No. 2. Not having a relationship with a good lawyer until you need one. After your business is hit with a lawsuit, is not the time to start looking for a good lawyer.

No. 3. Not demanding access to and responsiveness from your lawyer. A good lawyer is responsive. It shouldn’t take your lawyer days to return your phone call.

No. 4. Allowing the lawyer to nickel and dime you to death. A good lawyer should care more about you and your business than charging you for every minute they think about your case (including while lying in bed) or for every photocopy, fax, letter, electronic legal research project, mileage, fed ex, etc.

No. 5. Using lawyers who are not in the information age and lack technology efficiency. A lawyer that is not technology savvy is inefficient. This results in your business having to pay higher legal bills.

No. 6. Using lawyers who lack business sense and who fail to apply cost/benefit analysis. Most lawyers are trained in the law, not business. Pick a lawyer that understands business. As a business person, you will probably relate to them better.

No. 7. Using lawyers who care more about themselves rather than client needs. A law firm should be in business to help their clients stay out of trouble. If they care more about themselves than you, find another one.

No. 8. Working with lawyers who charge by the hour with no incentive to work efficiently and who require a certain amount of billable hours per year. Traditional law firms generally charge by the hour and are very hesitant to provide estimates. Pick a lawyer whose financial interests are tied to yours or at least is willing to help you budget and control your legal expenses. See our article on attorney’s fees.

No. 9. Allowing the “tail to wag the dog.”Don’t ever forget you’re in charge. You control the ultimate decisions concerning legal matters impacting your company. Don’t let the “tail wag the dog.”

No. 10. Not using a lawyer. This could be the biggest mistake of all. In one small business survey, over 65% of small businesses reported they rarely used or did not have a lawyer. But when the average wrongful termination jury verdict can be in excess of seven figures (California average between 1992 and 1996 was $1,123,993), can your business afford not to have an employment and labor legal advisor on its side?

(Reviewed 9-08)