One of the most expensive lessons I learned in business was how to manage my relationship with my lawyer. It’s one of the many things that I could have learned from a good mentor - if I wasn’t too timid to go out and find one. So if you’re an entrepreneur and don’t have a mentor - go find one. In the meantime, I hope that these musings on dealing with lawyers will help you accomplish your goals more efficiently and save you a few nickels along the way.

Don’t (always) listen to your lawyer

It is your lawyer’s job to tell you about all of the potential pitfalls of a new deal. Your lawyer is going to point out every way the deal could go sour and suggest that you protect yourself accordingly. This is their job and I think it’s an absolutely necessary part of entering into a contract with another party. Realize that protecting against each and every eventuality will add to the: (1) length of the negotiations and (2) complexity of the contract. From my experience, if you don’t choose to pick your battles, negotiations become strained and the cost of drafting the contract skyrockets. Seek advice about all of the potential pitfalls and then choose which ones you really want to fight for.

The clock is running

Lawyers make their living by tracking something called billable hours. That means every interaction with the client is billed. If you just want an opinion about some non-legal facet of your deal - seek out the advice of friends and colleagues first. Your network should be able to give you some guidance when it comes to how to solve non-legal issues. As mentioned above, a mentor is another perfect place to turn. Treat your lawyer as a specialist - not as a sounding board. Remember that you’ll pay for literally every minute of their time.

When you’ve decided to enter a contract with another party, I would suggest that you come up with a detailed agreement in principle before you get the lawyers involved. Then employ your lawyer to codify your intentions in legal speak. A lawyer is absolutely necessary - but only involve them when you and the other party understand exactly what you want to accomplish.

If the negotiations are becoming overly messy with a lot of back and forth, another tactic may be useful. Get the two parties in the same room with their lawyers. A 2 hour meeting with both lawyers talking will help to efficiently address concerns and could save you a lot of money in the long run.

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Not really that complicated, is it? Yet if someone had just told me these things when I started my business, I would be a good deal richer today.

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