It’s one thing to run a business, but it’s another thing having understanding of important terms relating to business.

If you’re in the process of launching a small business, it could be a good idea to get some small business legal advice on important things pertaining to your new business venture.

Even as each business is unique, the issues each business encounters will be unique also. Having a commercial law firm in Chatswood that is well versed on commercial business matters is extremely important for the business’s continual success into the future. You can personalised and professional advice on all your commercial or legal matters.

Here are some of the various terminology used every day in business situations – some you may know but others, you might not.

Debt Recovery

• Relates to a business taking action on recovering monies owed to them by other businesses or people. This becomes important as businesses need to stay on top of their cash flow to pay for other business expenses. Having money owed to you for a long time is not a good position for a business to be in.

Commercial Leases

• This is when a business takes out a lease to rent a physical space in a building or office, to run their business activities from.

Insolvency

• A business can become insolvent when they are in a position where they cannot pay creditors or debts are exceeding assets.

B2B

• Business to business – when your customers are other businesses, it’s called B2B.

B2C

• Business to consumer – when your customers are the end consumer of your product or service, it’s called B2C

Sole trader

• When one person is the exclusive owner of a business. 

Benchmarking

• This is when you measure your business performance against another business.

Business Cycle

• Businesses tend to run in cycles – some periods of time can be busier than others and sometimes they are quiet. It’s good to understand when the peaks occur so you can make the most of this time for your business.

Capital

• Money that has been invested into the business.

Franchises

• Governed by a code of conduct which outlines the rights and responsibilities for franchisees and franchisors, franchises are a business structure which allows specific intellectual property such as brand name, logos, layouts, recipes and formulas to be used.

Commercial disputes

• When two or more parties disagree on something that has happened between them and their businesses and needs to be resolved.

Copyright

• The exclusive legal rights to use certain material and allow others the right to use it.

Diversification

• When new products, services, customers or markets are added to your business portfolio.

Economies of scale

• Cost advantages that your business can get when buying things in bulk.

Market Share

• The portion or percentage of the market that you have in a specific product or service category.

Return on investment

• Working out the ROI on a specific activity lets you understand whether or not it’s profitable to continue it.

Shareholder

• An owner of shares in a company.

Stakeholder

• Anyone who has an interest in or is affected by, a business. This includes, but is not limited to shareholders.

Turnover

• Total sales for a business over a designated time period. 

TY Lawyers Chatswood – Commercial Law Firm Chatswood

If you’re looking for small business legal advice in Chatswood or a commercial lawyer to assist with your business venture, don’t hesitate to reach out to our friendly team at TY Commercial Lawyers Chatswood.

Get in touch today!

Call our office on: (02) 8007 0135 or email us on mail@tylawyers.com.au