#161 The Questions To Ask Before You Engage A Business Lawyer
The process of engaging a business lawyer can feel a little daunting for business owners. You don’t know what you don’t know and it can be difficult to know where to start. How do you know if someone is the right fit for you and your business?
Your relationship with your business lawyer is a significant one for the health of your business so this is something you want to get right. To help streamline this process and make it as easy as possible, today I’m sharing some key questions you should ask before engaging a business lawyer.
Find a Business Lawyer Who Knows Your Industry
The first step in finding the right business lawyer is to ensure they have expertise in your industry. Whether you are in the creative field or another niche, it's crucial to work with a lawyer who understands the intricacies of your business. Asking questions like how many clients they have in your industry can provide valuable insights into their experience and ability to add value to your business.
Understand Their Work Process
Collaboration and communication are key when working with a business lawyer. It's important to ask how they work and if you will be able to review drafts, ask questions, and provide feedback. In my legal practice, I love to collaborate with my clients and give them as much time and opportunities as they need to feel satisfied with the outcomes of their engagement. But other lawyers don’t work like that. This is why it’s really important to clarify the process before you sign on the dotted line.
Clarify the Billing Structure
Knowing how your business lawyer charges is essential to avoid any unexpected surprises. Lawyers charge in different ways from value-based pricing to a fixed fee pricing structure or a time-based model. Understanding the billing structure upfront allows for transparency and clarity on what services are included and how much you will be paying. This way, you won’t get any surprise invoices that you weren’t expecting.
Establish Communication Channels
Effective communication is vital in any professional relationship, including with your business lawyer. Asking how they prefer to be contacted, whether it's through phone calls, emails, or another platform, ensures that you can easily access the support and guidance you need. Understanding their preferred communication methods can streamline the process and avoid misunderstandings, making the entire process so much smoother.
Connecting on a Personal Level
Before making a decision to engage a business lawyer, take the time to jump on a call with them. Establishing a personal connection and ensuring that you vibe well with the lawyer is essential for a successful and long-term professional relationship. Feeling heard, supported, and comfortable with your lawyer is crucial for the success of your business endeavours. And if you don’t mesh well, you can continue on your search to find someone who is a better fit.
When it comes to engaging a business lawyer, it's essential to ask the right questions and ensure that the lawyer aligns with your needs and expectations. By asking questions about these key areas, you can make informed decisions and choose a business lawyer who can accelerate your business success.
Full Transcript:
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[00:00:00] Tracey: Hello everyone. Welcome back to another episode of the rise up in business podcast. As always, thank you so much for joining me. I know we're spoiled for choice these days with podcasts, and I'm very grateful that you choose to spend your time with me.
[00:00:34] I'm going to share some tips with you in today's episode around questions to ask when you're looking to engage a business lawyer. The reason I want to share these tips in today's episode is because lately, new clients have said to me, Tracey, I've held off reaching out because I don't know what I don't know.
[00:00:49] And I didn't know how to start. I've also heard stories of people ending up working with the wrong lawyer. And the experience hasn't been great. It's cost them a lot of money because they've had to start again elsewhere. And I wanted to share this with you in case you are in that situation where you are wanting to engage a business lawyer, but you dunno where to start and you dunno what to ask.
[00:01:11] This is not something we wanna get wrong. We don't want this to be unpleasant. It shouldn't be unpleasant. Your relationship with your business lawyer should be really positive. Really empowering and you should feel confident, you should feel confident picking up the phone at any time to your business lawyer to ask a question that you need answered and you shouldn't feel nervous or hesitant or worried or any of those things.
[00:01:36] So let's dive in and I'm going to share with you my suggestions on what to ask. When you're looking to engage a business lawyer, first and foremost is find a business lawyer who knows your industry. If you're a creative, find a lawyer for creatives. It's no good having the best mergers and acquisitions lawyer doing your interior design agreement.
[00:01:59] It's no good. They don't know the ins and out of your industry. They don't have experience with businesses like yours, so they don't have value to add. If you want to go and engage somebody to do a takeover or a hostile takeover or something like that, they're going to be great, that's not what you're after. That's not going to help you find somebody with experience in your industry, with experience doing what it is that you want them to do. That's the big one to ask the question. Do you have other businesses like mine? Do you act for other businesses like mine?
[00:02:35] How many graphic design clients do you have? Or how many interior design businesses do you have? How often do you draft these types of contracts? Ask those questions because that's where you get real gold when you're engaging a lawyer. If they've got expertise doing what it is that you need them to do.
