5. Growing your business
You've set up your company, it's performing well, and now you're considering how to take it to the next level. Scaling a business brings new opportunities and new challenges. 1st Formations' resources to growing a business help you make smart decisions as you scale, from hiring your first employee to avoiding common mistakes. You'll also find practical advice on the best business tools for small businesses, and how to manage company shares as you grow.
Articles & Guides
Scaling brings new questions: when to hire, how to manage shares, which tools are worth investing in, and more. Our guides to growing a business help you make confident decisions at every stage, backed by practical, expert-led advice.
How to grow your business in the UK in 10 steps
Follow these 10 simple steps to grow your UK business, attract more customers, and increase your chances of success.
Written byGraeme Donnelly
9 minutes
How to hire your first employee
Learn the key steps to hiring your first employee in the UK, from legal checks to setting up payroll.
Written byGraeme Donnelly
9 minutes
18 common startup mistakes business owners make
Discover the most frequent mistakes new business owners make and how to avoid them when launching your startup.
Written byGraeme Donnelly
10 minutes
How to transfer or issue shares in a UK limited company
Find out how to properly issue or transfer shares in a UK limited company, with clear steps and legal requirements.
Written byNicholas Campion
6 minutes
Best business tools for startups
Discover essential tools for startups – from accounting and CRM to project management and automation – to streamline early-stage operations.
Written byGraeme Donnelly
6 minutes
How to change director, PSC, and share details
A step-by-step guide to updating director and PSC details, and making changes to shares, with Companies House.
Written byNicholas Campion
10 minutes
All Categories
These resources are Category 5 of 6 in the Resource Hub. Explore the rest of the journey, from forming your company to running it day to day.
Watch helpful videos on startup advice
How to set up a business bank account
8 ways small businesses can fund expansion
15 money-saving tips for small businesses that you need to know
Why partner with a company formation agent
Running a growing business brings new admin: more shareholders, more compliance, more decisions to get right. Our business solutions provide clear, ongoing support, so you can focus on scaling. Our All Inclusive with Accounting Package keeps you on top of it all as you grow:
- Covent Garden registered office
- VAT registration
- Your own company secretary
- Ongoing accounting support to handle the details while you focus on the bigger picture
Things to consider when running your business
- Decide if you need to hire your first employee
- Review your company structure and share allocation as you scale
- Put the right business tools and systems in place
- Update director, PSC, and shareholder details if they change
- Reassess your business insurance as your risks grow
- Build a financial plan to support hiring and expansion
- Learn from common startup mistakes before you scale further
- Set clear goals and milestones for the next stage of growth
Our founder’s startup story
Learn more about Graeme Donnelly, CEO and founder of 1st Formations, and how his entrepreneurial journey began.
Read Graeme’s StoryExplore useful articles from our blog on growing your business
A guide to company shares
Company shares represent ownership in a limited company, with various types including ordinary, preference, and non-voting shares. Shareholders gain rights such as voting, dividends, and capital distribution based on their share class. Shares can be bought, sold, and transferred, and their nominal value determines financial liability in case of company debts.
12 Common legal mistakes new startups make
The most common legal mistakes startups make include using verbal agreements, choosing the wrong business structure, overlooking co-founder agreements and issuing company shares without understanding dilution. Mistakes also involve confusing share transfers with share issuances, not protecting intellectual property (IP), misclassifying employment status, and missing company filings. Other mistakes are issuing unpaid shares, poor record-keeping, ignoring data protection rules and using AI-generated documents carelessly.
Everything was in one place, and it was easy to use for somebody who didn't really know what they were doing.
Liz Fraser, Dot Dot Dash Coaching
Frequently Asked Questions
When should I hire my first employee?
There's no fixed rule, but it's usually a time when you're consistently turning down work or spending too much time on tasks outside your core skills. These obstacles can often indicate that extra hands are needed in the business, and the numbers could show you can sustain the extra cost.
How do I know if my business is ready to scale?
Signs include steady demand beyond your current capacity, healthy cash flow, and repeatable processes that don't rely entirely on you. It's worth reviewing your finances and workload honestly before committing to growth.
Do I need extra insurance as my business grows?
Often, yes. Hiring employees, taking on more clients, or expanding your premises can all change your risk profile and insurance requirements. It's worth reviewing your cover regularly as you scale.