If there’s one thing every startup needs in today’s business climate, it’s a capable lawyer. Why?
First of all, laws and regulations are changing quickly, and it’s not an option for your startup to be non-compliant. For example, General Data Protection Regulation (GDPR) regulations in the EU are much stricter than US laws, so if you’re doing business across borders, it’s essential to understand and comply with all applicable laws. Also, lawyers provide valuable advice about contracts, licensing agreements, and other legal documents. This comes in especially handy during negotiations with investors or when acquiring new partners. Hiring a lawyer significantly decreases your chances of landing in legal trouble, such as intellectual property disputes or employee lawsuits.
Here’s what to consider when looking for an attorney to work with your startup.
Prioritize Specialization
The legal field is varied, and lawyers specialize in different areas. Therefore, you should prioritize finding an experienced attorney who specializes in the type of law your startup needs. For example, if you’re launching a software platform, you’ll need someone with expertise in technology law. If your company is focused on retail products, you’ll want to find a lawyer well-versed in consumer protection laws.
Otherwise, you risk hiring someone who doesn’t understand the nuances of your particular industry. Imagine the pitfalls of a lawyer who’s never used or heard of financial management software tasked with condensing a contract document for it down to its most critical points.
Look for Connections
When searching for a lawyer, personal recommendations can be invaluable. Why? Because you can better trust the experience of someone who has already worked with a particular attorney.
If you’re part of a startup community or accelerator program, they may have connections. Many times, accelerators or incubators will have a list of lawyers they’ve worked with and can recommend. Law firms are often networked too, and one lawyer may be able to refer you to another specialized in a different area.
Consider Cost and Payment Structure
Lawyers can be expensive, so it’s important to understand their payment structure and pick the most suitable type. Will you be billed by the hour? Are there prepayment options or flat rates for specific services?
Also, consider whether you’d benefit from having a lawyer on retainer. This means they’ll provide ongoing legal advice and documents as needed in exchange for a monthly or yearly fee. It’s often the most cost-effective solution if you anticipate needing legal services regularly.
Finally, don’t be afraid to shop around and compare prices among different lawyers.
When you’re looking for a lawyer to work with your startup, it pays to do your research. Prioritize specialization, consider cost and payment structures, and look for connections that can lead you to the best possible attorney. With the right lawyer on board, you can rest assured that your company will remain compliant and protected.