[00:02:53] So that's the first thing. The second thing, ask them how they work. This is a big one. My view is if you are a small business owner, you want a business lawyer who you can collaborate with, who you feel supported by, who you can ask questions of and get the answers you need. If, for example, you're going to engage a business lawyer to draft your contracts or your agreements for your business.
[00:03:20] Think about what it is that you really want out of this process. And my guess is that you want to feel really happy, confident, and satisfied. at the end of the engagement. So once that lawyer sends you your documents, you want to feel confident and proud of the documents that you've created together. So ask them how they work.
[00:03:44] Do I get an opportunity to review the drafts before you finalize them? Do I get an opportunity to ask you questions? Do I get an opportunity to share with you when I don't understand what a clause means, or if something feels really icky in the documents and I don't like it. Do I get that opportunity to engage with you to ask?
[00:04:04] Now, I know from my experience in the industry that some lawyers don't give you those opportunities. They say, no, this is what you get. You're engaging me from my expertise. I'll give the documents to you and you implement them. Good luck.
[00:04:18] Myself included, will give you all the time you need to review those drafts, to ask those questions, to dive into the detail, to go back and forth, to ask for revisions when things don't feel right. There's two camps here, so work out what it is that you want, and then ask the question to make sure they're able to give it to you.
[00:04:43] I know I'm not the lawyer for everybody. I am totally okay with that. I know some clients don't want to spend time on zoom with their lawyer going through their drafts. They don't want to, and that's okay. I'm not the lawyer for you. I like to make sure every single client that I work with has an opportunity to ask me all the questions that they have.
[00:05:07] About their documents. But before we even get to that, I like an opportunity to be able to explain the documents to my clients. So they know this is why she's drafted this. This is why Tracey puts that this is why Tracey recommends this clause. So we can talk about what approach I've taken with the drafting.
[00:05:25] We can talk about why I've included what I've included, and we can talk about how to use the documents. So my approach is very holistic. Not all lawyers are like that because not everybody wants that. So work out what you want and then ask the question, how do you work? What's your process?
[00:05:44] The next thing I suggest you ask is find out how they charge. Find out how your new business lawyer charges. So do they charge you on the basis of value based pricing or fixed fee pricing? So you want to get X, Y, and Z done, this is what it'll cost and this is what's included. Fantastic. Packaged up with a bow. Lovely. You know exactly what you're getting and you know exactly what you're paying.
[00:06:11] Or do they charge on a time spent basis? So you will pay for what you use, kind of like pay as you go. So if you need more time, you pay more. If you need less time, you pay less. So it's a time costing model. Traditionally, and we all sort of have experiences of lawyers where we get those bills where they've got six minute increments charged for perusing your email, considering your response, telephone attendance.
[00:06:40] That's the traditional time cost model where most traditional law firms will charge in that way so that you're paying for what you're using. So the more times you ring, the more you pay, the more work your lawyer has to do, the more you pay. So they charge on that time cost model. Personally, I don't. That's one of the many reasons why I left traditional practice because I find the time costing model to be really ineffective in providing value to clients.
[00:07:09] So I charged on a value based fixed fee model. So my model is, great, let's have a call. This is what you need. We've talked it through. Okay, this is what you need. This is what you'll pay. That's it. The reason I do that is because one, in my experience, that's what my clients want. They want to know what they're getting and what they're paying. Line in the sand.
[00:07:33] Second, I've been doing this long enough to be able to back myself. So I know what it's going to take. I know what it is that I'm going to charge you to do this work. It doesn't feel aligned for me to have to say to a client, Oh gosh, well, I don't know what sort of client you're going to be so I don't know how much work it's going to take to deal with you so I don't know how much I'll charge you. I'll charge you according to how much time I have to spend on your matter. For me, in my business, that's not aligned so I don't do it. But it is aligned for some lawyers and that's okay. Find the one that works for you though. But being really clear at the beginning by asking the question, how do you charge, is really important because in my view, there's no excuses to ever receive an invoice that you weren't expecting.
[00:08:21] None service providers shouldn't be doing it and you shouldn't be caught out because you should always be asking the question, what am I going to be paying for? When am I paying? When am I expected to pay? What am I paying? Have crystal clear clarity on exactly how they charge and what you will be paying.
[00:08:38] The next question I suggest you ask, which is not something that probably jumps to the forefront of your mind, but ask them how they like to be contacted. My view is when you're working with a business lawyer, you need access to them for the support that you need. You're not necessarily going to know the precise level of support you need but when you do need it, how can you get it?
