How to protect your business in a recession

Jun 28, 2023

Here are proactive steps you can take as a business owner to safeguard your business during a recession. In this post your we explore some valuable strategies and insights to help protect your business during a recession and how our Business Lawyers offer essential assistance.


Structure your business for resilience

How your business is set up is the first area you should review. The structure you ran with when you first established your business may not be the best option for you now. A company’s legal structure needs to be both robust and adaptable, and if it isn’t, the business is built on unstable foundations and open to creditor claims.


How our Christchurch Business Lawyers can help

Together we’ll explore the most suitable legal entity for your business. Changing legal entity can be a way to benefit from liability protection and carry tax advantages. Consulting with a law firm helps to navigate the complexities of business structures and select the best business structure for your unique circumstances.


Cashflow

Successful business owners needs to have a strong understanding on their cashflow and their business’ financial position. One way to increase your cashflow is by having terms and conditions of trade with your clients. This document will outline the work you do for them, what your responsibilities are, your fee, fee enforcement provision and disputes resolution options.


How our Christchurch Business Lawyers can help

Our experienced Christchurch Business Lawyers can help by drafting bespoke terms and conditions of trade. Bespoke terms can reduce the chances of any fee disputes and other disputes further down the track.


Review the commercial lease

Commercial leases typically represent a significant portion of a business’ expenditure, so during a recession and when the potential for revenue to be negatively impacted. It’s crucial to review and renegotiate commercial lease terms to minimise costs to regain financial stability. 


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How a Business Property Lawyer can help

By carefully examining the terms of your commercial property lease, a Business Property Lawyer identifies the opportunities available to you for renegotiation or lease restructuring while ensuring you remain compliant to legal obligations.  

 

Contract review and negotiation

Reviewing and renegotiating existing contracts with suppliers, vendors, and clients can be a strategic move during a recession so the contracts better align with your financial goals and limitations. For example, this can include revising payment terms, debt recovery and credit control procedures or modifying delivery schedules.


How a Contract Lawyer can help

A Contract Lawyer analyses the existing contracts the business is bound by to ensure the terms and conditions work to your advantage while maintaining the essential working relationships.


Contact us today for a free, confidential no-obligation chat about how we can help your business. Click here or call 03 379 1740.

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Learn Shareholder Agreements

22 Apr, 2024
A Shareholder Agreement is an essential legal document for any business owned by more than one person (not being their relationship partner) It’s a legally binding agreement between shareholders or business partners to establish a framework of how the company should be operated and outlines the rights, obligations and roles of the shareholders when (not if) one of the eventualities occur. What is in a Shareholder Agreement NZ? Shareholder Agreements include, but are not limited to covering off: One of you are: Dying Suffering total permanent disability Suffering trauma Waiting to retire You started fighting and neither want to leave If leaving how a fair price for your interest is fixed What happens if the others refuse to buy you out What happens if you are leaving and have money tied up in the business Controls around hiring/firing, borrowing, extending credit and changing business directors etc Why do you need a Shareholders Agreement in New Zealand? Consider a Shareholders Agreement as the bedrock of a business structure ; without it, the business’ foundation becomes precarious. It ensures shareholders are treated fairly and their rights are protected, whether from internal conflicts to ambiguity regarding share valuation and shareholder roles. Essentially, it serves as a proactive measure to avoid potential crises and gives structured processes to stop disagreements escalating and avoid complications. 
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Rosa Bellolio Roth: Leading the Future of Weston Ward & Lascelles

18 Apr, 2024
Weston Ward & Lascelles, a law firm with a storied history spanning 140 years in Christchurch, is thrilled to announce a significant milestone in its leadership evolution. Rosa Bellolio Roth, previously a senior associate and a vital member of the litigation team, has been promoted to Director, marking a new chapter in the firm’s legacy. Rosa’s journey with Weston Ward & Lascelles has been marked by dedication, expertise, and a deep commitment to justice, particularly within the realm of family law. Her promotion comes at a pivotal time as the current partners, seasoned veterans nearing retirement, are passing the torch to ensure the firm’s continued growth and excellence. In her new role, Rosa will maintain her influential position within the litigation team while embracing increased responsibilities. This transition is part of a strategic plan, with one of the current partners beginning to scale back her hours to mentor Rosa in taking the helm of the litigation team. Rosa's vision extends beyond maintaining the status quo. She is committed to expanding the business, with a special focus on strengthening the family law team. This initiative has already seen the addition of a new PA and a law graduate, with plans to welcome a junior solicitor in early 2024, reinforcing the team’s capacity to deliver top-tier legal advice and access to justice for their clients.
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