2.1 Learnt the theory of starting a business
2.2 Research of legal and financial aspects
2.3 Carried out Business plan creation
3.0 FINDINGS
3.1Describe the legal and financial aspects that will affect the start-up of
the business
There are different legal and financial aspects that will affect the start-up of my car rental
business. To begin with, my business will take place in the form of a sole-trader. This
impacts the legal status of my business as I will be able to control the business solely on my
own. It also means that I myself am liable for all debts the business incurs and have to pay
them myself (also known as unlimited liability). Being a sole trader can be quite
advantageous as there aren’t a lot of legal restrictions when it comes to actually starting the
business. It is also easier to carry out decision-making, maintaining control and implementing
changes in the business quickly and efficiently without having to ask numerous amounts of
people for permission beforehand. Another advantage would be that you not need to share out
the profits the business receive and instead all profits can be kept to yourself and used on
your terms. You can also keep financial information such as cash inflow and outflow private
thus having freedom of where your data goes and where it doesn’t. There are however some
disadvantages to being a sole trader such as the risk of unlimited liability (having to pay for
all business debts solely), longer hours working thus less time for days off, can’t share
responsibility with someone else thus can become quite stressed doing everything on your
own and growth of your business can be limited due to the certain amount of capital a single
person can raise.
There are certain legal factors that I would need to consider in terms of my car rental
business. First of all, I would have to consider liabilities (insurance in particular). This is
Page 1 of 7
