How to Choose an Attorney for a Small Business
Not all attorneys do business law, and not all business attorneys represent small businesses well. Small businesses are not just large businesses with a few zeros lopped off the end of their balance sheet. Small businesses have unique issues and problems.
But before we go any further, just what IS a small business? The Small Business Administration has a 42 page booklet on what constitutes a "small business" for their purposes. Most of my clients are tiny businesses by SBA standards. About 90% have under 50 employees, but probably 50% top out over the gross receipts limits set by the SBA.
To me what's significant about a small business is the control - is it in the hands of one or no more than about 3 people who actually know everything that's going on without having to read reports from underlings? Is it centralized, or are there departments and divisions which are somewhat autonomous? Is it competiting by being quick and nimble? To me a small business isn't about size so much as mind-set.
So if you're a small business - how do you find an attorney. First, look for business law specialists. I just found a single attorney who specializes in:
Family Law & Divorce, Child Custody & Visitation, Alimony & Post-Separation Support, Commercial Litigation, Contract Disputes, Business Matters, Construction Law, Criminal Law & Traffic Offenses, Drunk Driving (DUI/DWI), and Lemon Law.
I don't think so.
Next, find out who is going to be YOUR attorney on a daily basis. In large law firms, small businesses usually are assigned to associates. As associates move up the food chain, they are relieved of having to represent the smaller businesses and are rewarded by being able to work with the bigger clients. So you get a new associate.
Another issue with large firms is that those associates have to bill out 2080 hours a year, that's 8 hours a work day, for 52 weeks a year. Giving an allowance for days off, that means more than 8 hours a day... billable, which means that they tend to over lawyer what they do.
A contract won't protect you well if the other side won't sign it. Sure everyone wants an "iron clad" contract. But honest, you'll lose bids if your contract looks too onerous. Part of the "art" of contract writing is to balance the contract's role as a protective device and as a marketing device. You can't close the deal if your contract runs people off.
In my experience, associates at large firms know their law well, and have the large firms contracts (from large companies) at their disposal, but they are clueless about the realities of your business.
So look for attorneys with small business mind-set and small business experience.
