Serious about growth? – early advice is key
Freeths specialise in advising LIFE SCIENCE companies with ambition, writes Claus Andersen Partner, Corporate, Freeths LLP.
There is a general but understandable trend of entrepreneurs avoiding engaging with legal advisors in the early stage of their business. The journey of any start-up will invariably encounter turbulence, but there are a number of risks and costly mistakes that can easily navigated by seeking early advice. Set out below are out a few areas, which can support the success of your company.
Develop a robust business plan:
Any potential funder or investor will expect a clear business plan. The old adage “failing to prepare is preparing to fail” may seem harsh, but having all relevant information available and in good order can drive value. A well-structured, comprehensive business plan, company documentation and clear ﬁnancial models will help investors understand your business and facilitate the transaction as investors see you as an attractive investment. This will not only help speed up your transaction but can also help you drive value.
Protect your idea:
It sounds obvious, but businesses must ensure their position and IP are protected robustly. Have clear documentation in place from the outset on the ownership of IP, and then consider if the IP needs protecting and how. Your IP is potentially your biggest asset – if it is not properly protected, there is always a risk that the business itself will suffer.
Consider corporate structure:
This is key to early-stage success. Incorporating structures and setting out what each person is entitled to may not seem vital when you and your best friends and co-founders are getting along, but what happens in the case of corporate divorce? Early advice on your structure will save you headaches in the future.
People, your businesses’ most important asset:
For organisations, the strength of its employees and their skills are vital to meeting current and future business demands. Knowing the employment rules is essential for protecting your organisation and keeping a positive business relationship with your employees. Without proper employment contracts in place, there is potential to cause signiﬁcant damage to your business’s future, reputation and success.
Secure your commercial terms:
This can be your contracts with customers or terms and conditions with suppliers. Getting the small print right will save you time, reduce costs and avoid disputes.
Engaging early with the right advisor and securing the right support is key to unlocking the potential of your business. We specialise in helping you grow your life science business, from the early stage all the way through to exit. Timely advice will put you in the most competitive position and will help you navigate the unique opportunities and challenges in your individual business.
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