Scaling Pains: 7 Hidden Legal Gaps That Stall Fast-Growing Companies
- aakintomide
- Oct 8
- 2 min read
Is your business ready for its next stage of growth?
When a company crosses that milestone from start up to established scale-up, growth can feel both thrilling and chaotic. New markets, more staff, larger deals – and the silent risk that legal foundations built in the early days can no longer carry the weight.
A number of businesses have scaled in the UK to making over £10 million in yearly revenue but face the same bottleneck: they scale their sales, but not their structure.
Here are 7 legal gaps in growing companies that can quietly slow down growth – and how to fix them before they cost you.
1. Outdated Contracts
Those early templates or one-size-fits-all agreements? They’re often the first crack. As the size of the business grows, so does exposure. Ensure contracts match your current operations, bargaining power, global footprint, and obligations.
2. Informal Governance
When decisions are still made via WhatsApp or memory, red flags are flying. A proper board structure, delegated authority, and record-keeping protect you from both internal conflict and investor scrutiny.
3. Compliance Blind Spots
Scaling internationally? Each new region brings its own data, labour, and tax compliance rules. Early legal mapping saves you the pain of multi-jurisdiction clean-ups later.
4. IP Ownership Confusion
It’s surprising how many scale-ups don’t fully own their IP. Check your employee and contractor agreements – IP must vest in your company, not the individual creators.
5. Unclear Roles and Liability
When teams expand quickly, accountability becomes blurred. Ensure director duties, indemnities, and insurance are reviewed. Growth doesn’t protect you from governance duties.
6. Missing Legal Processes
If legal support still means finding a freelancer at the last minute, you’re already behind. Scale-ups need structured contract management and workflow systems to keep momentum.
7. Reactive Legal Support
At a certain point, founders must move from “legal firefighting” to strategic prevention. Fractional or in-house counsel is an investment in scalability, not a cost.
Quick Checklist for Founders
☑️ Are you clear on your obligations in key contracts?
☑️ Is your governance and approvals process formalised
☑️ Is all IP assigned to your company?
☑️ If selling products or services abroad, is cross-border compliance mapped?
☑️ Do you have legal workflows in place, including designated legal support?
If any box above is unticked, your legal framework may not be scaling as fast as your revenue.
At Count & Sol, we help ambitious founders scale sustainably – ensuring legal strategy fuels growth instead of slowing it down. For deeper insight into how Count & Sol can support your business, book a consultation today.
