1. Choosing what entity and structure it should be
There are many ways in which companies can be set up. Sometimes the development of a new idea will mean you can consider more than just setting up a company together with an investor. Instead there could be a joint venture agreement set up to help parties achieve a common goal, or quite simply an investor could buy into a growing start up. The important thing is that advice is sought on what is the best thing for the commercial motivation behind the legal structure.
2. Hiring or buying a premises for the company
Do you lease, or buy a premises? At all stages, a good management board will always be considering what the best move is for a company and its next steps. Getting the right place for the company at the right time is key.
3. Looking after its employees
At one stage or another, employment law will be a serious consideration to a business. One of the largest costs or overheads for a company, looking after its staff, or hiring the right staff is key. Therefore making sure a company is legally compliant is really important.
4. Whether to have a shareholders agreement/partnership agreement put in place?
This will very much depend on the structure of the company and where it is in its life cycle. Solicitors will always advise on putting in place a shareholders agreement, not least because it can help all parties involved record the terms of what is agreed between them. It is important to always reconsider the terms of the shareholders agreement if there is one put in place, at regular intervals. Any changes or requirements or circumstances may mean it needs to be amended from time to time.
5. The five year plan/exit strategy
When starting out this can be the last thing on the shareholders mind, however it’s an important consideration. What exactly do all parties want out of the arrangement? Is there an aim to grow and then sell, or merge with a larger company? Or is it simply to attract investment with huge growth plans? This needs to be bottomed out from the beginning, and with help from professional advisors, this helps the process go as smoothly as possible.
For more information to to find out how we can help you, please contact a member of our Business Law Team on 01279 755777.