In a new series, we explore the legal implications of growth. This follows the launch earlier this year of our in-depth report, Ambition 2025, which looks at the drivers for growth of North West businesses – their strategic objectives for the year, the challenges that lie ahead and the opportunities that exist in their quest for success. The report dives into a number of core areas that feature prominently in the growth ambitions of regional businesses. These include finance, people, innovation and sustainability.

In the third of four blogs, we focus on the key topic of innovation, speaking to partner, Sarah Bazaraa, and associate partner, Danielle Amor, about its importance and what businesses need to consider from a legal perspective when scaling up.

The importance of innovation

When it comes to technology and innovation, the North West is rapidly making a name for itself, particularly in Manchester where the digital economy is worth over £5 billion, employs more than 88,000 and is home to over 10,000 businesses. This has resulted in the thriving digital ecosystem being ranked as the UK’s ‘top digital tech city’ and Europe’s fastest-growing tech hubs.

But the impact of technology is not only being felt by those that create it. Its impact is being felt across a multitude of industries and professions. In fact, nearly a quarter of respondents (22%) of the Ambition 2025 survey ranked ‘innovation within their sector’ as one of the top three business priorities in 2025, with 24% of businesses looking at how AI can be adopted across their business – more than a third (38%) of North West businesses said the biggest impact of this was improving efficiencies.

The survey clearly shows the importance of innovation in helping businesses to achieve their growth ambitions.

“The world doesn’t stand still and things change all the time,” explains Sarah. “As such, businesses need to evolve and innovate in order to stay in the race, particularly in highly competitive markets and in an economic environment where business leaders are constantly being kept on their feet.”

The need to adapt and innovate is driven in part by a desire to create efficiencies and achieve more with less, while at the same time pushing boundaries through products and services that break new ground.

But, as a scaling business how do you know when the time in right to embrace innovation?

“Innovation and implementing change is something that businesses need to consider on a regular basis,” says Sarah. “But timing can also hugely depend on what’s happening in the wider world. The Covid pandemic is a prime example. It forced people to stop and reassess their position in the market.”

While that may have been an extreme event, it’s essential that businesses remain agile and adapt to what’s going on around them. However, it has to be for the right reasons, Danielle cautions.

“It’s about striking a balance,” she explains. “You don’t need to reinvent the wheel, just for the sake of it. If someone is doing something really well, take advantage of it. You need to play to your strengths and work out where your business can innovate and make a real impact. If you’re just replicating what other people are doing, but in a slightly different way, there’s a risk it may add significant cost to your business without the benefits.”

Cost clearly plays a big part in innovation, particularly for start-ups.

“Companies at an early stage in their growth journey simply don’t have the budgets to create bespoke solutions, particularly when there is so much out there that you can get off the shelf that will serve your business in the same way,” explains Danielle.

“Innovation can also be daunting to a lot of companies that feel they have to come up with a totally new idea in order to meet the brief,” adds Sarah. “The reality is you can still innovate by adapting what already exists to serve your business, your audience and your sector.”

The ability and open-mindedness to pivot is also a key component of innovation. “There are so many examples of brands that failed to adjust quickly enough to changing market conditions and consumer sentiment,” explains Sarah.

“Timing is everything,” Danielle comments. “Choosing the right time, as well accepting that the world is changing, is crucial.”

Key legal considerations

From an innovation and IP perspective, there are several key legal factors to consider when vying for growth. These include:

• IP ownership – Businesses need to think about where IP ownership sits, especially if you’re working with a third-party consultant, a design agency, or a software engineer who’s not employed by you. “A lot of businesses don’t realise that the IP will sit with that third party, so you need to make sure that your contracts make clear that any kind of content, creations, or inventions that are produced by a third party on your behalf are assigned to you so that you own that IP in the first place,” explains Sarah. “This is particularly important if you intend to seek investment in the future, or you want to sell your business, as prospective investors/buyers will want to see that you own what you say you own.”
• IP registrations – Once you own the IP, you may want to consider securing intellectual property registrations for any key products, designs, or inventions. “Businesses will own unregistered rights in certain innovations,” says Sarah. “But for some of your key lines, depending on what it is, you may want to think about securing a patent, or a registered design right, to add another layer of protection.”
• Confidentiality – By not keeping certain information confidential, you run the risk of losing your IP rights and, for example, your ability to safeguard the innovation in a trade secret or to secure a patent. “It’s also important to consider whether you need non-disclosure agreements, particularly if you’re going to be speaking to third party suppliers, potential investors, or you don’t understand the process of how to put an idea into the world,” explains Danielle. “An NDA makes sure that you’re not giving away your best ideas for somebody else to quickly launch it before you have the opportunity.”
• Data – this is a big consideration if you’re creating new technology that is using personal data. You must ensure this complies with GDPR and that you take appropriate steps to mitigate any risks. “Fines from the Information Commissioner’s Office can be significant and, as we know, data breaches can cause huge reputational damage, with M&S, the Co-op and JLR, three high-profile examples,” says Danielle. “It’s about making sure your systems are secure, your personal data is as secure as it can be, while recognising that the protection of personal data is actually critical in many cases to the entire operation of the business.”

