You can avoid hiring an attorney for many business issues. But there are good reasons not to skimp on expertise.
IN THE INTERNET AGE, with Google doing your legal research and LegalZoom your contracts, you may have the illusion that your legal ducks are all in a row. This illusion seduces even those entrepreneurs trying to avoid disputes. “I always operate by what my grandmother said: ‘An ounce of prevention is worth a pound of cure,’” says Matthew W. Richter, who co-owns Agora Auctions, an online coin-auction site. As a CPA, he carefully vets contracts, patrols his inbox, and deals with any potential conflicts immediately. Even so, he has faced problems. “My partner wanted to save money and used an online legal service,” says Richter. “They completed the form saying we had employees in New Jersey. Which we didn’t have.” It took Richter a year of steady phone calls to the state to undo the glitch.
The problem is that you may not know what you need until it’s too late. “Businesses can get pretty far without a lawyer,” says C. Erik Gustafson, who oversees 300 attorneys at the Virginia law office LeClair Ryan. Others assume their lawyer is watching the road. “‘Why do I have to think about this?’ ‘Why do I have to worry about this?’ I hear that all the time,” says Barry Schwimmer, a partner at the Stamford Innovation Center in Connecticut, which advises startups. Schwimmer says too often companies believe that agreeing to work out problems in arbitration, rather than in court, will take care of everything. But, he adds, arbitration won’t save you from aggravation and cost. Says one entrepreneur who’s been through the process: “You still have to prepare your case. And that’s time away from running my business.”
This story is from the February 2016 edition of Inc..
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber ? Sign In
This story is from the February 2016 edition of Inc..
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 8,500+ magazines and newspapers.
Already a subscriber? Sign In
Screen Play
Joe Thomas and his co-founders were two weeks away from running out of money for their software startup when, in 2016, they launched a new product and went all in on prerecorded videos as a workplace communication tool.
THE GUY WHO PUTS COPS IN THE SKY
BLAKE RESNICK, A 24-YEAR-OLD WITH FUNDING FROM SAM ALTMAN AND SAM BANKMAN-FRIED, IS ON A WILD RIDE TO REINVENT THE FUTURE OF EMERGENCY RESPONSE.
AI Gets to Work
It's leading-edge, it's downright scary and it's here. Following AI's breakout year, we take a look under the hood at how entrepreneurs are applying the tech and what you need to know to stay competitive.
THE CRUSADING KOMBUCHA CEO AND 200 YEARS OF STARTUP-DESTROYING LEGAL DOCTRINE
Michael Peter wants to dismantle a longstanding legal precedent that can prevent entrepreneurs from getting their day in court. His not-so-secret weapon: A small-business superhero named Reverend Justice.
ONLY THE STRONG SURVIVE FEMALE FOUNERS 250
SUCCESS often breeds success-but triumphs also arise out of necessity. Consider that Airbnb, Uber, and Rent the Runway started during the Great Recession. In many ways, the past year was defined by similar tumult. While the U.S. never technically entered a recession, the retrenchment in investment and ad spending paired with the psychological-if not direct-toll of tech layoffs yielded tough times indeed. But female founders are nothing if not resilient, and their achievements defied the conditions they faced, giving us cause to expand our list to 250 of them. They're not ranked, but they are organized around themes. In the pages that follow, you'll find snapshots of courage from women who've overcome trials-such as keeping the internet running in war zones, coping with the collapse of Silicon Valley Bank, or facing personal crises. You'll also learn how this year's top female founders grew their collective 2023 revenue to more than $8.86 billion, raised $6.2 billion in funding to date, and kept it together not just to survive, but to thrive.
Shelley Zalis
On that elusive work-life balance, her own version of perfection, and pivoting with positivity.
Steve Young Shares Lessons From the Private Equity Playbook With a First-Time Founder
The athlete-turned-investor helps Tessa Barton prepare to scale her bootstrapped photo-editing startup, Tezza.
AI in HR Tech: A New Era in Human Resources Technology
The next generation of HR software is here, powered by artificial intelligence (AI). Now, your business can harness the transformative power of AI in HR tech.
Think Liberally and Deliberately
Why do I devote four weeks a year to reading and thinking? So I can supercharge all the other days.
At Board Meetings, the CEO Should Get Lost
Directors need to candidly discuss company leadership. They can't do that if the top manager is also the board chair.