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Legal and Financial Risks of Running a Consulting Business

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Being the lead operator of a consulting business in California is a rewarding avenue. But it does come with a bucketload of financial and legal risks. Understanding these risks can essentially nullify them and ensure the long-term operation of your business. 

Here are some key financial and legal perils associated with a typical consultation business operation in Australia. You will want to also be aware of the most important business management practices that you should follow.

Legal risks

Here are the legal risks that one needs to keep in mind – 

Contractual disputes:

Liability for a piece of wrong advice:

Intellectual property conflicts

Breach of Confidentiality or NDAs. 

Failure to comply with regulation

Financial Risks

Here are some of the financial risks that one should remember – 

Issues with positive cash flow

Over Reliance on small amount of clients

Under-pricing your services

Encountering unexpected expenses

Tax compliance issues

Conclusion

To minimize financial and legal issues, consult with financial, insurance, and legal professionals to ensure your company is never in the red. Try maintaining compliance with the law, implementing robust contracts, and prudently managing your invoices and bills. Counteracting these risks can only build a successful and sustainable consulting cover in California. 

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