Running any kind of SME is hard work and often means that managing and protecting assets against the risk of something going wrong slips down the priority list.
What’s needed is a top down approach: from ensuring that the business generates maximum revenue and costs are controlled, to putting in place safeguards that minimise the likelihood of misunderstandings and/or costly disputes later – there are myriad of matters to manage.
Clients tell us that finding the right person with the right knowledge and experience at the right price is challenging. With legal expertise a given, what are the questions you should be asking about your advisers?
What’s their background?
It’s not about what school they went to or what marks they got. This is about having strong hands-on commercial experience, which will allow them to quickly understand your business and the sector in which it operates. This is critical to ensuring advisers are driving legal solutions that promote business growth rather than obstructing it.
Do they understand the company’s risk profile and operate within those parameters?
Every business needs help to prioritise their risks. The answer is putting in place simple, practical, scalable structures and processes to mitigate critical risks.
That means looking at the bigger picture and having a good understanding of your business plan and its objectives. It also demands that advisers be sensible about what can be done and when, rather than striving for perfection, with its associated price tag.
Do they deliver pragmatic solutions?
Often overlooked and undervalued, commercially astute advice needs to reflect the realities of the business. Good advisers will review the options, suggest alternatives and outline their associated risks and rewards before helping decide on the best approach.
Do they understand the commercial impact of the solutions they recommend?
Despite changes in the legal market the traditional law firm model remains focused on legal specialists. They play an important role, but a piecemeal approach doesn’t always deliver a cohesive solution – more often it puts the law at the heart of the problem, not the needs of the business.
Like any project, legal matters need to be closely managed. It’s about ensuring that business objectives remain the priority and costs do not spiral out of control.
Are you getting value for money?
Whether reality or perception, it’s rare to hear a resounding yes. The last decade has seen changes with some law firms moving away from time recording. For many however the stop-watch approach remains the default setting.
So it’s important to establish at the outset how the relationship with your advisers will work, who will do what, and how it will be charged for. Preventing duplication of effort and wasted cost is key.
Critically, advisers should be guiding the management team in dealing with what matters most to the business. They should be helping to find sensible and practical solutions that can be easily implemented to protect assets.
Where do in-house lawyers sit in the process?
Accustomed to working inside companies, in-house lawyers not only handle all manner of day-to-day legal matters they also generally have a much wider remit, including operating as a translator between specialists and the management team. Adept at buying in specialist knowledge when needs must, managing that process and, vitally, keeping costs under control.
Most importantly, and irrespective of which flavour of adviser you are working with, they should add value to your business. Sometimes we all need a sounding board, someone to share ideas with, chat through a problem or just to discuss the ‘what ifs’ without worrying about the bill.
