Why your Commercial Lawyer is the most important asset for your business

A commercial lawyer that you highly trust, work closely with and is empowered within your organisation, is key to your business’s success. Why? Well, you  are more likely to keep making leaps, bounds and keeping ahead of the legal game.

Are you a business owner who doesn’t have a commercial lawyer or worse, working with a commercial lawyer who doesn’t have what it takes to protect you nor your business? It’s time to make the change. When the storm comes, you need to be prepared and protected.

The three major benefits you get from having a proficient commercial lawyer on your team are:

  1. Protection
  2. Guidance
  3. Peace of mind

All three are equally important and pivotal for your business’s success.

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When people think of commercial law, some think of the major legal commercial disputes and allegations. They think of when McDonald’s sued Hungry Jack’s over the BigMac trademark dispute. Or we think of the Cambridge Analytica Facebook Privacy Lawsuit. Or any of the high-profile cases we hear about. And yes, these are common. But the majority of commercial disputes and legal cases are not reported or receive much media attention, perhaps because of their relatively smaller magnitude. Or perhaps, they are not relevant or interesting enough to be taken to the public. But make no mistake, there are commercial legal battles happening everyday in the business world and its important to always be prepared and protected.

The cost of not having a commercial lawyer

So, is there a cost of not having a commercial lawyer? Yes, there most certainly is. The biggest misconception people have around commercial lawyers is that they are meant for large enterprises. This couldn’t be further from the truth. One of the most important stages of a business is the start-up phase. This is when the business is most vulnerable, inexperienced and prone to major errors that can cost it everything. The cost of not having a commercial lawyer, whilst not always, can be the entire business. One lawsuit can change everything.

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Whilst wrong business decisions amongst other factors can lead to a business’ downfall, legal risk can be the one. And a commercial lawyers’ duty and responsibility is to eliminate that risk and guide you with legal protection throughout your journey. 

The anatomy of a commercial lawyer. What they do and how can they help you

Commercial lawyers essentially deal with all commercial and business legal matters. They are heavily involved in transactions and documentation but their work on many occasions stems outside of those areas. For example, at Lazarus Legal, our commercial lawyers help our clients in the following areas.

  • Review of agreements
  • Negotiate contractual amendments
  • Commercial agreements
  • Shareholders Agreements
  • Share Subscriptions Agreements
  • Employee Stock Option Plans (ESOP’s)
  • Partnership Agreements
  • Commercial and Retail Leases
  • Buying and selling a business
  • Liquor licensing
  • Bespoke commercial agreements

One area that most if not all businesses need help and protection with is Employment Law and incentivisation for employees, including employment contracts and external contractors agreements. Your human resources are the most important assets in your business. Ensuring that you and your staff are legally protected is vital. At the same time, ensuring you are protected against disputes and litigations by your current or ex-employees is equally important.

Employment law services also involve things like advice for investors, accelerators and incubators, including due diligence reporting, guidance on investing in start-ups.

When you set out to hire a commercial or a business lawyer, there are various expertise and skill set you want to look for.

A great commercial lawyer is someone who is a well-rounded and savvy businessperson. They don’t have to be entrepreneurs or have the entrepreneurial spirit. But they need to be ‘well-rounded’. They should have a solid understanding of how businesses work, the important details of your industry, and they need to be up to date with technology and important trends.

Do you need a commercial law firm or is one commercial lawyer enough?

On a technical level, business lawyers should have a solid understanding of transactions, economic and legal disputes, and ultimatelylitigation amongst other matters. Extensive experience in contract drafting, company mergers and acquisitions, employee agreements andnegotiations is also important to have covered.

You can quickly start to see that there are many areas under commercial law and in many cases, working with multiple specialised lawyers can be pay off. That’s when working with a law firm becomes critical. Having a commercial law firm take care of all your commercial law matters and utilise its lawyers and solicitors can also be very economical rather than just working with one lawyer. 

Duties and Responsibilities of a Commercial Lawyer

Business lawyers who specialise in business or commercial law are responsible for ensuring your business is safeguarded and protected in all of its commercial activities. Part of what they do is assist you throughout your business transactions, deals and arrangements to ensure they are valid and legally binding. Even non-disclosure agreements can be very critical to your business and having the right terms is imperative. Terms and Conditions of your service or products is another area a commercial lawyer should be handling.

Let’s assume you’ve done your homework, due diligence, and created a legal foolproof framework for your business. Sometimes, that’s not enough. You might wake up one day to a call, letter or an email with a dispute against you. This is when the top 1% of lawyers will be there to pull you out of these unfortunate circumstances.

A lawsuit against your business can mean stopping of business activity, or a financial obligation which can be disastrous. The only goal of a commercial lawyer in these situations is to protect your brand and business.

On the flip side, your business can be harmed or in danger due to practices by competitors, contractors or third-party entities. Your commercial lawyer will be at the forefront and the advisor on what legal action to take to ensure you get the best outcomes. 

Four attributes you need in a business lawyer

Transparency

Whilst it seems trivial, transparency is not as common as one might expect. The law is sophisticated as it is, the last thing you want is someone to make your world cloudier. A transparent business lawyer will empower your business and decision-making process by giving you the answers you need and painting an accurate picture every time you reach out to them.

Availability

How long can you afford to wait before you hear from them? More often than not, you will need a fast turnaround and quick answers from your commercial lawyer. To grow, you need to be able to make fast and accurate decisions. When you work with a lawyer that ensures they are available when you need them the most, will be instrumental for your success.

Industry Knowledge

How much do they know about your industry? Are you in construction, real estate, tech, fast-moving consumer goods, retails, tourism, or healthcare? Any industry has its regulations that can be landmines if you are not aware of them. A commercial lawyer with extensive experience in your industry will be a shortcut in many ways.

International Law Experience

If you aspire to operate on a global level or be an international brand, a lawyer with international experience and exposure is a must. But, even if you trade locally and your business does not require much contact with overseas parties, it’s quite important to have that area covered. We’ve all heard and seen how a company overseas files disputes against other business on the other side of the planet. Put that hassle to bed with a commercial lawyer who understands how international laws work when it comes to commerce and trade.

How much do commercial lawyers charge?

In Australia, a typical hourly fee of a business lawyer can range from $150 per hour to $325 per hour and sometimes much more. However, the hourly rate can sometimes be extremely irrelevant as in any other profession. It’s about the effectiveness of the professional providing the service. If someone charges you $150 an hour and bills 20 hours whilst someone else charges $300 and bills 8 hours, from just a cost perspective, you are better off with the higher hourly rate.

How much a business lawyer charges become even more irrelevant when you consider the business impact they can have and the opportunity cost of not having them.

The best way to ascertain whether you should hire a business lawyer or not is by speaking to them and getting the full picture on how they can help you, your level of risk, and how experienced they are and their understanding of your industry. 

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