Support and guidance

Given the complexities surrounding innovation, seeking professional and early advice is key. There are also a number of other resources available to guide you through the process, including the Intellectual Property Office. “The IPO has a really good website, with lots of information for early start-ups,” explains Danielle. “The ICO also has lots of information from a data perspective on compliance.”

“Innovate UK is another useful resource for start-ups to tap into and a good starting point for businesses looking to innovate.” Sarah concludes.

If you would like to speak to Sarah or Danielle in more detail about the role innovation plays in your growth strategy, you can contact them on sarah.bazaraa@pannonecorporate.com and danielle.amor@pannonecorporate.com

In a new series, we explore the legal implications of growth. This follows the launch earlier this year of our in-depth report, Ambition 2025 [link], which looked at the drivers for growth of North West businesses – their strategic objectives for the year, the challenges that lie ahead and the opportunities that exist in their quest for success. The report dived into a number of core areas that feature prominently in the growth ambitions of regional businesses. This includes finance, people, innovation and sustainability.

In the second of four blogs, we focus on the key topic of people, speaking to partner, Michael McNally, about their importance and what businesses need to consider from a legal perspective when scaling up.

The importance of people

Best-selling author and motivational speaker, Zig Ziglar, once said: “you don’t build a business, you build people, then people build the business.”

There’s no doubt that they are a critical asset and essential in driving value and reaching strategic objectives. In fact, a highly motivated and happy workforce can directly contribute to economic growth, competitiveness and overall business success. According to statistics from US communication software company Firstup, engaged and more productive employees result in a 21% increase in profits.

“Unless you’re a completely automated business, it’s very difficult to achieve anything without the buy-in of your people,” explains Michael. “On the flip side, it’s easy to get things wrong if your people aren’t fully engaged and suitably trained.”

When it comes to scaling a business, there are various stages on the growth journey when the people agenda stands out.

“The first stage is focusing on the basics and making sure that you are legally compliant when it comes to employing people,” Michael explains. “As you grow, other things become more important, whether that’s introducing more in-depth HR policies, empowering senior leaders when it comes to managing people, as well as focusing on cultural performance.

“Creating the right culture and instilling the right behaviours is vital in a growing business.”

Key legal considerations

From a people perspective, there are several key legal factors to consider when building a robust workforce and vying for growth. These include:

• Ensuring you have the right terms and conditions in place to meet your legal obligations as an employer. It’s also important to make sure these are well documented and communicated with employees.
• Set and manage expectations. Do your people know what to do and what is expected of them? Clear, transparent and well managed policies will help to cover this aspect of your people proposition.
• ‘People buy people’. It’s important to have the right people in place to manage teams, and manage them correctly and proactively. This should all be done in line with the company’s policies, culture and obligations.
• When you employ people, it’s vital to have the most appropriate insurance in place and, if possible, a suitable retainer set up with a professional advisor, to offer advice should an employment matter arise.

Support and guidance

Google ‘people management’ and there’s a plethora of support and guidance at the click of a button – advice that Michael believes should be ‘approached with caution’. While resources such as ACAS, the Equality and Human Rights Commission and the CIPD have a wealth of resources – some basic, some practical and some more complex in nature – businesses also see value from within their own sector.

“A lot of clients that we speak to really appreciate the advice and guidance from their own trade bodies – organisations that can provide support and peer networks,” says Michael. “They understand the nuances of the sector and the specific challenges facing businesses, so bring a unique perspective that wider HR organisations sometimes cannot.”

