5 Ways Entrepreneurs Should Use an Attorney: Lessons from 20 years of service

Opportunity is everywhere. 

And there isn’t a part of the world that would not benefit from innovative thinking.

That’s why we need entrepreneurs.

But entrepreneurs also need people as well. They need customers. They need teammates. And yes, sometimes they need lawyers.

Some may think that the world would be better off without lawyers. And I wouldn’t necessarily disagree. But after over 20 years of serving entrepreneurs, I’ve noticed that many entrepreneurs don’t know how to effectively use a lawyer.

There’s a great Robert Frost quote that addresses the importance of a good lawyer: 

“A jury consists of twelve persons chosen to decide who has the better lawyer.”

But having a good lawyer isn’t enough. Just like having the best tool will never actually build anything. You have to use the tool for it to be effective.

My constant advice to entrepreneurs is the same. Your main job is to build the team. Then let the team build the business.

Entrepreneurs need a team. And a lawyer is always part of that team. The business landscape is built by people who use the law as guideposts. That’s why the law is involved in every aspect of business. Entrepreneurs need legal guidance. And not knowing the law is rarely a defense to breaking it. Even if you don’t like lawyers, you’ll need one.

So here are five ways that an entrepreneur can use an attorney — from someone who has hired attorneys and also served entrepreneurs for over 20 years.

1. Sign Nothing

One of the first ways to use an attorney is to not sign any document unless your attorney reviews it first. This might seem like overkill. And in some cases, it is.

But sometimes entrepreneurs don’t even read an agreement at all — not to mention having an attorney review it. In my experience, entrepreneurs are so eager to keep a deal moving that they skip over anything that adds friction or delay to the process. Sometimes, it works out fine. Other times, it causes issues that may not be able to be fixed later.

The goal isn’t to have an attorney review everything. The goal is for the entrepreneur to understand what’s in the agreement, and what’s not. It’s helpful to have someone that you trust to do a quick check before signing. Prevention is always cheaper than remediation.

2. Proactive Planning

Entrepreneurs often live moment to moment without much planning ahead. Circumstances change so quickly that often we can’t plan at all.

But when you do want to plan proactively, an attorney is one of the advisors that can really help. Entrepreneurs can plan ahead to limit liability or pay less in taxes. 

There’s risk planning and assessment. Sometimes there are risks or opportunities associated with a strategy that an attorney can help identity.

There are plenty of opportunities for planning — a few years ago I spoke with an entrepreneur for five minutes and helped save around $10,000 per year in taxes. One conversation made an immense difference. I have countless examples of others.

If you don’t ask, you’ll never know — until it’s too late, that is.

3. Negotiation

The more I serve clients as a lawyer, the more it seems that my job is to negotiate in some way. One of the benefits of using a lawyer in negotiations is to shift responsibility to your lawyer for positions that you believe are reasonable but don’t want to fall on your shoulders.

That’s right: when you don’t want to take full responsibility for a position, blame your lawyer. Ideally, tell them first, but either way, you can shift the blame to your lawyer.

Not all lawyers are skilled in negotiation, though. And it’s certainly worth mentioning that sometimes you need multiple lawyers based on the subject area. For example, the best tax attorney may not be the best negotiator, and a startup attorney may not be the person to ask for divorce questions.

Regardless, use your advisors in negotiation. Use them well.

4. Someone Else Should Have the Hard Conversations, So You Can Do the Fun Part

It’s hard to negotiate and then have a good relationship afterwards.

In many of the entertainment deals that I work on, the back and forth can get tense. Negotiations get serious very quickly. There can be threats of not showing up or delaying productions. If the producer and the talent had to negotiate and then work together, the working relationship would be strained — in short, no one would ever get along during production!

That’s why it’s helpful to distance yourself from the hard conversations. You get to let someone else do that. All of the frustration and anxiety of a hard negotiation is isolated from the artist, entrepreneur, or creative.

Take advantage of lawyers — let them do the hard parts so you can do the fun parts.

5. The Best Teacher

Even though most people seek out an attorney only when a specific need arises, the best attorney relationships are just that — a relationship. For me, an ideal client is someone that I can help for the next 20 years rather than someone I’ll just help this week.

I’d rather teach someone what I know and share my experience, while also simultaneously learning about the individual and the business. The best relationship is one where each side learns and grows together — a level of trust is established that creates real value.

The best teacher is one that continually shares new information and perspectives — and that can only happen through a long-term relationship. That’s what I strive for whenever someone asks for my help. It doesn’t always happen, but for me, the goal is to build the relationship rather than to provide help for a few minutes or hours.

We Need Good Advice

Attorneys won’t know everything. And using an attorney won’t prevent every bad thing that can happen to you. But a good one will learn with you.

I practice law, but I’ve hired more attorneys than almost everyone else I know. Yes, I have my own attorneys. Why? Because I need good advice. Just like most entrepreneurs.