3 Reasons Why
All businesses know how important it is to have access to good legal advice when running their own business. However, people are still put off sourcing a lawyer because of the high costs that come with this professional service. The challenge is that by avoiding legal advice they are potentially endangering their business and limiting their opportunities. According to the Legal Services Board, the total annual losses to small businesses arising from legal problems are estimated at £40bn!
Legal services can be complicated and the total cost for a business often depends on the details of an individual case and the type of service provided, as well as unforeseen developments. The traditional way in which lawyers charge for their services is through an hourly rate. More recently there has been an increase in demand for fixed fee legal services, which allows business owners to be in control of their legal expenses while also ensuring their business is protected. Here are three main benefits of using fixed fee legal services:
The fixed fee model will provide you with certainty over cost. Knowing what the matter will cost at the outset ensures predictability, allowing for better budgeting and more time and resources to concentrate on your core business priorities.
2. Cost effectiveness
The billing process can have a significant impact on a client’s satisfaction with their legal services. Fixed fee legal services can sometimes be lower than traditionally billed hours, something that is particularly relevant for small businesses and start-ups. In addition, engaging a lawyer on a fixed fee basis means that you won’t face any surprises as to how much you are ultimately charged.
Small businesse can be worried about the traditional billable hour model. A fixed rate ensures that delivering a particular service is the sole incentive for the lawyer and high quality of work is at the core of the relationship.
If you’re a newly set up or growing business, we expect you’ll need commercial legal advice, such as drawing up terms and conditions, employment contracts and protecting your intellectual property.
Start-ups and SMEs can be hesitant to instruct lawyers and often attempt to deal with any issues themselves, only going to see a solicitor when they have a problem.
Engaging a lawyer on a fixed fee basis from the outset will help you to prevent any challenges and avoid future risk, allowing you to focus on your business and save costs.
Our team at 2020 Business Law work with startups and growing companies to make sure their business interests are protected.