Entrepreneurs who do not include legal compliance in their business plan could miss out on investment, according to the Law Society.

As it gets harder to get a loan, any barriers at all can put off potential lenders, the organisation explains.

Society president Andrew Holroyd says that 'coming up with a bright business idea is one thing' but that entrepreneurs need to ensure than their planned business complies with laws governing finance, employment, tax, and health and safety.

Therefore 'it makes sense to impress them with a business plan which, from a legal point of view, is as sound as a pound', he comments.

Breaching laws could also cost a business dearly.

Holroyd explains: 'The costs involved with breaching some of those laws could cripple a newly established business.'

Businesses also need to keep up with developments in law governing business for example the new Corporate Manslaughter Act.

The Law Society represents the interests of solicitors in England and Wales, providing training and advice and lobbying policymakers on important decisions.