As an entrepreneur, one of the earliest and most impactful lessons I learned was the critical importance of quality legal representation. Initially, like many business owners, I sought to minimize expenses by hiring Cheap Lawyers, believing it to be a smart way to conserve capital. However, experience soon revealed a stark truth: opting for cheap legal services can be one of the most expensive mistakes a business can make. The adage “you get what you pay for” rings especially true when it comes to legal counsel.
Many entrepreneurs, especially in the early stages of their businesses, might hesitate at the prospect of engaging a lawyer at all. There’s an understandable reluctance to incur legal fees, fueled perhaps by the common perception of lawyers as costly and only necessary for worst-case scenarios. Imagine a world where handshakes were enough, where trust was implicit, and legal disputes were nonexistent. While that ideal world remains a distant dream, the reality of today’s business environment is that legal protection is not just advisable, it’s essential. When disagreements arise, and they inevitably do, having a competent and experienced lawyer in your corner is not a luxury—it’s a necessity that can safeguard your business’s future.
My initial aversion to engaging lawyers stemmed from a place of naiveté. Early in my entrepreneurial journey, the mere mention of a contract felt almost offensive, as if suggesting a lack of trust. I aspired to operate on good faith, believing in the inherent integrity of others. Requesting a contract felt counter to this ethos. This perspective shifted dramatically after a conversation with my father, a former FBI agent, whose insights illuminated the true purpose of legal agreements.
He explained that a contract isn’t a statement of distrust, but rather a tool for clarity and mutual understanding. It’s about ensuring that all parties involved share a common understanding of the terms and expectations. Putting agreements in writing establishes a foundation of transparency and eliminates ambiguity from the outset. This explanation was a revelation. Contracts, I realized, weren’t about suspicion, but about fostering healthy, well-defined business relationships built on shared clarity. From that moment on, I became a firm believer in the power of comprehensive contracts, meticulously detailing every expectation to prevent misunderstandings and cultivate stronger, more respectful partnerships.
The next critical lesson involved understanding the crucial difference between cheap lawyers and truly valuable legal counsel. Initially, I equated a “good” lawyer with an aggressive, combative attorney – someone who would relentlessly fight and never concede. This perception was profoundly misguided. The “fight-to-the-death” lawyer, focused solely on aggressive tactics, can actually be detrimental to your business. Such an approach often alienates potential partners, escalates costs through prolonged disputes, and prioritizes conflict over resolution. Ultimately, the only guaranteed winner in this scenario is the lawyer themselves, profiting from protracted legal battles while your business bears the financial and relational costs.
Through hard-earned experience, I redefined my understanding of what constitutes a great lawyer. A truly exceptional lawyer prioritizes fairness and balance from the outset. They draft contracts that are equitable, rather than seeking to create lopsided agreements hoping the other party won’t notice. A lawyer aiming to exploit the other side is not a lawyer who serves your long-term business interests. Business thrives on enduring relationships, not on short-sighted gains at the expense of others. The best lawyers are deal-makers, not deal-breakers. They guide you through negotiations, advising on where to be flexible and which points are truly non-negotiable. They strive for mutually beneficial outcomes, ensuring your interests are protected without resorting to unnecessary conflict or allowing you to be taken advantage of. These lawyers are invaluable, and their expertise justifies their fees, regardless of the hourly rate.
My encounter with Chip Lion of Morrison Foerster in San Francisco perfectly illustrated this point. He represented an investor on the opposing side of a negotiation I was involved in. Despite being on the other side of the table, I was deeply impressed by his approach to the negotiation. His skill in navigating complex terms and facilitating a fair agreement was so compelling that I hired him to represent my own interests immediately after the deal concluded. This experience underscored the importance of seeking lawyers who prioritize balanced, respectful negotiations, fostering positive long-term relationships rather than adversarial wins. While receiving a bill from a top-tier lawyer like Chip still might cause a momentary pause, I never question the value. The peace of mind and strategic advantage they provide are unequivocally worth the investment.
Building a robust legal strategy involves assembling a team of specialists. Law is a vast and intricate field, and no single lawyer can be an expert in every area. Just as you wouldn’t expect your family doctor to perform brain surgery, you shouldn’t rely on a general practitioner lawyer for specialized legal needs. Different areas of law, such as corporate law, tax law, litigation, and employment law, require distinct expertise. Establishing relationships with lawyers specializing in these diverse fields is crucial for comprehensive legal coverage as your business grows. It’s wise to cultivate these relationships early on. Lawyers who grow with your company gain a deeper understanding of your business’s unique needs and long-term objectives, enabling them to provide more proactive and tailored advice.
For instance, Cass Butler of Callister Nebeker & McCullough served my companies for over 15 years, expertly handling employment and litigation matters. His deep understanding of local employment laws and his proactive approach to conflict resolution were invaluable. Instead of escalating disputes, he prioritized early and fair settlements, consistently preventing costly and protracted litigation. Like Chip Lion, Cass Butler’s bills were always a worthwhile investment, delivering peace of mind and effective legal solutions.
The only regrets I have concerning legal expenses are the times I attempted to cut corners by hiring cheap lawyers or forgoing necessary legal expertise altogether in the name of short-term savings. While lawyer jokes might be a source of amusement, underestimating the value of quality legal counsel is no laughing matter. In the long run, nothing will prove more costly to your business than cheap legal help, and nothing more detrimental than making the mistake of hiring the wrong lawyer. Investing wisely in experienced and reputable legal professionals is an investment in the security and future success of your business, ensuring that you are protected and positioned for growth.
~Amy Rees Anderson
