Infographic: understanding the legal lifecycle of your small business

There are around 5.5 million small businesses (with 0 to 49 employees) in the UK, as diverse as those who run them. Regardless of sector or size, many companies go through a similar lifecycle, encountering common challenges and legal requirements.

Our solicitors are on hand to help at every stage of the business lifecycle, anticipating your evolving legal needs and providing tailored advice.

Stage 1 - Launch

The lifecycle of a business begins in the launch stage - where your idea is off the ground, and your business exists legally. One of the most critical legal matters is determining what corporate structure to create - a sole trader, partnership, limited liability partnership, or limited company.

New businesses must set off on the right foot - whether it's well-drafted commercial contracts, securing commercial premises, or a shareholder agreement managing the expectations of your initial shareholders.

• Articles of association
• Commercial contracts
• Commercial property leases
• Employment contracts
• Investment agreements
• Memorandum of incorporation
• Partnership agreements
• SEIS advice
• Shareholder agreements
• Terms and conditions
• Trademarks and patents

Stage 2 - Growth

The growth period is one of the most exciting stages of the business lifecycle. As work grows, your business may require an expanding workforce, broadening your offering, or entering new geographies.

As the volume of work accelerates, new challenges can emerge - for example, the need for more office space or outsourcing to increase skills and capacity. 

• Consultancy agreements
• Contract reviews
• Distribution agreements
• Franchise agreements
• Joint venture agreements
• Outsourcing agreements
• Service agreements

Stage 3 - Shake-out

The shake-out stage can be viewed as the final stage of the growth period. Growth slows, and a period of consolidation occurs, often focusing on increasing profitability and addressing operational issues. 

You may look to offload unprofitable parts of the business, remove directors, address employee issues, renegotiate commercial leases, or invest in property.

• Commercial lease negotiation
• Commercial property acquisitions
• Corporate restructuring
• Litigation and settlements
• Share transfers
• Staff restructuring

Stage 4 - Maturity

The fourth lifecycle stage is what every startup and small business owner aims for. You can focus on maximising profitability, fine-tuning operating procedures, or bringing in others as shareholders to incentivise key employees. 

However, with your business operating near its full capacity, this stage can also come with more legal challenges. These could come in the form of contract disputes, IP challenges, dissatisfied customers seeking legal recourse, or employee issues.

• Business acquisitions
• Commercial and IP disputes
• Employee share schemes
• Issuing and transferring company shares
• Litigation and dispute resolution
• Shareholder disputes
• Succession planning

Stage 5 - Exit

Whether your business is large or small, and whether an asset sale or a share sale, we can help you prepare for, negotiate, and complete the transaction successfully. You may also consider an MBO where your management team buys the business - often with the assistance of external parties such as credited lenders or private equity funds.

Other owners may look to wind down the business and dissolve the entity. You'll find out that there's much more to ending your company than just closing the doors, including meeting your legal and tax obligations and handling employee matters. 

• Asset sales
• Company dissolution
• Confidentiality agreements
• Employment law and TUPE
• Heads of terms
• Insolvency
• Lease transfers
• Legal due diligence
• Management buyouts (MBOs)
• Share sales
• Tax considerations

Contact our corporate solicitors

The above infographic highlights just a few services our solicitors provide business owners. Wherever you are on your business journey, our solicitors offer expert, commercially-minded legal advice every step of the way.

We help our clients respond to challenges large and small - from shareholder agreements to employment law, from mergers and acquisitions to complex restructuring projects.

We have solicitors in London, Brighton, East Sussex and Cumbria, and we work with business owners across the UK.