Entrepreneur Office Hours: Issue #188
Entrepreneur Office Hours: Issue #188
Thinking about lawyers [shudder...]
I skipped this week’s journey log on Tuesday. Sorry! It was a scheduling issue. Because I was out of town last week, I completely forgot this week was the actual holiday. Plus, the holiday fell on Tuesday, which is when I usually publish, and writing something for nobody to read over the holiday seemed like a waste of time. I plan on resuming my normal publication schedule next week, and I’ve got some interesting updates to share.
Despite the holiday, I still managed to crank out a couple articles. You’ll find them below. Also below, you’ll find my answer to a question about choosing lawyers.
I won’t spoil the answer. I will, however, take a moment to poke fun at startup lawyers. No offense intended to any of you who are startup lawyers, but… well… the term always feels like a a bit of an oxymoron. In my experience, lawyers tend to be some of the most risk-adverse, color-inside-the-lines, always-say-no kind of thinkers in the world. Conversely, startup founders tend to be the opposite. They’re risk-tolerant, better-to-apologize-than-ask-permission, always-say-yes people.
Naturally, when you put a founder with a lawyer, good things rarely happen. At least, that’s been my experience. I’m curious about all of you. Any great lawyers stories out there in startup land? Send them along if you’ve got ‘em.
-Aaron
Your Startup’s Survival Depends on a Little Bit of Magic
And the best startup founders know how to optimize the magic for the sake of their customers and their products.
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Be careful. If you fall for it, the temptation has a surprising way of destroying even the best companies.
Office Hours Q&A
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QUESTION:
Hi Aaron,
Do you have any advice about choosing lawyers? I was put in charge of interviewing lawyers for my startup, and it’s a surprisingly frustrating process because I can’t tell the difference.
What makes a good lawyer? What makes a bad lawyer? And why are they all so expensive?
Any light you could shed on hiring lawyers is very much appreciated.
Thank you,
Mark
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I’m not the best person to answer this question, so I’m going to admit as much up front and suggest you talk with some other people. However, I can offer a few thoughts/guidelines.
If you and I were talking in-person and you asked this question, before giving any specific advice about finding a lawyer, I’d ask why you were asking. If you’re just looking for someone to help you get incorporated, that’s different than if you’ve got an active fundraising round and need help drawing up terms, which is different than if you’re getting sued. That’s because, like with most professions, a “lawyer” isn’t some generic catch-all that can do everything. Lawyers have specialties, and you want to find a lawyer who can do the things you need. In other words, if there’s a specific reason you’re asking for help finding a lawyer, make sure, when you’re searching, you find someone with the right specialty for your situation.
That caveat aside, I’m going to assume you’re asking about the best way to find an all-purpose startup lawyer who can handle the majority of what most startups need. Luckily, the world is full of startup lawyers. Unluckily, like any profession, they exist on a bell-curve. Some are great. Some are terrible. Most are in the middle.
That, of course, brings us to the question: “How do you tell the difference between a good startup lawyer and a bad one?” My main advice is to ask around town. Other startup founders in your area will have surely worked with lawyers, so get feedback. Specifically, for me, I always ask questions that can help me get a sense for how detailed-oriented a lawyer is.
Seriously… detailed-oriented. A good lawyer is an absolute stickler for minor details. If you catch one careless typo in an email, run – don’t walk – the other direction. That might seem extreme, but, remember, this is the person who you’re going to ask to handle some of your company’s most important documents, agreements, and partnerships. If that person can’t be bothered to carefully review an email to a client, you have to wonder what else she’ll be missing.
The other big thing I like in my lawyer is someone who can give good business advice. I don’t mean advice about what feature to launch next. I mean advice about how to handle investors, deal with board members, work through complex HR situations, etc. A good startup lawyer isn’t just someone who understands the law. A good startup lawyer also has a keen sense for business, and that person is going to be able to combine her knowledge of business with her knowledge of the law to help guide you through complex business situations.
Got startup questions of your own? Reply to this email with whatever you want to know, and I’ll do my best to answer!
