| A good lawyer understands the business
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| Throughout the life of a business, an owner will likely need
a lawyer many times. Law is complicated - the legal system has been built one
case at a time. |
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| Legislation is often out of date and generally not very
friendly to owner-managers. The system tends to favour government and big
corporations with a lot of time and financial resources at their disposal. |
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| An entrepreneur usually needs a lawyer at the birth of a
business to incorporate the company, set up the partnership, or register the
sole proprietorship. But beyond those early days, a highly competent legal
adviser is crucial to the continuing operation of the firm. |
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| How do you find that great lawyer? Here are some
guidelines. |
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| Find someone who understand you. Most people who
become lawyers are knowledgeable about the law, but they know little about
running a business. Great lawyers start client relationships by understanding
customers' business strategies. |
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| They get to know you as an individual and they understand
your hopes, desires and goals. Then they look at the legal issues and determine
how to get you what you want. They can't be the right lawyers without this
knowledge. |
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| One entrepreneur signed a contract with a significant penalty
clause for failure to perform. He went to a lawyer who was an expert in this
field to help eliminate the penalty. The lawyer gave him the technical answers
but did not recognize the business and the personal issues that were critically
important. |
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| The entrepreneur found a more compatible lawyer who delivered
a solution that matched his needs. |
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| Find someone who can communicate effectively. Lawyers should
be great communicators who fully understand your goals and make sure they are
on target. |
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| On any matter, they should provide you with a detailed
analysis in writing. They should start with a summary of their understanding of
the business issues, then move on to the technical matters. Most lawyers
provide written summaries of meetings and the narrow legal issues, but very few
will take the time to provide a complete picture of the business
implications. |
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| This is a relationship built on trust. You trust that your
lawyer will act in your overall best interests, while the lawyer trusts that
you are providing complete information. You want someone who communicates the
good, the bad and the ugly. |
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| Consider the case of one owner-manager, who got an opinion on
a problem from her law firm, which basically dealt with the specific legal
issue. When she asked another firm for its opinion, she received a much more
comprehensive analysis that included the strengths and weaknesses of her
position, the likely outcome, and suggested strategies to eliminate the
problem. She quickly switched to the practice that cared enough to communicate
effectively. |
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| How does the lawyer run his business? When you're
forging a relationship with a lawyer, look at how he runs his own operations.
Does he invoice every month on a timely basis? Some lawyers like to accumulate
time for months before sending a big bill. Does he return your calls promptly?
Legal advisers that do not phone back give the appearance that you are working
for them. |
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| Look at the quality of the people supporting your lawyer. If
you do not see competent employees, chances are this person will not provide
the service you are paying for. Does your new lawyer bill for value added or
for time? Most legal advisers charge clients based on the hours they put into a
file. But good ones look at the value added and the outcome and adjust their
bills accordingly. |
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| Word of mouth is always an option. Ask other successful
entrepreneurs for the names of their legal advisers. After questioning a number
of astute people, you will quickly put together a list of who to interview. You
want a lawyer who can act as a team leader and who can bring in other legal
experts when required. And the person should work well with other professional
advisers. |
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| Just as with new employees, you will select your lawyer based
on the compatibility between the two of you. No matter how talented the person
appears to be, if this chemistry isn't right, don't hire him. |
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| Published June 8, 1998 |
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