The last thing we want to think about are legal issues — until we have a problem! Then what?

Managing a successful agency today means more than just being a great salesperson. We must be well-rounded business men and women that deal with many issues on a daily basis. One of the most important is managing risk, or to put it a better way, limiting risk.

Legal issues, particularly the ones that are negative, can conjure up unfavorable thoughts, which may lead to procrastination. Hoping that if we wait long enough, maybe the problem will go away is, I believe, a trait of human nature, and, like it or not, we all tend to be guilty of it from time to time. The result, being reactive rather than proactive, may or may not have positive results.

So when does the question, “Are you lawyered up” make sense?”

For me, as I look over my forty-year career and apply the usual hind-sight psychology, the one issue that jumps out is the fact that early in my career, I established a working relationship with a good attorney.

Having a “working relationship” with a trusted attorney is different than engaging an attorney once a lawsuit has been commenced or the terms under the contract have been breached. While legal representation is required at these times, often the more valuable advice was the advice I received in advance of such events.

Some of the advantages gained by consulting with an attorney regarding contract issues include:

• Help understanding the provisions of the agreement.
• Assistance in preparing language that both protects important issues and is reasonable under the circumstances.
• Similarly, after the contract has been signed and the representative feels that the principal is failing to perform its obligation, your attorney can advise as to the best course of action.
• Or if the principal is signaling that you (the representative) is not performing obligations under the contract, again, your attorney can advise you.

Discussing these issues with your attorney in advance of a default notice or lawsuit can help you evaluate your options.

Having a good working relationship with an attorney is more than just an early consultation on business issues. It also establishes an ongoing relationship and fosters an understanding of your business, as well as helping you make better business decisions. As an example, you may be tempted to sign a contract even if it has an unfavorable legal clause because you believe the profit potential exceeds the risk. Ultimately, it may not be a wise decision, and by having an attorney review the contract, you may stave off future legal problems.

Another legal matter that is often overlooked or put off until the last minute is estate and succession planning. Again, having an established relationship with an attorney insures that it is done in a timely manner.

When we think about having an attorney, it is tempting to let cost cloud our judgment, but in reality, like your accountant or banker, lawyers are our partners in business. I can attest to the fact that the relationship with our law firm has served us extremely well over our forty years in business.

It still holds true today as Ben Franklin wrote in 1736, “An once of prevention is worth a pound of cure.”