Hiring and Firing Attorneys

Sharon R. Brinks

In his best-selling books, The Millionaire Next Door and The Millionaire Mind, Thomas Stanley writes about the statistical correlation that he had documented between millionaires and their reliance on attorneys and accountants to advise them. Unfortunately entrepreneurs often spend more of their valuable time interviewing to hire an office receptionist than they take to "hire an attorney". They also fail to form a relationship with an attorney until some crisis occurs, rather than when they have time for a careful decision. Consider these things when hiring or firing an attorney.

Expertise: The size of the firm is not important. First-rate business attorneys practice in small offices and in large firms. Make a list of the type of legal issues that the business will face. Do you need an attorney to draft simple contracts, advise on collection issues, employment matters, review equipment or property leases? Ask about experience in your most important legal areas. One hundred dollars of preventive legal advice can save thousands in court fees.

Recommendations: A good place to turn for a recommendation is to another entrepreneur or to an advisor such as the business' C.P.A. Ask for business references.

Communication: An attorney is only as good as your ability to reach them when you need help. If it took four calls for your first appointment, expect more of the same. Is he/she available via e-mail and cell-phone? Will they take the time to visit your business? A good business attorney should be a trusted "counselor", who is there when you need them.

Fees: Fees are important, but the cheapest attorney is not necessarily a good value. They should clearly explain their fee structure and document the basis for each bill. Many small law offices or solo practitioners have a group of specialists they can utilize for "high end" issues such as tax advice, so they can keep their regular hourly fee structure quite reasonable.

Finally, owners fail to fire an attorney who never returns their phone calls or never gets the legal work done on time. A business attorney is a key vendor of a critical service to a small business and should constantly be evaluated for effect on the long-term future bottom line of the business. Ms. Brinks is founder of Brinks & Associates and a City Commissioner for Kentwood.

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