WHY YOUR BUSINESS NEEDS A LAWYER.
Businesses start with good ideas and little cash so it is common that entrepreneurs typically do not involve lawyers after business registration. It is also a fairly common perception that lawyers are only necessary when there is trouble rather than when everything is going right. Whilst it might be understandable for businesses to limit their legal costs during the infancy of the business it is however wisdom to work with an attorney to help with the little things which have the potential to blow out of proportion if not well managed.
A commercial attorney understands how to value a business, negotiate and draft contracts, conduct due diligence, obtain permits and licenses, pursue claims where there is a breach of contract etc. Even when your company is small, countless legal issues can arise during its early years and having legal support will help you understand your options and make the best decisions about the sometimes complex processes every business goes through. This week we have identified 6 reasons your business should keep a lawyer close.
#Business Registration/Incorporation
Registering a business entity is essential for every serious entrepreneur and options range from sole proprietorship (business names), partnerships, Limited Liability Company and Non-Profits (NGO). You need a commercial attorney who understands your business and can guide you on proper business structure.
#Partnerships/Joint Ventures
Business has gone past the era of “gentleman’s agreement” and wise entrepreneurs now invest time and money into creating partnership agreements that are not only fair but also rigid enough to protect all interests from the beginning. This approach protects you from trouble that might come later as memories fade and emotions/ greed come into play. Your attorney can help create a formal agreement which would prevent problems and cement business relationships.
#Litigation
This is the most common instance where businesses require the services of a lawyer. Your business can be sued by an aggrieved employee or customer or for violation of a contract with a vendor or supplier but whatever the situation, you need a commercial attorney who understands the legal process and can support your business during this trying period.
#Drafting and Negotiating Contracts
Businesses enter into contractual negotiations all the time which ultimately leads to the Company binding itself to perform an obligation. Contracts can be oral or written but in any case you need an attorney to ensure you don’t sign one that will put your business in jeopardy. Again, where there is a breach of your contract your lawyer is in a position to also point out your options.
#Protecting your Intellectual Property
Ideas rule the world and businesses thrive on innovative ideas consequently protecting your intellectual property is vital to the life of your business. You must have a lawyer who understands intellectual property law and can help you protect your idea and brand
#Regulatory Compliance
Entrepreneurs cannot keep up with thousands of regulations created by federal and state regulatory agencies. Non Compliance with government regulations can sometimes ground your business or make you incur losses thus retaining the services of a lawyer is essential to protect you and your business from the regulators.
We end with a quote from Strive Masiyiwa, a London-based Zimbabwean businessman, entrepreneur, and philanthropist who is the founder and executive chairman of international telecommunications group Econet Wireless-
“A wise business person MUST at all times have access to a lawyer and accountant: period. And you don’t start looking for one when you are in trouble.
Not all lawyers work for big firms. There are many small law firms, some of them with even just one lawyer. After all they are business people just like you. Don’t “fear from a distance”, by saying this will be expensive. What is really expensive is to simply proceed into business without proper legal advice or access to such advice. You will know the true cost when you are confronted with a big legal challenge. You can end up losing everything you worked for, if you are not careful…it is tough out there!”
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