Growing your business can be a very exciting, positive time but it also presents challenges. By taking some key legal considerations into account, you can make sure any growth plans are built on a sound legal foundation.
Future Planning – Getting Prepared
Business growth requires careful planning so start by reviewing;
– How will you grow? Through acquisition, joint venture, franchise or simply growing employees and improving processes?
– Corporate structure – will a new company be required or any changes to your existing corporate structure?
– Materials and machinery – will you need to improve capital items in line with growth?
– Funding – will finance conditions be a factor?
– Regulations – will you need to consider any legislative or licensing changes?
– Ultimate goals – what do you want to achieve?
Growth will inevitably mean investment into the business, in terms of time, money or a combination of both.
Where any bank or third party funding is required, time must be factored into your strategy. When obtaining any lending, the lender will want solicitors to consider the legal finance documents and this does take time before funding can be drawn down.
Accounting and Taxation
With any material changes to a business it is also imperative that accounting and taxation advice is sought. For example, capital allowances may be a factor where commercial premises are being purchased and an accountant will be best placed to assist in any negotiations in this respect.
The Best Way to Grow?
Business can grow in a number of ways including
– Mergers (when two separate businesses join together to become one single business)
– Acquisitions – when one business buys out and absorbs another business
– Setting up a distraction or franchise network
– Licensing, distributing and reselling arrangements
– Taking on a larger market share of clients, office space or personnel.
It’s important that you examine what type of growth will suit your business.
Business growth also means examining your business’ structure. For example, you may need to consider becoming a limited company (if, for example, you operate as a partnership) or reviewing your share/ownership structure. This will inevitably also mean examining your relevant legal documents.
Professional help when you need it
AMD solicitors have a dedicated team of commercial solicitors in Bristol who are experienced in helping businesses achieve successful growth.
To discuss your business growth plans, contact Tony Moore, Head of the Commercial Department on 0117 973 39 89 or email firstname.lastname@example.org.