[00:09:04] How can you get the support you need? You're entitled to the support that you need. That's why you're engaging a business lawyer. So what does it look like to contact them? So ask the question. Are you a lawyer that allows me to phone you and leave a message and will you call me back? Or is it email only?
[00:09:21] Or is there another platform? Other lawyers have different platforms and different methods of communication. For me personally, email or phone. I will answer my phone if I can and if I can't, I'll return your call if you leave me a message. Similarly, I'm very good on email. So I'm very good on responding to emails and then I'll always let you know my rough turnaround time. Depending on my workflow. I'll always let you know. So I always have that conversation with my clients. If you've got questions, reach out this way. I'll get back to you. And some clients love the opportunity to pick up the phone. Others don't.
[00:09:55] They prefer to send an email when it comes to their mind and that way they know that they've dealt with it. And I'll get back to them when I can. Every lawyer is different. So ask the question because you need to know that who you're engaging is able to provide you with the support that you need and knowing how best to communicate is really important.
[00:10:14] We're actually working through my mom's probate at the moment and the lawyer who we're dealing with is very good, but he's non responsive on email. He's just non responsive on email. And I worked that out really quickly because I asked the question, but he answers the phone every single time I ring. He answers my questions there and then, and then he actions it.
[00:10:35] So I know not to email him. He probably won't see it. He probably won't read it. I'm better off just picking up the phone. Fantastic. That's cut out so much delay and frustration. Imagine if I was still sitting here a week later going, Oh gosh, he hasn't responded to my email. I've worked out early on, he probably hasn't seen it. I'll pick up the phone and ask the question. So the same goes for you work out early on how it is that your business lawyer likes to be contacted and do that. That saves so much time and frustration.
[00:11:06] And the fifth point that I want to share, it's not so much a question, but a hot tip. And that is. Jump on a call with a business lawyer before you engage them. Your relationship with your business lawyer is really important and I just spent time talking about the support that you need and making sure you get the support that you need.
[00:11:27] It's a really important relationship and the role that the business lawyer plays is a really important one as a deeply trusted advisor for what you need in your business. Therefore, it's important that you vibe with them. It's got to feel right. If there's friction or it's a rough or if you're just missing each other, it just doesn't feel right, then chances are it's not going to be long term and chances are, it's probably not going to be a professional relationship that's going to serve you. You need to vibe with them. So looking at someone's website is one thing, following them along on social media is another. That's great. But it's very different when you actually get on a call with them. Just pick up the phone, have the conversation. Most lawyers will offer you the opportunity for a free chat. We most certainly do because you need to feel comfortable that this is the right lawyer for you and that you have that connection and it feels right.
[00:12:19] Because like all relationships, if it doesn't feel right, It's time to move on and find somebody where it does feel right so you can get the support that you need. So, like I said, it's not a question, this particular point, it's just my hot tip, big takeaway, jump on a call with them before you decide to engage them to make sure it feels right. And if it doesn't feel right, keep looking because it's too important of a relationship to get it wrong, and too important of an investment In your business for it to not work.
[00:12:55] Remember when you are thinking about engaging a business lawyer, you need to feel heard. You need to feel heard and you need to feel supported. You deserve that. You're entitled to that. So if it's not feeling right, if you're feeling uncomfortable, if you're not feeling supported, chances are it's not the right fit for you.
[00:13:16] My advice is to part ways, move on and find a relationship where you do feel heard and you are supported. So they're my tips for what to ask and what to think about when you are looking to engage a business lawyer. Let's recap. First of all, find someone who knows your industry, who knows your business and who can add real value to you.
[00:13:40] Ask them how they work because you need to know what involvement you're going to have and how they collaborate with you. Find out how they charge. No one wants surprising voices. Ask them what the best way is to contact them. That's really important for long term success and jump on a call with them to make sure it feels right before you decide to engage them.
[00:14:05] I hope you have found this to be really valuable. I've loved sharing this with you. As I say, it comes up a lot new clients share stories of resistance with me and they share previous poor experiences that they've had. So my intention with sharing this with you is to help you move forward with confidence when you're looking to engage a business lawyer and hopefully avoid some of the pitfalls that I've seen people experience in the past.
[00:14:30] As always, if you know someone else in business you think would benefit from listening to this episode, please feel free to share because together that's how we get the podcast into the ears of even more business owners. Thank you so much for joining me as always. I appreciate your time and I'll catch you next week.
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