You have probably heard me, time in and time out, talk about the lawyer's toolbox. Advocacy is just one of the tools available to a lawyer. There are so many more, and they range in popularity; transnational, commercial, advisory, karaoke - it is all a part of our service offering (except maybe karaoke).
Today I want to encourage you to take out and dust off your business advisory hat.
Lawyers should engage with their SME clients more often and do so in ways that truly assist the client in mitigating business and legal risk. There is now an expectation from clients that advice they get from their lawyer is more holistic and relevant to their overall business needs. This comes at a time where the client is doing more DIY and so that expectation is also an identifiable need.
We are seeing clients project managing their legal matters in-house. They are not engaging consultants to do work, but are educating themselves and using technology to limit the scope of the things they pay for. The downside of this is that sometimes there is very little holistic overview, and as their trusted advisor, it is the lawyer who ought to insist on a big picture discussion from time to time. That discussion should be about knowledge transfer and co-operation. We should appreciate which clients want to do things in-house and equip them with the relevant skills to recognise when one of the tools in the tool box needs to come out. To recognise when a lawyer ought to be retained for drafting, for product discussions, or for a great game of golf (this is not to suggest you should play golf with your lawyer).
Shopping bags. Copyright Forty Four Degrees Pty Ltd.
Which puts us really at the back of the start of this article, what should you, as a lawyer, offer your client? A chat.
Things to check up on:
- business structures (are there enough structures in place, are they trading as a trustee and in the company/individual's own capacity, are they mixing assets)
- their tax position (are you up to date with your BAS, when was the last time you have filed your taxes, do you understand what those figures mean, how is your relationship with your accountant, do you rely on their advice)
- asset ownership (what do they think is theirs, that is not)
- debts (who do they owe things to, who owes them money, when will it all explode in their face)
- insurances (do they have any, do they know what they may need)
- technology and cyber security (do they have appropriate systems in place, do they know about relevant government grants to help them set such systems up)
- agreements and arrangements (can we write some of them down)
- investments (do they need to talk to an advisor)
- leases
- personal exposures / director's risk
The conversations will be as individual as the people we deal with. The offering and advice may involve you doing work, but it may also include establishing and suggesting appropriate referrals.
And the next step? That is key. Following up on your advice and seeing how they went. At the end of the day, these relationships are just that. They require a little bit of TLC.
Leila Chalk / Principal Solicitor / 03 9225 5266
