How to protect your business in 2026: 10 commercial risks to be aware of

Written by Andrew McDonald  Director Lodders LLP

As businesses scale, the risks they carry scale with them.

A clause that felt harmless at £2m turnover can become a six‑figure liability at £10m.

Growing customer demands, tighter deadlines, and more complex supply chains expose weaknesses that were previously invisible.

Protecting your business in 2026 isn’t about avoiding risk it’s about managing it early, clearly and consistently.

Here are the ten commercial gaps that most high‑growth companies overlook.

1. Outdated contracts that no longer fit your business

Most companies outgrow their contracts long before they update them. Vague scopes, missing change‑control, weak pricing mechanisms and thin liability caps are common sources of disputes.

• Refreshing templates annually, tightening scopes, and ensuring liability caps reflect today’s commercial reality.

2. IP ownership that isn’t defined clearly

IP includes CAD files, datasets, algorithms, process parameters, embedded logic and know‑how.

If ownership isn’t documented, both sides assume it’s theirs and disputes follow.

• Defining background vs foreground IP, ensuring automatic assignment from employees and contractors, and granting licences rather than ownership when appropriate.

3. Weak supply‑chain and manufacturing agreements

Supplier failures quickly become customer‑level failures. Missing KPIs, lead‑time guarantees, continuity provisions or tooling clarity expose you to unnecessary risk.

• Including measurable KPIs, lead‑time guarantees, tooling ownership clauses, audit rights, and continuity or step‑in mechanisms.

4. Technical workforce contracts that let know‑how walk away

Your technical teams hold your competitive advantage. Without strong IP assignment, confidentiality and restrictive covenants, expertise can leave the business legally.

• Strengthening employment and contractor agreements and embedding confidentiality into processes, not just paperwork.

5. Partnerships without clear obligations or exit routes

Partnerships move fast and unravel faster when roles, contributions, ownership and governance aren’t clear.

• Define who does what, who owns what, and how either party can pivot or exit if priorities change.

6. Poor Readiness for Investment or M&A

Investors expect commercial discipline: capped liabilities, clean IP ownership, standardised templates and supplier resilience. Gaps reduce valuations or at worst derail deals entirely.

• Identifying and fixing risks early, running a pre‑investment diligence rehearsal, and ensuring key contracts are assignable.

7. Accepting major customer terms without negotiation strategy

Large customers often propose aggressive terms — unlimited indemnities, one‑sided exclusivity, reverse‑engineering rights and broad audits. Signing without challenge erodes margin and increases exposure.

• Preparing negotiation playbooks, red‑lines and fallback positions, and linking higher risk to higher pricing.

8. Handling disputes too late

Disputes become expensive when they are handled reactively. Delayed documentation and inconsistent communication between technical and commercial teams amplify the cost.

• Building escalation and mediation steps into contracts, documenting early, and aligning internal teams when issues arise.

9. Weak pricing, quotation and scope governance

Fast growth often means rushed inaccurate scopes and inconsistent pricing which are quiet killers of profit.

Without strong governance, margin leakage becomes inevitable.

• Standardising quotation templates, requiring joint technical and commercial sign‑off, and linking variation pricing to formal change control.

10. No commercial roadmap for scale

Businesses don’t fail from one big mistake they fail from lots of small preventable ones. A commercial roadmap gives structure to growth.

• Updating templates, mapping supplier risk, performing annual IP/contract audits, assessing partners carefully, and training teams in negotiation.

Strengthen before you scale

Growth is only an asset when the structure beneath it is strong.

• Strengthen your contracts, clarify your IP, secure your supply chain, protect your workforce know‑how, and enforce disciplined pricing and governance.

Do that, and growth becomes more resilient, more profitable and more investable.

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