Entrepreneurs pour everything they have into their new ventures. However, they often forget to hire a business attorney. If they consider doing so, they might decide it is too expensive. Not working with an attorney could be disastrous and lead to the business closing its doors before it has an opportunity to take off.
According to Growthlist.co, 19 percent of businesses fail due to legal issues. These issues could easily be avoided by hiring a business attorney. The attorney ensures everything is legal and valid and that the company complies with all rules and regulations.
Legal Risks New Entrepreneurs Face
A poorly written contract could be the downfall of a startup. When misunderstandings and disputes arise, people often head straight to the courtroom. Vague agreements are also of concern. An attorney ensures all contracts and agreements are clear and complete to prevent these types of issues that can lead to a business closing its doors forever.
Failing to comply with rules and regulations can lead to costly fines. These fines drain the company’s resources, leaving the business owner with little or no funds for lead generation, marketing, and other crucial areas. The business may not survive after paying these fines.
Be Proactive
Handling things independently without the help of an attorney may seem like an excellent way to save money. However, being proactive will save the company more over time. Hiring an attorney before they are needed can save the company large sums of money. The attorney will draft or review all contracts to ensure that the terms are legally sound and compliant with relevant laws.
Tailored contracts address the company’s unique circumstances, protecting the owner’s interests while ensuring compliance with the law. The attorney might also draft shareholder or franchise agreements. They are invaluable when the company is creating a privacy policy, as they ensure the business owner complies with all laws and regulations in this area. If a company deals with clients or customers overseas, it must be aware of the privacy policies of the countries in which it operates. The attorney can help with this.
Being proactive and hiring an attorney before the business opens ensures that the attorney gets to know the company. The attorney will be familiar with the inner workings and can resolve issues more efficiently. For example, if a problem arises with a contract they have written, they will already be familiar with its terms, so they will need less time to address the concerns and take any necessary action.
How Can An Attorney Be of Help?
An attorney can help a tech company develop Terms of Service or draft a privacy policy. A retail shop owner might need help with lease negotiations or complying with local fire codes. A restaurant might struggle with health code compliance, while a healthcare provider may need assistance with employment law. The attorney will assist the client in handling these matters and others to ensure the business has a firm legal foundation.
Every entrepreneur should consult with an attorney. Funds may be limited, but this is one area where a business owner cannot afford to cut corners. Hiring an attorney in the early stages of the business will save time and money in the long run. Individuals who retain an attorney have someone to turn to when a legal issue arises, and the peace of mind this provides is priceless.
