Expert Opinion: 15 top tips for scaling your business

Legal experts from the employment, corporate, commercial property, litigation and private client teams from Cheshire law firm, SAS Daniels, discuss some of the key areas you may need to consider to help you on your way to successfully grow your business.

Looking to scale your business and planning for long-term success is an exciting time but with many important things to consider, it might make you feel overwhelmed.

Having the correct measures in place will mean you can enjoy growing your business and focus on achieving your aspirations.

Here are our 15 top tips for scaling your business to ensure long-term success:

Employment law considerations

1. Review and update policies and contracts

Regularly review your business policies and employee contracts to keep them relevant. These documents help maintain fairness and transparency and should help staff feel supported at work and understand what is expected of them.

It is a legal requirement that all employees are provided with a contract to sign when they start their employment, so it is important these are well drafted and up to date.

2. Train your managers

Equip managers with the training they need to handle larger teams confidently, not only for their own confidence but also to ensure the company does not find itself in legal difficulty if something is dealt with incorrectly.

3. Invest in HR and employment law

As your team grows, new challenges can naturally arise. Ensure you have quality HR and legal advice to manage these effectively and protect your company from potential legal issues, by being confident that the advice you have been given is accurate and true.

Corporate law considerations

4. Set up governing documents early

Establish shareholder agreements and articles of association (where a limited company) early on to avoid complications later. Having these in place will give you the reassurance that they are readily available when needed, and not finding out you need them when it is too late.

5. Ensure contractual agreements are in place

Make sure your terms and conditions around your supply are thought out and put in place, this makes it clear what is expected and avoids any miscommunication.

6. Review data protection and compliance

Take the time to understand what types of data your business collects, how it is used and how this is communicated to your customers and suppliers.

You should then make sure you fully understand your obligations when it comes to data protection and make sure you are legally compliant.

7. Protect intellectual property

Ensure any innovative ideas or products are adequately protected from an intellectual property perspective to avoid others stealing or exploiting the idea.

Real estate considerations

8. Check lease provisions before alterations

Review your lease agreements before making any alterations to your premises to reflect your business plans. You will often find that alterations are prohibited for any exterior or structural part of the property, and any internal non-structural alterations would require your landlord’s prior written consent. Ensure you comply with all requirements to avoid unexpected costs. You may also need to consider any reinstatement provisions in your lease.

9. Plan for potential relocations

If you’re considering moving to a new location, understand your lease’s break clauses and potential costs associated with early termination. It is likely the break can only be exercised on a specific date during the lease and therefore timing of this is critical. You may also be required to serve notice to the landlord as per the requirements in the lease.

10. Consider leasing new premises

Your business growth may mean you wish to enter a lease on bigger premises. If you are leasing new premises, negotiate a lease which suits your commercial situation and business goals. Such as if you wish to make alterations to the premises look at negotiating a licence to alter at the same time as entering into
your new lease. You should also factor in costs associated with new premises.

11. Consider buying new premises

Consider purchasing premises which would suit the future of the business and if you are planning to grow further you may require premises bigger than your current needs. You could look into sub-letting part
of your premises (subject to any lender’s consent) which would manage any cash flow challenges and maintain flexibility in your premises. You could also look into this if you are leasing your premises but would need to check if your lease allows this and obtain landlord consent.

Preventing litigation

12. Choose the right advisors

Build strong relationships with legal and financial advisors to prevent disputes from escalating. Choosing the right people to advise you, in the long term, can produce a significant cost saving. Regularly review
their contracts to ensure they meet your current needs.

13. Consider outsourcing debt recovery

If as a smaller business you previously sought recovery of debts internally, it might no longer be cost-effective to continue to do so as you grow, and use of an external debt recovery solicitor would perhaps be more effective in terms of time and cost management.

Personal affairs

14. Think about succession planning

Plan for the future by setting up succession plans and shareholder agreements. This ensures the smooth
continuation of your business even in unforeseen circumstances. This can evolve over time, but it is sensible to consider this on a regular basis and ensure everything is in place to allow this to happen.

15. Secure your personal affairs

Protect your business and family by setting up wills, lasting powers of attorney, and seeking tax advice to optimise inheritance tax reliefs. There are many scenarios that could occur and having these in place can ensure your business can continue to run and it is clear on what should happen to your share of the business. There are also generous inheritance tax reliefs for trading businesses where certain criteria are met.

Growing your business can be stressful but with the right advice, policies and procedures in place you can be assured things should go as smoothly as possible and allow you to focus on making your business even more profitable.