Why Your Start-Up Needs A Lawyer On Your Team

GC / In-house Counsel / Chief Legal Officer – whichever term you use, having legal counsel come on board in a start-up company can prove extremely advantageous for several reasons.

Many start-ups may not hire legal counsel due to financial constraints, because they want to prioritise their spend and they don't always appreciate the value legal counsel can bring to their business. This is particularly true for start-ups because founders may be less experienced, and most people will only hire a lawyer to get them out of hot water, not to prevent them from getting into hot water in the first place.

Let's take a look at some of the key benefits of hiring legal counsel:-

1. Compliance: Legal counsel can help your company navigate the often complex legal and regulatory landscape and ensure compliance with relevant laws and regulations, such as data protection laws. Legislation is constantly evolving, and if you don't stay on top of it, you could quite easily fall foul of the law - which can result in hefty penalties and reputational damage - for an example of this, just take a look at the fines imposed on Meta recently.

2. Intellectual Property Rights (IP): A legal professional can help the company protect its IP, such as trademarks, patents, and copyrights, which can be crucial for a tech start-up. Disputes often arise over IP rights and IP registration and protection is an integral part of the job for in-house legal counsel.

3. Contract Review and Negotiation: Contracts are the lifeblood of any business and your business will require regular contract reviews and negotiations. Legal counsel can review and negotiate contracts, such as service agreements, non-disclosure agreements, employment contracts, consultancy agreements, and terms of service, to ensure that the company's interests are fully protected.

4. Risk Management: Legal counsel can help the company identify and mitigate legal risks, such as potential liability issues, whether it relates to health and safety of your employees, or any defects in the products you distribute.

5. Fundraising and Investment: Legal counsel can help a start-up with fundraising and investment matters, such as preparing term sheets, investor agreements and securities laws compliance.

6. Mergers and Acquisitions: Legal counsel can advise on business and strategic decisions, and guide the start-up on mergers and acquisition matters, such as due diligence, negotiation, and drafting of legal agreements.

By proactively addressing legal issues and identifying potential risks, legal counsel can add real value to the company by avoiding time-consuming and costly disputes.

For start-ups, hiring a lawyer doesn't have to break the bank. If you can't commit to employing counsel on a full-time basis, you can always find a freelance consultant lawyer. Consultant lawyers are independent and flexible, therefore they can provide you with an affordable package that fits with your business and your budget. When looking for the right legal counsel, you should ensure they have a broad skillset, including strong contract drafting and negotiation skills, and they should understand your business' objectives, so that they can help you achieve your goals.

If you're still unsure of the value a lawyer could bring to your company, then you could always try a consultant lawyer on a short-term contract basis. Throw everything you have at them, invite them to your offices, and let them meet your team. Let them attend meetings so they can understand your business, and then watch them work their magic as they start to introduce efficiencies, update your existing contracts and internal policies, and provide invaluable strategic advice.