Regardless of the support that exists online, through professional networks or from advisors, Michael insists that in order to achieve true success it’s essential to get buy-in from all managers, across all business functions, when it comes to HR processes.

“It’s important to recognise that when it comes to HR, it’s not something that’s just there when you have an issue or complaint,” says Michael. “If used properly, it can lead to a good culture, high performance, and a strong team. All of which ensure that you’re growing and successful as a business.”

If you would like to speak to Michael in more detail about the role people play in your growth strategy, contact him on michael.mcnally@pannonecorporate.com or call 07736617394

In the first in a series of new blogs, we explore the legal implications of growth. This follows the launch earlier this year of our in-depth report, Ambition 2025 [link], which looked at the drivers for growth of North West businesses – their strategic objectives for the year, the challenges that lie ahead and the opportunities that exist in their quest for success. The report dived into a number of core areas that feature prominently in the growth ambitions of regional businesses. This includes finance, people, innovation and sustainability.

We kick off the first of four blogs by focusing on the key topic of sustainability, speaking to associate partner, Bill Dunkerley, about its importance and what businesses need to consider from a legal perspective when scaling up.

The importance of sustainability

The topic of sustainability has raced up the business agenda in recent years, as global economies introduce stricter regulations and place greater emphasis on climate change, sustainability and the environment.

“Sustainability is definitely the word of the moment,” explains Bill. “While it means different things to different people, there’s no doubt that it’s a critical concept.”

Unlike many other business concepts that emerge along the growth journey, Bill insists that sustainability is a day one job, if not before. “It’s not a one-off activity or mindset,” Bill explains. “It’s something that businesses should be considering before the company is even up and running. After launch, it then becomes a continual process of reflecting on what you’re doing and constantly asking, ‘can we do things better?’.”

Key legal considerations

By its definition, the word sustainable means ‘maintaining a certain rate or level’. In order to do this, Bill says it’s essential for businesses to understand the changes being implemented by the government, whether that’s around net zero, greenwashing, or the transition to electric cars. “It’s all about horizon scanning and seeing what’s coming down the line, before positioning your business in anticipation of those changes, rather than being behind the curve.

“For example, while there are still questions around the move towards electric vehicles, the direction of travel is very clear. As such, businesses that operate fleets need to start thinking now about that transition, because there will be a capital and investment cost attached to that change. It’s impossible to simply do it the day before diesel engines are banned. You need to be looking ahead and factoring these changes into your business plans to best position yourself for the future.”

Compliance with evolving and emerging legislation is also a vital consideration for businesses when it comes to the issue of sustainability.

“Compliance is of critical importance,” explains Bill. “It’s hugely important to have a mechanism in place that enables you to monitor what is coming down the line and understand what legislation already exists, such as the Environment Act. This is a fundamental piece of legislation, which includes many provisions that will have a real impact on businesses, including the plastic packaging tax.”

When you take sustainability back to its true meaning, another area of consideration is around people. “The sustainability of your workforce is crucial when it comes to growth,” explains Bill. “This will differ from sector to sector, business to business, depending on what the nature of the work is. But the issue around mental wellbeing will only gain momentum, with the Health and Safety Executive (HSE) trying to raise awareness and educate businesses around mental health in the workplace.”

To date, the HSE hasn’t pursued, investigated or prosecuted any business for offences relating to mental health-related injuries in the workplace. However, Bill believes that once the education phase is complete, enforcement will follow. “Yes, you want to keep your workforce happy and motivated,” says Bill. “But, equally, on the regulatory front there is going to be an increasing focus on mental health, what employers are doing to protect their workforce, and how they are guarding against mental health injuries.” 

Support and guidance

When it comes to support and advice, where can businesses go if they want to discuss the issue of sustainability, in support of their growth ambitions?

“There’s a lot of information out there,” admits Bill. “Businesses need to be mindful of that and ensure any information, website, or company is verified.

“Any government website, or certain government departments, are probably the best places to start, as they will lay out what official plans are place in a given area.”

The other meaningful approach is internal listening, insist Bill. “Employee consultations are a powerful tool,” he explains. “By simply asking questions, such as ‘what can we do that’s more sustainable’, you can gain useful insight on more practical areas of sustainability, such as waste management and office-based environmental initiatives.”

If you would like to speak to Bill in more detail about the role sustainability plays in your growth strategy, contact him on bill.dunkerley@pannonecorporate.com or call 0)7920 237681