Business owners are programmed to take risks – but these should always be calculated and analysed before commitment.

Opening four new shops around the UK or contracting with a factory to make a new product that is unproven in the market can mean an exciting life and these certainly act as motivators for success.

Taking risks on statutory regulations though, is not worth considering as if things go sour they could be fatal to the business and the personal life of the owner.

There is little entrepreneurship or intelligence involved in such false economies as:

•    Not putting staff on the payroll
•    Not paying tax or NI deducted from staff
•    Being uninsured – public and employer liability particularly
•    Scrimping on fire, safety and intruder equipment and procedures
•    Not registering as being self-employed
•    Failing to produce company accounts when required

Being legal is relatively simple and need not be over costly or onerous.  Contracting out services moves the administration to others.

Instead of employing a receptionist, a virtual office will handle all calls for a fraction of the cost and without the worry of tax and NI considerations.  A virtual office may also delay the need to acquire premises rendering some fire and safety procedures (and building insurances) unnecessary.  Accountants will not only handle the book keeping but also provide useful business advice as well as keeping things legal.

The message is clear then:  hand over the boring bits and keep the exciting strategic and operational jobs for yourself.  Playing it safe can also be more fun.