HOUSTON BUSINESS REVIEW

CYA: Issues and Challenges in Expanding a Business
By Shahara Wright

Shahara D. Wright, Business Law Attorney, "Serving businesses from start-up through expansion". You can cantact her by: calling her at (281) 980-2040, sending her an e-mail or visiting her website. For more information concerning Shahara Wright click here.

This week I want to review some of the issues a business faces when expanding a business. Business growth is filled with plenty of good problems. They are good, yet they are also problems. Hopefully understanding some of these concepts will keep you in the right direction.

Lease Agreements

Plan on expansion if you want a second location. You will need a need a new lease agreement. You will also need to look at a termination agreement. “If this location doesn’t work out as planned, how will I be able to terminate the agreement?” Failure to plan for such things in the front end can find a business in a terrible position in the back end.

Employee manuals

When expanding your business, you will need to hire more employees. It is necessary, that all employees receive consistent training to uphold the company image. A manual is a good way to keep consistency. You will need to put similar training in process and a consistent manual so that everyone is familiar with rules and regulations. Furthermore, employee manuals prevent the problem of “he said, she said.” Without an employee manual, which you need everyone to sign, it becomes the employers’ word versus the employees’ word in court, which is a position of weakness no one wants to be in.

Corporate Restructuring

Look at how your business is structured: management, corporate documents, and types of entities. See what you need to change about your structuring; be aware of the constant changing of state and other laws, consider adding shares to your company. These constant check ups will keep your business moving in the desired direction.

As you can see, most of these require preventative action when it comes to your relationship with an attorney. Consulting with one on these type of issues on an on going basis will help prevent future headaches and heartaches.

Nothing in this article is intended as legal advice and you should consult an attorney before making any decisions.