Growing a million pound business – 5 foolproof reasons why using a business lawyer is a great way to
If you are committed to growing your business past the million-pound mark, hiring a good lawyer is an essential part of the process.
Early on in your business or entrepreneurial venture there are dreams of building and growing your company through either organic growth or mergers and acquisitions, some even have the vision to launch on the stock market through an initial public offering (IPO). Each stage of the business journey has its unique set of challenges, especially if you are trying to do so without a team of advisers.
A knowledgeable lawyer can be one of your best resources to assist you as you navigate through the development of a business from start up to a growing business, a knowledgeable lawyer can be your best resource to advise you through the establishment, expansion and maturity stages of your business through legal knowledge and competence.
Using the services of a business lawyer can benefit you and your business with the business formation process, protecting your intellectual property (IP), contract negotiation and management, reducing business risks by advising on potential areas of risk avoiding lawsuits, and initiating legal proceedings when required to protect profits and business structure.
A lawyer can also assist in providing unbiased advice on the structure and challenges you may face as you develop the growth of your company. In addition to providing assistance on transactional matters you can also work with your lawyer to talk, explore, offer insights, and learn together to provide meaningful results and impact which will allow you to continue to work on growing the company rather than working in the company.
Here are five business reasons why your company may benefit from the involvement of a lawyer within your business.
1. Business structure
Whether you are a seed, start-up or thriving business the legal structure of the business can allow you to succeed or hinder your growth, a lawyer can review your business structure, legal ramifications and other elements as you grow and develop your business. Guidance on the business structure during the business journey from applying for seed or venture capital through a bank or alternative funder, raising finance is a factor of a company’s stage of development when the investment occurs your lawyer can assist with negotiations and advise on the perceived risk and the relationship between you and the finance provider.
2. Building relationships
Once the business structure has been formed, developing the growth of your business in accordance with your business plan, a business lawyer can also assist in both applying the law and counsel in implementing the business and turnover goals.
A business lawyer can provide counsel on various issues that pertain to the law in order to deal with problems as they arise, or prevent them in the first place. They can also provide assistance with strategic guidance on processes and putting systems in place, providing counsel in deal negotiations.
Having a business lawyer that is familiar with your business will assist when internal issues may arise or exploring new ventures, in building smart sound relationships with new joint venture partners and investors that greatly benefits your chances of success and adds inherent value to your company.
3. Contract negotiation and management
Using the services of a business lawyer is not only useful when negotiating deals but also to provide well-written carefully drafted contracts in accordance with the terms of the deal and also to provide careful review of contracts which are vital to quality business transactions.
Agreements should be reviewed and discussed with your business lawyer when you are dealing with investors or partners to ensure the terms of the deal are reflected in the agreement, as in the event of dispute (discussed in more detail below), the intentions of the parties at the time of entering the agreement are the most contentious area where issues arise in any litigation proceedings and it is quite often down to the language used in contracts that the most meticulous lawyers will argue out to determine what was intended by the parties when the agreement was made.
It is therefore pertinent that you should thoroughly understand your rights and obligations within the contract, what your industry standard norms are, and how, (if at all) they affect the deviations that may be drafted into the contract. A business lawyer will be well versed in these matters and will be able to provide counsel and clarity when necessary to provide additional or alternative recommendations.
4. Protect your business assets
In changing economic times, the protection of your business is vital to minimise risk. A business lawyer can help protect confidential information, trade secrets and other valuable data by identifying the rights that need protecting and contracts that need to be in place to do so.
The intellectual property (“IP”) of your company is one of your most valuable assets. A lawyer can assist with registering your products and services for trademark and copyright protection. Protecting your business assets as you grow and develop your business will also enable the partners of the business to agree on succession planning and exit strategies.
5. Minimise or avoid legal disputes
Negotiations and disputes are part of the business journey, by using the services of a business lawyer and using their knowledge as you develop and grow your business should reduce the likelihood of being involved in a lawsuit. There are alternative dispute resolution mechanisms that can be used rather than using the court process, if the parties are in agreement alternative methods such as mediation or arbitration, which is legally binding, are more flexible and time efficient methods to use than the court process.
Litigation is costly, lengthy and stressful for all parties involved, being pro-active and working with a business lawyer can ensure that you retain your business profits, manage cashflow and minimise business risks as you grow your develop your business turnover from a million to several million pounds.
Your business lawyer is someone who can work with you to diagnose your problem, perform any “minor surgery” and ensure that they have the tools and knowledge to assist you with whatever issues come up in your business.
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