These rules provide a solid framework to follow, guide employee behavior and ensure compliance with the law to safeguard the company from legal and operational risks.

Here are some policies to put into writing as soon as you get your business up and running.

1. Privacy policy

A privacy policy is a necessary legal document that discloses your data collection and processing activities. As soon as your startup begins collecting customer or employee data – whether through your website or online forms – you become responsible for ensuring proper management and protection of that information.

Safeguarding customer data is crucial. Small companies often lack the resources to defend themselves against cyberattacks. A study revealed that only 20% of small businesses have a security unit to handle such threats, compared to 62% of bigger organizations.

Leaking sensitive customer data can lead to identity theft, fraud and financial loss for affected customers. A comprehensive privacy policy must detail how you gather, store and use data, ensuring compliance with data privacy laws. This builds customer trust and safeguards against potential legal disputes.

Key considerations for your privacy policy include:

• Declaring what data is collected, including names, emails and purchase histories
• Explaining how the data will be used and shared
• Providing options for customers to access or delete their data
• Updating your policy as the business expands or regulations change

2. Employee policy and procedures

Employee policies describe how all employees are expected to behave in the workplace. A lack of clear communication on these procedures can lead to consequences such as diminished employee morale, noncompliance and even expensive legal fees, making workplace policy a vital part of startup success.

An extensive guideline touches on code of conduct, dress codes, ethics, substance use and grounds for disciplinary actions. Big-name companies usually have a human resources department to handle employee policies and procedures in the form of a handbook. Startups can also emulate this by providing an employee handbook that compiles these policies into a single, accessible document.

Here are important elements to include:

• Sexual harassment prevention
• Social media and device usage guidelines during work hours
• Telecommuting and flextime rules
• Processes for addressing disputes or complaints

Establishing these guidelines reinforces the organisation’s professional environment and promotes accountability and respect from day one.

3. Payment, return, and refund policy

Your startup thrives on product and service sales. However, customers may return products or request a refund. A clear payment, return and refund policy covers the necessary details regarding monetary exchanges to avoid confusion and disputes with customers.

Your guideline must outline payment methods, deadlines and penalties for late payments. The return and refund policy should cover the process and requirements for accepting returns and refunding payments to guide both customers and employees. Display these policies prominently where customers can see them – on invoices, contracts or your website.

Consider these elements:

• Accepted payment methods such as cash, credit cards and digital wallets
• Refund eligibility and processes
• Late payment penalties or interest charges
• Time frames for resolving disputes related to payments or refunds

A transparent payment and refund policy protects revenue and strengthens professionalism in the eyes of customers and partners.

4. Leave of absence policy

Startups are usually run by a small team, making it vital to define how leave is managed. A leave of absence policy contains a clear set of established guidelines for managing employee absences and outlines the time off your employees can take for personal or professional reasons.

Startups may not initially offer extensive benefits, but policies for parental leave, bereavement and sick days exhibit your company’s commitment to employee wellbeing.

Points to address include:

• How much paid and unpaid leave is available
• Procedures for requesting time off
• How emergencies or extended absences are handled

Clear leave policies define the expectations toward absences and can help attract and retain top talent, even in the early phases of your business.

5. Intellectual property policy

Many startups develop innovative products or technologies the world hasn’t seen, making protecting your intellectual property (IP) critical. A well-protected asset has the potential to establish monopolies and even limit competition.

An IP policy delineates how intellectual assets are created, used or disseminated within the company. Your IP rules should address the following areas:

• Ownership of work created by employees or contractors
• Procedures for filing patents, trademarks or copyrights
• Confidentiality contracts to prevent leaks of proprietary information

A formalised IP policy provides legal parameters that safeguard your company’s innovations and ensure your startup retains ownership rights over unique contributions.

6. Workplace health and safety policy

While startups don’t generally operate in high-risk environments, a dependable health and safety policy is still essential. This guideline helps ensure a safe workplace for your employees. It outlines procedures to follow when accidents, emergencies and workplace hazards occur.

Essential aspects of this policy include:

• Emergency response protocols
• Ergonomic recommendations for remote workers
• Mental health resources and support

Prioritising health and safety protects your business's greatest assets – the employees – and reduces reliability risks for the company.

7. Social media policy

Social media is powerful for small businesses' brand promotion, serving as an avenue to reach their target market. A professional social media brand increases trust and, as a result, purchasing intent in consumers.

However, the exposure comes with risks if not managed carefully. A secure policy covers both official company accounts and employees’ personal profiles, outlining how employees should represent your brand online.

Your policy should cover:

• Prohibited topics, such as political or religious commentary
• Guidelines for posting photos, videos and branded content
• Examples of acceptable social media engagement that aligns with your brand’s voice

These measures protect your startup’s reputation while empowering employees to be effective ambassadors for your brand.

Policies lay the groundwork for startup success

A strong foundation is essential for any startup. These policies offer guidance that protects your business and its stakeholders, and formalising them is the first step to creating a professional, scalable structure. Realising this smart investment helps ensure your startup’s future success.