How a Startup Can Find the Best Startup Lawyer

 

Adding any member to your startup team should be done with extreme caution.

 

I am one of many that believe your startup team is as important as your idea; therefore it is crucial to find people who offer a lot and mesh well.

 

Adding a startup lawyer to your team is a big step for your startup, but it is very important that the lawyer fits well with your company.

 

Here are some steps to find the right startup lawyer for you:

 

As a startup it is important to figure out what you might need a lawyer for right now and in the future. Everything ranging from protecting your idea to negotiating a merger can involve a lawyer therefore it is important to assess where your startup is heading and what legal help you might need.

 

If your startup is in the entertainment industry, it might be efficient to find a lawyer who specializes in both startup and entertainment law. If you yourself do not have a lot of experience with startups it might be wise to hire a lawyer who does so they can offer their expertise when needed.

 

For example, if you do not know what entity to incorporate your startup as, a lawyer who has experience with startups should be able to recommend the best one for you.

 

Startup lawyers are people too, so it is important that you mesh well both personally and professionally. A great fit for one company might be a terrible fit for another, so it is important to do everything you can to ensure a good relationship.

 

Some might want a lawyer who is just there to draw up contracts and agreements while others might want a lawyer who can advise and help the startup develop, it is important to figure out which one you are. While the fit is always hard to judge off of one or two meetings, getting recommendations from others in your industry will be very helpful in determining if the lawyer is right for your startup.

 

Another important factor to look at is your approach to risk. If you are someone who tends to not play it safe it is important to find a lawyer who is good at understanding the possible risks and consequences of your actions.

 

There is no question that lawyers cost money, which is why it is important to get the most out of your money. If you are looking for someone who can handle your early business needs like incorporating, partnership agreements and NDAs, it will be more cost-effective to hire a solo practitioner rather than a lawyer from Sullivan and Cromwell.

 

Whereas, if you are negotiating an investment from a prominent venture capitalist fund, you would want someone who has experience with a situation like that.

 

The method of payment is also important to consider, the standard hourly billing might not be best for you. Other fee structures include fixed fees, variable fees, success fees etc. Fixed fees might be best for you if you have specific projects and tasks for the lawyer to complete.

 

If you have precise goals, a variable or success based fee structure might be the best for you as you would not pay unless those goals are reached. Eventually, as your company grows, it might be in your best interest to have an in-house lawyer to save money.

 

Hiring a lawyer for your startup is an important task and it is immeasurably important to do your due-diligence before making a decision.