How can I save time and money when working with lawyers?
Takeaway: To maximize the value of your legal spend, treat your lawyer as a strategic partner, not a task-taker; be organized, consolidate your questions, and always ask for a budget before starting a new project.
For an early-stage startup, legal fees are a significant and often intimidating expense. A common founder mistake is to view legal services as a pure cost center to be minimized at all costs, often by avoiding contact with their lawyers. This is a false economy. A great startup lawyer is not a cost; they are a strategic investment who can save you immense amounts of time and money in the long run by helping you avoid costly mistakes.
The key is not to avoid your lawyer, but to work with them efficiently. By being a prepared, organized, and strategic client, you can dramatically increase the value you receive for every dollar you spend on legal fees.
Best Practices for an Efficient Client-Lawyer Relationship
Be Organized: This is the single most effective way to save money. Before you ask your lawyer to review a contract, find the contract. Have all the relevant documents organized and ready in your virtual data room. Do not pay your lawyer's high hourly rate for them to do administrative work like searching through your email for a missing file.
Consolidate Your Questions: Avoid sending your lawyer a constant stream of one-off emails with single, non-urgent questions. This "death by a thousand cuts" approach is inefficient, as it forces the lawyer to constantly switch contexts. Instead, batch your non-urgent questions into a single, organized email at the end of the day or a single weekly check-in call.
Provide the Full Business Context: Never just forward a contract and say, "Please review." Provide the context. What is the business goal of this partnership? What are your key concerns? What is your ideal outcome? The more your lawyer understands the "why" behind your request, the more strategic and valuable their advice will be.
Use the Right Person for the Job: A law firm is a team with different levels of seniority and billing rates (e.g., paralegal, junior associate, senior partner). For routine tasks, ask if the work can be handled by a more junior member of the team at a lower rate. A good senior partner will manage this process for you, ensuring the right work is delegated to the right level.
Be Decisive: Legal fees can quickly spiral when a founder is indecisive and asks the legal team to analyze multiple different scenarios or constantly changes their mind on a deal's terms. Do your strategic thinking before you engage the lawyers to paper the deal.
Your relationship with your law firm is a partnership. By being an organized, strategic, and respectful client, you enable them to be a more efficient and effective partner, which will save you significant time and money in the long run.
Disclaimer: This post is for general informational purposes only and does not constitute legal, tax, or financial advice. Reading or relying on this content does not create an attorney–client relationship. Every startup’s situation is unique, and you should consult qualified legal or tax professionals before making decisions that may affect your business.