As a small business owner in Illinois, you're always making strategic decisions to boost your bottom line.
You might be surprised to learn that hiring a small business lawyer is one way to do that. Many view legal services as an expense. But a skilled attorney is an investment in your company's future.
KEY TAKEAWAYS
As a business lawyer in Illinois, I have seen how the right legal advice can supercharge business growth.
Pro tip: if your lawyer can't explain how they'll make your business more money, it's time to look elsewhere.
Every function in a business should contribute to profitability. A lawyer is no exception.
In this post, we'll explore four main reasons why working with a small business attorney can put more cash in your pocket.
A skilled attorney is a valuable asset to your sales efforts. With an attorney on the team, you have a good chance at closing more deals with better terms.
Small business lawyers negotiate everyday.
Let’s say you are making a deal with your customer and you don’t agree. Maybe your customer wants a discount. Maybe they want to pay you in 90 days.
When that happens, your attorney can be a big help in bridging the gap.
They can:
Experienced attorneys are experts at moving deals forward.
If your small business lawyer can't do this effectively, you should consider other options.
Lawyers who dig their heels for no reason are a roadblock to business. They will lose you money.
Every business has a few key factors that drive growth in a big way.
An attorney that understands them can make deals to get the most out of those factors. That will make you more money.
Here are some examples of where an attorney can make a big difference.
Your business has a lot of important numbers that you measure: things like gross revenue, gross profit, and net profit. They are all important metrics. But those numbers don’t tell the whole story.
One of the most important factors is having enough cash to run your day to day operations. In other words, cash flow management.
A good small business attorney gets that. And a lawyer that is part of your team understands the cash needs of YOUR business.
With that information, your lawyer can craft better deals.
Let's say you're making a deal with a customer. Your lawyer can identify the pain points of the customer and make a trade.
Most times both sides don’t care about the same things. So you may give the customer something you care less about in exchange for them paying you faster.
Maybe instead of waiting 60 days to get paid, you could get paid in 30 days.
Sometimes small wins like that can make huge differences in the operation of your business.
And maybe cash flow isn’t your biggest worry. Maybe your concerns are your gross margins.
In that case, your lawyer can make a deal that focuses on the total sales price instead.
The key is this: a good small business lawyer learns what matters most to your business. Then, they help you make deals that maximize those important factors.
Did you know a lot of contracts give the customer the right to hold back payment? Take a look at some of your agreements. You might be surprised.
Many times these parts of a contract are unclear and unreasonable.
Your attorney should make those parts more clear and fair to both sides. A customer should only be able to hold back payment if you did something wrong.
Here's what your lawyer might do:
For many businesses, the sales process is an ongoing negotiation. There’s a delicate balance of give and take.
Small business lawyers are experts at making deals that work for everyone. They help their clients balance short term profitability with long term business relationships.
With an effective small business attorney you can close more deals. And close better deals. That will boost your bottom line.
A lawyer doesn't just help you sell - they also help you buy more efficiently.
Just like with your customers, your attorney can secure you better deals with your vendors.
Things like:
Just like with customers, your attorney can impact gross margins and cash flow. They can negotiate better terms which align with your needs.
If the problem is your gross margins, they can develop a strategy to get discounts. If cash flow is the bigger worry, they can structure deals to delay payment.
Over time, even small improvements in your margins and cash flow cycle can add up to significant increases in profitability and sustainability.
Some costs are not easy to spot at first. For example:
These types of costs may not show up immediately or regularly. But when they do they can have a significant impact on profitability.
Your small business lawyer spots these costs when the deal is made. Saving on large unexpected costs and hidden frictional costs can really add up over time.
Even if you decide to take on some risk, at least you are aware of the cost so you can plan for it.
That way you avoid a surprise down the road.
Time is money, especially for small business owners. Every hour you spend on legal work is an hour you're not growing your business.
When you hand off legal work to your small business lawyer, you free up time to focus on things that make money. For instance:
Let’s say you can make $200 per hour on average if you spend your time generating business.
If you spend just one day per month dealing with legal issues, it costs $1,600 per month. That is almost $20,000 per year.
And those numbers only get worse as your business becomes larger and more sophisticated.
Let’s say now that a few years have passed and you have a sales team in place. Now your time is focused on offering a new product or service to your customers.
When it is launched and operational, you expect the new line to take your business from $1M per year in revenue to $2M per year.
If you expect the rollout of the new line to take one year, that means your time working on that project is worth roughly $540 per hour.
That will cost you $4,320 each day you spend working on legal issues instead of growing your business.
If you spend one day per month over a year, that is $51,840 per year.
The opportunity cost of your time as a small business owner is massive.
You are better off focusing on the activities that make you money. Let your lawyer handle the legal issues that don’t.
Prevention is often cheaper than cure. And it is especially true with the law.
A small business lawyer will help you avoid expensive pitfalls.
Misclassifying employees as independent contractors is a common mistake. And it can be very costly:
Misclassifying an employee can realistically cost you tens of thousands of dollars.
Taking a proactive approach with a small business attorney in your corner can save you a lot.
Employment laws are complex and ever-changing. Your Illinois business attorney keeps you updated on:
Staying compliant will save you money.
You will reduce the likelihood of lawsuits, fines, and damage to your reputation.
Your client lists, proprietary processes, and business strategies are valuable assets. You need to protect them. A small business lawyer might implement:
Protecting your confidential information is not something you want to do on your own. It is more complex and technical than it sounds.
If you get it wrong, the costs could be huge.
Every municipality has its own set of laws. Your small business lawyer can help you understand and comply with local laws like:
Compliance with these local laws prevents fines, penalties, or even forced business closures.
A skilled attorney is more than just a legal advisor - they're a strategic partner in business growth.
They help you boost sales, reduce costs, and avoid costly mistakes. And they free up your time to focus on things that make money.
Ready to take your business to the next level?
Reach out to an Illinois business attorney today. Start leveraging expert legal advice to boost your profitability.
Your future self (and your bank account) will thank you!
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Disclaimer: The information contained in this article has been prepared by Small Business Legal Solutions LLC for general informational purposes only. Nothing in this article is intended to constitute legal advice on any subject matter. The materials in this article are not intended to and do not create an attorney-client relationship. Do not act or refrain to act based on any information contained in this article without first personally consulting with an attorney. Every circumstance is different and must be judged on its own merits.