Five Reasons Entrepreneurs should love Lawyers

By DIY Law | 3 min read
27th May 2020
Five Reasons Entrepreneurs should love Lawyers

All lawyers are liars!

Right, isn't it?

Well at least that's what we've been told and that's what the movies tell us. We see them make the guilty appear innocent and the innocent appear guilty in the cross-examination box.

As an entrepreneur, it's best you know that one of the best things you can do for your business is to have a lawyer as an ally as you run your business. It's also of advantage to know that lawyers aren't just meant to be called on when you have litigation issues or as we like to say in this part of the world, "you want to sue somebody".

So, let's consider 5 reasons why entrepreneurs should absolutely love lawyers.

1.  Lawyers help keep your business in order.

From guiding you through your business incorporation process to helping with all the documentation needed to run your business properly, lawyers ensure that you don't go about doing your business with the fear of being caught up on the wrong side of the law. Beyond preventive measures, they also ensure your business is legally up to date as laws are made or reforms are enacted.

Imagine the heartbreak you would have as an entrepreneur if you lose an investor because there were fundamental legal mistakes made in starting or in running your business.

2.  Lawyers help you pay attention to details

One of the reasons entrepreneurs detest sit down sessions with lawyers is because of the fear of the many probing questions lawyers would ask on processes, intentions, and actions. Lawyers do this because they understand that as an entrepreneur you have many things running through your mind and you might miss out on relevant details that might hurt your business in the short or long run.

Certain issues such as terms that should be in your employee contracts, partnership agreements and other relevant issues are always well catered for by your lawyer, and as such will be drafted with much precision and accuracy. 

3.  Lawyers help you with your investment plans

If you ever decide to bring in investors, you want to make sure you get the best possible deal on the best possible terms. You need your lawyer to ensure this happens without hiccups as every method of investment has specific legal issues, often dependent on the level of sophistication of the investor.

Some issues to consider are whether to structure the investment as equity or debt, the vesting schedule, what valuation to use and price adjustments at closing. It is also important to negotiate the degree of control your investors will have in the company by detailing the board structure, voting rights, whether the investor can approve certain transactions and whether they have the first right to any future rounds of funding. Your lawyer (who should have significant start-up experience) will have significant investment experience and will help you anticipate all the issues you might have in closing a deal.

4.  Lawyers help you navigate the regulatory environment

Depending on the nature of your startup, you might be subject to any number of regulations that affect your business. Depending on the products or services you offer, it is important to understand the necessary regulations that may affect your businesses. Your lawyer can advise you on which regulations you need to comply with, and how you can avoid fines for non-compliance.

Also, some regulations are complex and understanding your obligations will, of course, require your lawyer. The repercussions of non-compliance are mostly grave and could include the closure of your business - an expensive and potentially devastating consequence for your company. 

5.  Lawyers are your friends in the day of seeming trouble

This, of course, is the most popular thought that comes to mind when lawyers are mentioned. As much as you shouldn't wait for times of trouble to speak to your lawyer, your lawyer is always your first point of call when you have legal issues or litigation hovering around you.

A customer could sue your business for a perfectly legitimate reason. It does a lot of good to already have a lawyer standing by. Or will you prefer to start scrambling to find a good lawyer to handle the case at that time?

So, dear business owner, for the sake of your business, get a lawyer today. If your question is how do I find the right lawyer for my business? Well, we've got you covered, read this to find out what to consider in choosing a lawyer for your business. After you've read this, your next step would then be to get the lawyer that fits your needs. You can simply visit our engage platform where you will find several seasoned lawyers categorized by their specialties and years of experience. You will surely find one that fits your needs.

DIY Law
Legal, Simplified. | Winners of Innovating Justice Awards 2015. | Creating access to legal for African entrepreneurs. Posts are not legal advice.
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