4 Ways to Save Money on Startup Legal Expenses

startup legal expenses

Entrepreneurs are energetic individuals with a free spirit and mind. They don’t lack qualities like hard work or intelligence neither do they lack passion for their business. One thing that most entrepreneurs lack though is money especially in the early days of business. It, therefore, becomes more painful for entrepreneurs that they have to shell out a significant part of their funds on legal expenses even before their business can truly take off.

The average legal costs for a start-up is hard to predict, but some 2013 estimates indicate that, on average, start-up companies were paying a little over $1k per month for the first three years of their business. With lawyers taking out such a huge chunk out of a start-up’s budget, it is important that entrepreneurs start to think of ways they can save their money on these legal expenses.

Related: Trusting Startup Lawyers: Why Do Founders Find It So Hard?

Ways to save money on legal expenses

Do- it-yourself

Most of the legal experts will agree that a start-up doesn’t always need a lawyer to solve puny legal issues. With access to knowledge on the internet, you can always do the necessary research to get a basic idea.

Further, there are several websites that offer DIY documentation and legal help— make use of them. Rather than coughing up bucks to your lawyer, you can use simple clicks of mouse making the process not only cheaper but also more efficient. However, remember not to over-do-it-yourself, have a lawyer to review your documentation.

Related: Why Raising Too Much Money Can Harm Your Startup?

 Outsource it!

If you don’t think you need a full-time lawyer well…. you don’t need to hire one!

A full-time lawyer may require retainership and any lawyer worth his salt can be very expensive. Therefore, it is best to hire a part-time lawyer, lawyers who are in their early years of practice will offer this service. They will give advice and to solve legal problems as and when their clients require them to, and will bill you accordingly.

Even though these lawyers offer limited service, for an entrepreneur it is like having an attorney only when he or she requires it.

Related:7 Principles to Remember While Starting a Business

Why cash? Why now?

Cash is not the only way pay a lawyer. A lot lawyers will happily exchange their services for some equity. However, that would require the lawyer to believe in you idea. Therefore the best way to achieve legal protection as well as not spending much cash is to offer payments in a combination of equity and cash.

Try and find a lawyer who agrees to receive payments in such manner. Also, if you are unable to find such a lawyer find a lawyer who is ready to accept  deferred payments or flat fixed rates that will not only keep your legal budget in check but will  also make the process faster.

Hire your lawyer online

Gone are the days when you had to hire a lawyer simply on the basis of referrals and reputation. Now there are tons of sites that offer lawyers for hiring online. By hiring your lawyer online not only do you pay for what you require but you get a chance to chose a lawyer who can do your job on the most frugal prices available in the market.

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If you have any legal queries or looking for any legal help, please visit us at PocketLawyer.com

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