5 Reasons Your Startup Needs a Lawyer

One of the biggest problems with running a small enterprise lies in the fact that an average Australian startup has between 3 and 19 employees. With so few people on your retainer, does your business really have enough money to afford a reputable lawyer? Regardless of your budget, having a capable legal counsel is mandatory in today’s business world and here are five most compelling reasons why.

1. Drafting contracts

Contracts are the mortar that holds the business world from falling apart. While verbal agreements may be held in high regard by some people in the business world, the truth is that if you want a guarantee that something will be honored you need to put it on paper. If there’s any ambiguity in the contract, the court is most likely to rule in favor of the other party. Moreover, before you sign anything drafted by the other party, you want the document to be studied by your lawyer/legal team.

2. Employee issues

The next thing you need your lawyers for is to advise you in the matters of fair employee treatment. Hiring and firing employees are far from simple and what you need is a proper legal context. You can’t discriminate based on race, color, gender, religion or disability status and you need to respect every applicant’s right to privacy. Asking personal questions, implying things that you can’t deliver on and ignoring regulations regarding the minimum wage can land you in a whole world of trouble. This is one of the problems that a skilled lawyer can help you successfully avert.

3. Commercial disputes

Commercial disputes are some of the biggest issues that small businesses can face. A business world is a well-oiled machinery that only works if every single one of its parts is performing its duty. The problem is that some entities may fail to deliver on their end of the bargain which is something that might put you at jeopardy, as well. These disputes usually involve issues regarding the price, invoice terms, quality, quantity or time of delivery and you could find yourself on both ends of the dispute. This is why finding a team like David Kam & Co Solicitors which specialize in resolving these issues might be a great boost for the security of your business.

4. Filing for IP protection

In the era of plagiarism, cybersquatting and similar fraudulent concepts, what you need to do is find a way to protect your brand. IP protection mechanics like trademark, copyright and patent are there to help you keep your ideas and products safe, however, you need someone who knows how to properly file for them. Even more importantly, what happens if someone deliberately infringes on your IP. You need to have to fight back as efficiently as possible, which is why you need some legal aid.

5. Advertising

You would be shocked to learn how many ridiculous false advertising claims have gone through just because the person editing it didn’t consult a lawyer beforehand. For instance, Red Bull had to pay about $13 million to its customers for not giving them wings (as was implied in their commercials). While this may sound ridiculous, the occurrence itself didn’t cause much laughter in the headquarters of Red Bull. Fortunately, with a proper legal counsel, such a thing can be easily avoided and this risk mitigated.

In conclusion

As you can see, running your business without an adequate legal safety net is outright irresponsible and dangerous. Of course, as a small business you might not be able to have an in-house solicitor, yet, outsourcing this function is always an option. One that gives you outstanding results and provides great cost-efficiency at that.

Mike is an Australian business consulting specialist. He’s working with companies that outsource their IT maintenance. He often writes about technology, business and marketing and is a regular contributor on several sites.