When DIY legal won’t cut it
Being small often means operating very lean. One of the first expenses small business owners avoid is legal. The thought of paying hundreds or thousands of dollars for a contract negotiation or support resolving a business dispute seems unfathomable.
Here’s the reality. You don’t need to call an attorney for every issue. You don’t need an attorney to draft and negotiate every contract. There are some areas where DIY will do more harm than good to your business.
When should you rely on a skilled legal advisor?
Initial start-up/formation - how you set up your business sets the tone. It impacts how you’re taxed, how you incur liability, the ability to pass the business on later, and so much more. Taking a shortcut and not performing a full evaluation at the start-up stage can cost you later on. An attorney with a knowledge of the federal, state and local business laws and regulations can be an invaluable advisor at the start-up/formation stage. They can marry what you aspire to create with what the law requires and help you form an entity that fits your business now and grows with you into the future.
Creating your business risk profile. Where do you potentially have the greatest exposure? Exposure potentially equals money. That money would be better spent growing your business. A skilled legal advisor can help you understand how to build in a compliant manner while still embracing your creative vision as the founder.
Understanding rules and regulations. Every industry has its own set of rules and regulations. Knowing them can ensure that as you develop products and services you are set up to operate in compliance with industry requirements. A qualified legal advisor will explain the impact of those rules and regulations on the products and services you’re trying to bring to market. They will help you craft your business strategy in a way that enables you to deliver those products and services in a compliant manner.
Small business can mean lean, but strategic legal spend can save you time and money in the long run. It can ensure you’re spending your revenue on business building activities, not paying off liabilities.