Decide whether to go legal
As a former full-time practicing attorney and now a small business owner, I have been on both sides of the fence when it comes to the legal issues a business owner can face. This gives me the distinct advantage of knowing when to call a lawyer for help, rather than using another professional, such as an accountant, financial planner, insurance agent or business coach, or perhaps handling the matter myself. . Additionally, my experience helps me select an attorney who is best suited for the business matter at hand. Many business owners have had limited experience in deciding whether a matter needs legal attention and, if so, what type of attorney to hire, how to find the best match, and how to maximize the attorney-client relationship. As a business owner, it is imperative that you understand when to “go legal” and, if you do, how to find and work with a lawyer who is best suited for your problem.
If you’re confused about whether your matter needs legal attention or whether you can handle it yourself, try researching the matter at the American Bar Association’s online self-help center. Go to Public Resources, then Legal Help, then Self Help. The section is organized by state and is an easy-to-use resource for determining if a matter is complex and requires a legal expert, or if it is something you can handle yourself.
Also, a good business coach, especially one with a legal background, is a great sounding board to help you determine if an issue is truly legal in nature and, if so, what type of lawyer to hire. You’d be surprised how many problems seem legal in nature, but turn out to be business decisions. So don’t be too hasty when deciding whether to become legal!
Not all lawyers are the same
So, assuming you’ve decided to “go legal” and hire a lawyer, which one are you going to call? If you broke your arm, would you make an appointment with an allergist? If you had an ear infection, would you seek the advice of a surgeon? Of course not! However, every day, many business owners contact and use attorneys to handle business matters that are completely outside the scope of that attorney’s expertise. Yes, lawyers specialize.
First, there is the main question of whether your matter is civil or criminal in nature. In general (and fortunately!), the average legal matter an entrepreneur will face is a civil matter. Therefore, he will have to deal with a civil lawyer (hopefully, in more ways than one). However, civil law is a big umbrella. Typical small business matters may include incorporation, intellectual property (trademark, copyright, and patents), contract drafting and enforcement, labor or employment law matters, etc. Therefore, find a lawyer who specializes in the area in which he needs help. Don’t be tempted to use your cousin, who is a residential real estate attorney, to help you with a complex trademark issue. While this may be tempting in terms of saving money, it can (and often does) cost you more money in the long run if not handled properly. So match the lawyer with the problem and you’ll be on the right track.
If you’re sure what kind of legal issue you’re facing, find out! Talk to a friend or business colleague who is a lawyer and ask for their advice on the type of problem you are dealing with. You can also call your local bar association or do some basic research on the Internet to find out the area of law you are dealing with. There are several sites that provide basic legal information for non-lawyers, such as Nola, FindLaw, and on the Zoom legal websites. This background investigation will arm you with enough basic terminology and knowledge to make the best match with an attorney whose law practice covers your business problem area.
find a lawyer
So now that you know the area of law, how do you find a good attorney who practices in that area? In the same way that he finds any other professional to help him with his business. Referrals from friends, family, and colleagues are a great way to find a trusted attorney. You can also inquire at your local chamber of commerce, local law school, and local and state bar associations. Still can’t find a lawyer who is a good match? Try the Martindale-Hubbell Lawyer Locator online at http://www.martindale.com
money matters
If you have never worked with a lawyer before, here are some basics of the legal profession regarding money matters. Most attorneys charge by the hour, so ask what the hourly rate is and an estimate of how many hours the matter may take. If the matter is small, or a typical one that the attorney handles frequently, there may be a flat fee for the entire transaction rather than an hourly rate. Be prepared to pay a fee for the initial consultation, which is standard, but not a hard and fast rule. In some cases, the attorney may require a retainer, which is money you provide up front that the attorney works with as the matter progresses.
One thing to consider is that law firms are generally divided into partners and associates. Partners are essentially co-owners of the firm, while associates are employees, albeit high-level professionals. Who demands the highest rates? Usually partners. So ask yourself if you really need a partner or if an experienced associate can handle the matter. Do you need the best litigator in the firm? Often times, the best litigator may be an associate who is still active in the courtroom, as opposed to a partner who may be more of a rainmaker generating business for the company.
In some cases, for very small matters or legal research, even a paralegal or paralegal may suffice. Ask who the best match is and don’t assume it’s always the person whose last name is on the door.
Maximizing the Attorney-Client Relationship
I cannot stress enough the importance of accurate, specific and timely record keeping and documentation when preparing to work with an attorney and throughout the relationship. A lawyer will need to undertake a fact-finding mission to best represent you and your business. Help your lawyer do his job better by sitting down at the table with all your ducks in a row. Be quick to provide the requested information, as legal deadlines are often at stake. Honesty is also vital when working with a lawyer. The best attorney-client relationships are built on mutual trust, and therefore hiding information can make or break your case. A lawyer needs all the facts to make difficult decisions with you about the best course of action for your business matter.
