Navigating Contracts
For most professional type services, particularly start-ups or those jumping into a new source of revenue, the prospect of negotiating contracts can be quite daunting. But, rest assured, there is help!
Business owners really have two (2) options for entering contracts for services with prospective clients. The first, and likely the least risky, is to hire an attorney. The same attorney you hopefully have in your ongoing “Circle of Trust”. Most attorneys who specialize in business matters will have the expertise to not only create your legal entity but possess the skill set to assist you with and through contract negotiation. Yes, you will need to pay them, but the investment will likely provide you with peace of mind and less anxiety. It is important to remember they carry malpractice insurance, and that alone, should be worth you engaging them.
Choosing an attorney, as has been mentioned in previous Blogs, is an important step in the evolution of your business. The chosen professional should have a synergy with you and understand your business or at least its goals. Dare you call them friend? Often, a close legal advisor, like your accountant or even your banker, will become more than just a consultant to your business. It is imperative you are comfortable with them as individuals, their firm and its reputation, and you value their input and feel comfortable paying the fees that come with that. Choose wisely as an attorney that does not share your moral compass, your political views, or your social concerns may be nothing but a source of frustration and anxiety. And, remember, the most expensive may not be the ideal legal advisor for you.
Illuminate sourced several legal advisors initially. Our long-time attorney had just been elected to a Judgeship, so she could no longer provide legal services, personally or corporate. We initially worked with an online legal formation service, one we used in a prior business and who follows up for annual filings. They serve that need well. But, we soon realized we required the services of a local attorney who could assist with many facets of our firm, from liability counsel to contract negotiation. It is likely one of the best decisions we made. And, we do call our attorney “friend” as well. It is with great confidence that we start the work week knowing our back is covered from a legal counsel standpoint.
Your other choice is to go it alone without legal counsel. Many professionals rely upon their Professional Liability Insurance Agent to help guide them on the proper forms required for their certification. This is essential to many professionals but it does not provide the additional layer of legal coverage that an attorney would. In an ideal situation, your firm would work with both your Professional Liability Insurance Agent and your Legal Counsel. Often, they may need to dialogue directly as well. So, if you are without legal representation on your Letters of Agreement or your Sub-Consultant Contracts, you are exposing your firm, and perhaps you as an individual, to greater risk. Think hard about this as you conduct business. As your contracts become more complicated or the revenue at stake is more impactful, having a legal eye to oversee this aspect of your business is a wise path to choose.
Remember to identify options, interview several candidates to see who is the best fit, both on a personal level and from an expertise perspective. With the right legal support, you can grow your business wisely and with a lesser degree of risk, always a positive move for any company. And, if you are unsure who to interview, ask your fellow business owners, your accountant, your friends or family for recommendations. That is how we assembled our list to speak with at formation, and we could not be happier with how it worked out with our chosen legal counsel. An endorsement from a trusted colleague or friend or family member goes a long way in this search.
So, be like Tuesday, our Canadian Barbet puppy featured in the photo above, and think wisely before you navigate any new surroundings. Your contract will dictate how your proceed and a qualified legal advisor can help provide you with that life raft you may need to get across to the other side.
Be well.
