Scaling a business isn’t easy, but avoiding these 10 common pitfalls will help you to grow your business and set the right path towards exiting.
We work closely with many new businesses and start-ups. We see that time after time the challenges new ventures face are often similar, regardless of sector or the products and services they offer. The advantage of this is that with some forward planning, it’s possible to avoid many of the most common scaling pitfalls. Read on to discover the 10 pitfalls we see most often, and more importantly – how to mitigate and avoid them!
1. Due diligence panic
You never know when a great opportunity will come along. For that reason, you should always be ready to raise and sell. Mergers and acquisitions follow similar processes to fundraising, so prep early. Manage internal operations with a due diligence questionnaire or checklist and by setting up a due diligence room (an online space where you maintain all documents that will be relevant to a sale, acquisition or merger).
2. Company secretarial disasters
3. Founder fall-outs
4. Going overboard with the equity
5. Being too thrifty with legal expenditure
6. Losing control of raising
7. Losing control of your exit
8. Filling the wrong seats
9. Not protecting your IP
10. Not adapting to growth
Need help to avoid the pitfalls?
Knowing the potential pitfalls you may face as you scale is sometimes enough to help you avoid them. Much can be achieved with proper planning and clear goal-setting. However, sometimes you need some additional support.
At Seven Legal, we specialise in providing businesses with stage-specific legal advice to help them grow. We believe in offering practical and solution-oriented advice and work closely with our clients as their legal partners for the journey. To find out more, visit our client journey, or get in touch to find out how we could help your business.