A new report has highlighted the fact that small businesses are leaving legal advice until the last minute, often only consulting a solicitor as a ‘last resort’. The report by the Legal Services Board (LSB) found that almost 50% of respondents strongly agreed or agreed with the statement that they use legal service providers as a last resort to solve business problems.
The research, conducted as a follow up study to one completed on the sector two years ago, goes on to suggest that total losses to small businesses due to legal problems amounts to a staggering £9.79 billion per year. Furthermore, a reported one in five business owners who reported they had encountered a legal issue said these led to health problems.
When setting up a small business, there are a number of issues that are likely to benefit from input from a legal advisor. From getting the initial paperwork in place to establishing terms and conditions, employing staff to chasing business debts, these issues can quickly take up a great deal of time that would be better directed during the early stages of growing a business.
At Farleys, we understand that forking out for legal services can seem like an unnecessary expense to small businesses. However, as is often the case, taking professional advice as a precursor and taking a proactive rather than reactive approach can often be far more cost effective, also saving the stress that comes when a problem has been allowed to escalate.
Our commercial solicitors advise all types of businesses, from start ups to established companies and corporations. To speak to a lawyer about legal requirements for your small business, please contact us.