DEVELOPING LEGAL STRATEGIES IN A BUSINESS WORLD

“I would like to be free of legal dilemmas and litigations”

“Why can’t all these problems just go away?”

These are statements I faced at one time or another during the course of running my own business venture. Fortunately, I was able to find a great legal counsel, who provided me with tons of legal solutions to many problems facing my business.

During the course of running your own business, you will be faced with many of the same dilemmas that affected my own business. You will encounter some aspect of legality when you're faced with the following:

• Contracts
• Accounts receivable
• Taxes
• Employee rights
• Professional liability
• Leases
• Government regulation

The statement below really puts into perspective for why a legal strategy in a business world is so important:

“The ability to incorporate legal planning into the business planning process allows entrepreneurs to strategically plan their operations to minimize risks arising from legal and regulatory regimes and better protect the assets of the business and entrepreneur.”

Source: International Council for Small Business

Legal counsel is not normally incorporated by a small businesses until it’s actually needed. Based on my past experiences, I sought legal services only as needed. Many businesses also face this same dilemma, whether to have legal counsel on retainer or just when a situation occurs.

Can you think of any experiences that required you to seek the help of a legal counsel?

Were you face with the dilemma of paying or dealing with the situation on your own?

The Journal of Small Business Management, said it best with this statement:

“Conventional wisdom suggests that business owners are hesitant to seek legal assistance for business issues. No doubt the conventional wisdom recognizes that the cost of legal services may deter business owners from seeking such services. . . . The business owners responded they are generally more "willing" than"hesitant" to seek legal assistance. This result implies that the conventional wisdom may not be correct and that a misperception may exist as to overall willingness of business owners in rural small town states to seek legal advice.”

Source: International Council for Small Business

I found it interesting the fact that people are not afraid of seeking counsel because of monetary value. Nowadays, people are coming to the realization that the headaches and endless sleepless nights, outweigh the cost of lawyers. I can discuss this topic for endless hours but first lets look at how to develop a legal strategy in a business setting.

STEPS TO DEVELOP A LEGAL STRATEGY IN A BUSINESS

•    Make a list of key areas that will have a legal impact on you business.
•   The following example illustrates a cluster diagram of a legal strategy



(Glowsky, 2013)

• Conduct legal strategy sessions with your lawyer 
• Continually improve products
• Stay ahead of the competition
• Anticipate future legal issues before decisions are made (can help avoid unnecessary litigation.)
• “Maximizing legal dollars”
• Align every business dollar with a specific legal strategy rather than wait for surprises
• “Client Relationships”
• Create strong bonds with your lawyer.
• Puts into perspective, how the law will have an impact on people and the business
• Helps the business achieve goals effectively and efficiently

I'm amazed of how critical a strategic legal plan is to a business. Knowing this information earlier in my life would’ve help me answer so many questions and avoid constant unnecessary litigation.

What does a development of a legal strategy mean to you?

REFERENCES:

Malach, S., Robinson, P., & Radcliffe, T. (2006). Differentiating legal issues by business type. Journal of Small Business Management, 44(4), 563-576. Retrieved from http://search.proquest.com/docview/220959583?accountid=3455

Glowsky, R. P. (2013, 01 27). legal strategy session. Retrieved 02 04, 2014, from Indigo venture: www.indigoventure.com/strategy/legal-strategy-sessions-2013-01-27.pdf