As a practicing civil lawyer for fourteen plus years (hwgreen.com) I have seen many businesses that come for help after a problem with a business plan, partner(s) vendor contracts not properly formed and of course then unable to withstand a court challenge is all very avoidable if the start-up had a lawyer on retainer even part-time. Start-up ventures are often starved for capitol and that means using tunnel vision when it comes to forecasting avoidable and yes moveable obstacles that only draw off that precious capitol unnecessarily. Lawyers can get paid in stock options and not even need to use working capital. But unfortunately the working 80 hours a week sleeping on the hardwood floors amidst boxes and empty Top Ramen containers start-up founders simply believe that anything can be executed off of a Google search. That is a mistake to believe that. Even if a start-up is successful in gathering cloud funding or even an investment from Kleiner-Perkins-the climb to success is still as uphill and winding as a San Francisco Tourist Map.
Whether a start –up has investor own private funding, outside funding or a combination of both there needs to be an honest, ethical, communitive legal advocate with years of experience helping businesses on board. That old saying :” a penny wise is a pound foolish” is true. In the beginning anything thing seems doable, but it quickly proves it to be a Games of Thrones battle conflict. Large firms require large retainers, but using a smaller lawyer who can be retained on a task basis is a smart plan. Remember entrepreneurs if the company rapidly expands the lawyer can always hire help and it would be better to let the lawyer hire the help than do it through an on line resume search. The lawyer already familiar with the company is best to hire help that they will be working closely with and that means keeping the business growing and “out of the courts”.