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Some of the largest corporations in the world have a legal department dedicated to providing legal guidance to the many different aspects of the company’s business – manufacturing, human resources, accounting, regulatory compliance, etc. Companies such as Chevron, BP, Inc., IBM, and the like. Why? Because it is easier to control costs, proactively respond to legal issues, and mitigate risk of all types. By mitigating risk, businesses mitigate expense and thereby increase the profitability of operations.
As a small business owner, you may be thinking “I am doing just fine. I haven’t been sued or had any other legal issues.” All it takes is one legal problem to seriously affect a small business and its cash flow.
For example, you are a building contractor who performs renovations on residential homes. Further, you sign the contract for the work in the consumers’ home. Does your contract contain all of the statutory language required by state law? If not, you may be unable to collect the balance due on the contract based upon breach of contract. In that case, you are out the balance of the contract price as well as the fees paid to an attorney to bring the suit. Are there other avenues of recovery? Perhaps.
But by organizing and running your business with an eye toward risk mitigation in the first instance, you will save money over the long term – in legal fees and time spent with a lawyer when you could be out obtaining more business.
“In-House Counsel” saves you money by:
- Keeping you advised of changes in the law that affect your business;
- Answering questions about business operations or human resources functions before a costly mistake is made;
- Focusing on the revenue draining tasks for you, such as collecting past due accounts;
- Drafting contracts and other documents to mitigate risk;
- Negotiating resolutions to conflicts before court action is commenced;
- Helping you structure the sale of your business to maximize the purchase price;
- And many other things.