When You Should Invest In a Lawyer

We’ve already discussed why investing in a lawyer is probably one of the best investments you can make. But we get it—money doesn’t grow on trees. That’s why I sat down with Jenn Muse, an employment attorney with Honigman LLP here in Detroit, to talk through some of the times a trusted advisor can make all the difference.

You Don't Need a Judge Judy Situation

Most of the “lawyer” television shows include a fast-tracked, tense situation where something has gone terribly wrong and an attorney gets called to help fix it. Real-life lawyering looks very different for Jenn: “The majority of my day is spent discussing ways to help businesses prevent and avoid these difficult situations.” The old adage is true—an ounce of prevention is worth a pound of cure, particularly when it comes to legal situations. A relationship with an attorney whose advice you trust is a long-term commitment. “My goal is to become an expert in you—your business, your operations, your strategy, your passion, and your plans for the future,” Jenn emphasizes. By focusing on you, an attorney is positioned to become an ally and an advocate who can help you game plan both operational and personnel (as well as personal) business decisions.

So, When Does Talking to a Lawyer Make Sense?

“There is no one-size-fits-all approach. Some people like to have their advisor on call to answer quick questions and talk through big business decisions and any legal ramifications. Others prefer a need-based relationship,” says Jenn. Here’s a quick hit list of when you may find it helpful to invest the money and talk to a lawyer:

• When You’re Setting Up the Business: If you are in a partnership or have a group of founders and collaborators, talking through the formation of the business and setting up the proper paperwork is key. “A former professor of mine liked to say that there were no business problems, only people problems,” Jenn muses. “Like a marriage, a business starts out happy and not thinking about any possible end. Save yourself some of the pain—think through how you and your co-founders will work and interact with each other, resolve any concerns or issues that come up, and eventually exit the business.”

• When You’re Ready to Hire Your First Worker. Will they be an employee or an independent contractor? Will they be exempt or not exempt from overtime compensation—how do you know? Do you need to run a background check? What questions should you ask in an interview? How do you protect this business that you’ve poured your blood, sweat, and tears into? An attorney can help you answer these important questions as you’re gearing up to bring someone on.

• When You Find Yourself in a Difficult Situation. Did a pandemic hit and affect your ability to continue your contracts? Did a former employee file a lawsuit against the company? Talk to your trusted advisor about how to handle these tough situations, and then whether, and how, to change operations or procedures.

• When You’re Ready to Make a Change. Changes happen, and attorneys can help you think through and manage those changes, including:

o When it’s time to alter your company’s formation documents;

o When you need to say goodbye to an employee who isn’t meeting expectations;

o When you’ve got an investor in your business;

o When you need to manage operations during a global pandemic; and

o When you’re ready to move on.

Bottom Line

The actions you take today build your future and your legacy. Investing in a lawyer during these critical times can help set you and your business up for success. Plus, you will likely end up with not only an attorney, but an ally. Need more business planning help? Take the Proxie Launch Course! Proxie has partnered with Honigman LLP to provide legal resources for small businesses as they develop their business plan and strategy during the course. From targeted high-level presentations to an opportunity to ask an expert, Proxie Launch participants have exclusive access to specialized content from Honigman lawyers. Have a question on this content or ready to reach out? Please connect with Jenn Muse from Honigman’s Emerging Companies Group at jmuse@honigman.com. Honigman LLP is a leading law firm for businesses in the Midwest.