That’s a great question, isn’t it?\u00a0 I’ve overheard and been a part of many conversations that ask just that question.\u00a0 These are business owners who value the advice and counsel of an attorney and don’t think they can afford it.\u00a0 Ideally, they would like to have an attorney on staff, whether as official “in-house counsel,” or as senior executive\u00a0 where he or she can help with company operations and also keep a handle on the business’s day-to-day legal needs.\u00a0 The cost to have in-house counsel is prohibitive for many . . . especially small businesses.\u00a0 Better yet, what about the “micro business?”\u00a0 Those with annual revenues from a few hundred thousand up to a few million (as defined by the government).\u00a0 Having such advice at their fingertips is surely out of reach.\u00a0 Or is it?<\/p>\n
Well, if there is one thing I’ve learned, it is that being “small” or “micro” does not mean that the business is unsuccessful, easy to run, or without risks.\u00a0 As a matter of fact, these businesses are the ones that most need\u00a0 legal advice and are the least likely to get it.\u00a0 In many cases, because the cost is too high as it relates to their revenues and other expenses.\u00a0 This post<\/a>, albeit slightly dated, is a great example of a new model for providing legal services to businesses.<\/p>\n After you read that, you are probably thinking, “oh, sure, there are five firms listed that provide that kind of service (although I’m sure there are more), and even so, it still seems geared toward a larger business than mine.”\u00a0 I hear you.\u00a0 Literally, I have heard that comment before.\u00a0 And it is my goal to solve that quandary for many micro- and small-businesses.\u00a0 My two passions in\u00a0 the law are business planning\/counsel and estate planning.\u00a0 I really don’t seek out other practice areas because I know that I will provide the best service and product to my clients if I concentrate on my passion.\u00a0 But the model I learned in law school and through the guidance of excellent mentors is broke . . . at least in my opinion.\u00a0 I was taught two different billing models for having an ongoing “relationship” with business clients: (1) straight hourly billing, and (2) retainer\/hourly billing.\u00a0 The first is the traditional method to which everyone is accustom: you multiply your hourly rate by how many hours you worked for a client in a given month and that is the bill.\u00a0 The second involves a monthly retainer (flat amount) that “buys” you a certain number of hours.\u00a0 The latter is a way to exchange a fixed monthly rate (helps the law firm with cash flow) for a lower hourly rate (benefits the client), typically.\u00a0 Anything over that is charged at the hourly rate (normal or discounted depending on the arrangement).\u00a0 I didn’t like either option because I didn’t feel it allowed me to have the level of relationship with my clients that I wanted to have . . . to be the trusted advisor they turned to no matter what the issue.\u00a0 It actually dis<\/span>couraged my clients from calling me – what kind of a lawyer\/client relationship is that and how does it benefit the client or the lawyer??\u00a0 Good question.<\/p>\n