Hire an Experienced Attorney

We’ve met and have sat across the table from many lawyers who are deal-killers. Overzealous and often inexperienced, they focus on the wrong issues and forget that their client needs the deal to move forward. When you talk with lawyers you’re considering hiring, ask them about one or two complicated negotiations and how they were able to overcome obstacles.

Don’t make price your main criteria for hiring a lawyer. Often, the least expensive lawyers are also less experienced – especially in the areas where you may need help. Paying a cheaper hourly rate might feel good initially, but at the end, you may end up paying far more than if you hired an experienced (more expensive) lawyer in the first place.

Also – be clear about your budget and expectations. Your lawyer should understand that your budget is limited and that they should not waste that budget on irrelevant details.

Most business owners are frustrated when they finally start receiving bills from their legal counsel. Often, the bills include unexpected costs – something you thought would cost $250 ends up costing you $2,500. That’s quite a difference to a small business or a young startup.

Ask for fixed fees, especially if you’’re asking your lawyer to draft specific documents. For example, if you need a standard employment agreement, ask the lawyer for a fixed fee to draft and negotiate the agreement, so that you don’t have to worry about how much you’ll end up paying for that agreement.

Also, be clear about the scope of work you need from your lawyer. If you need a simple employment agreement or option plan, explain exactly what you need and be clear about the business terms that must be included in that agreement.

Finally, don’t ask your lawyers to do things you can easily do yourself. If you need to fill out some forms – fill out the forms and send the completed forms to your lawyer to review and file.

If you’re a small business or startup, hire a local lawyer or firm that typically works with small business and startups. Bigger, more experienced firms might seem attractive options, but if they’re not used to working with small clients, you’ll run into many issues (communication, high billing, responsiveness, etc.). Talk to some current and former clients that are small businesses and startups and be sure those clients are happy and comfortable working with the lawyer you’re considering hiring.

Remember that you’ll generally find more added value when working with local lawyers, as opposed to lawyers located across the country. A local lawyer will have local connections that will help you with funding, can make introductions to other business that can help you and will invite you to local events where you can meet their other clients and network.

Many mid-size and larger law-firms have associates do the bulk of the work for clients. This can be a problem because younger associates might be inexperienced and it might take them substantially more time than it would take an experienced lawyer to solve a particular problem for you.

Clarify in advance whether the lawyer you’re hiring or someone else in their firm will be working on your matter. Worry less about the lawyer’s hourly fee and more about their experience. Experienced lawyers charge higher hourly fees but can solve your problems much more quickly and for less money – than less experienced lawyers.