You’ve been inspired to set up your innovative, original and game-changing business – now it’s time to make sure it flourishes safely. Growth brings opportunity, but it also brings legal and commercial risk. Here are the key areas to address to protect your game-changing business as it scales.

Terms and conditions

Your terms and conditions (T&Cs) are your first line of defence when something goes wrong. They set out what you will deliver, how and when payment is due, what happens if there is a defect or delay, and how disputes will be handled. Without clear T&Cs, you leave your business exposed to arguments over refunds, cancellations, liability and delivery.

Think carefully about whether a standard set of terms will suit every customer or whether you need bespoke contracts for larger clients, complex projects or one-off events. Bespoke agreements can address specific risks such as intellectual property ownership, confidentiality, milestones and limitation of liability.

UK consumer-facing businesses must also comply with legislation that implies terms into contracts. The Consumer Rights Act 2015 sets standards for goods, services and digital content sold to consumers. If you sell online, by phone or mail order, the Consumer Contracts (Information, Cancellation and Additional Charges) Regulations 2013 apply. These require clear pre-contract information, cancellation rights for distance and off-premises contracts, and transparent pricing with no hidden charges. The Electronic Commerce (EC Directive) Regulations 2002 still govern commercial communications, electronic contract formation and order acknowledgements for online sales.

Even if you trade only with other businesses, the Supply of Goods and Services Act 1982 and the Sale of Goods Act 1979 may still apply in certain circumstances, so make sure your contracts reflect the latest legal position.

Protect your intellectual property

For many game-changing businesses, intellectual property (IP) is the most valuable asset. Your unique product, creative output, branding or know-how can all be protected – but only if you take the right steps.

Consider which IP rights are relevant:

• Patents protect new inventions, products or processes. Apply through the Intellectual Property Office before you disclose the invention publicly.
• Registered designs protect the appearance of a product. Unregistered design rights also exist but offer narrower protection.
• Copyright arises automatically in original literary, artistic, musical and software works. It does not need registration in the UK, but keep records of creation dates and ownership.
• Trade marks protect names, logos, slogans and other signs that distinguish your business. Registration gives stronger protection against copycats.

Before you launch a new product or brand, carry out clearance searches to check you are not infringing someone else’s IP. Inadvertent infringement can lead to costly court action, re-branding and lost sales. If employees or contractors create IP for you, make sure your contracts assign ownership to the business.

Employment issues

As your workforce grows, so do your legal obligations. Getting employment law right from the start protects your business from tribunal claims, fines and reputational damage.

Under the Equality Act 2010, discrimination is unlawful on grounds including age, disability, gender reassignment, marriage and civil partnership, pregnancy and maternity, race, religion or belief, sex and sexual orientation. Review your recruitment, promotion and dismissal processes to ensure they are fair, consistent and documented.

Employees have a right to a written statement of particulars from their first day of employment, covering terms such as pay, hours, place of work and notice periods. You must also provide payslips, operate PAYE and offer statutory leave including maternity, paternity, shared parental, adoption and sick leave. Keep clear policies and records for holidays, absences and flexible working requests.

If you are considering dismissal, follow a fair procedure and the Acas code of practice. Unfair dismissal claims can be expensive and time-consuming, even if you believe you have good reason.

Once you employ 50 or more people, the Information and Consultation of Employees Regulations 2004 may require you to inform and consult your workforce about the economic situation of the business and substantial changes to work organisation or contractual terms. Even below that threshold, good communication reduces risk and builds trust.

Keep your protections under review

Legal protection is not a one-off task. As your business evolves, revisit your terms, IP portfolio and employment practices at least annually and after any significant change, such as a new product launch, funding round or recruitment drive. Taking advice early is usually far cheaper than dealing with a dispute once it has escalated.

For more guidance on starting and scaling a business, explore the resources on Prowess.