Apart from the strictly productive or commercial factors, the success of a company depends, and very much so, on its response to the legal problems that arise during its development. Administrative legislation, labor market reforms, taxes are all issues that a businessman needs to be aware of from birth. Then the growth of his business will depend on his adaptation to them.
Large companies have their legal department from which they manage hiring, relations with suppliers and customers, or tax matters, but the business’s size does not exclude such a need, far from it. Business attorney consultation is a fundamental issue for small companies that aspire to be significant in the future. Here are, as a guide, eight reasons why a small or medium-sized business needs a lawyer.
- A family business, a source of problems.
Approximately 85% of Spanish companies are family-owned, and together they account for 70% of the gross domestic product. This may be an inferential statistic in the layman’s eyes. Still, it clearly defines our productive sector, the origin of the companies, and the reality they face daily.
If, as we said before, conflicts between partners mark the life of a business and its success depends on avoiding their presence, imagine for a moment the reality of a small company in which the partners are a married couple, father and children, brothers and sisters, or even brothers and sisters-in-law. Previous conflicts that become present in the business life or business problems that threaten the family relationship; prevention and mediation or arbitration are handy tools to minimize the presence of conflicts or their consequences and effects, and they’re both what is defined in the bylaws, and the permanent legal advice of a lawyer will be the guide, the way to follow. A wrong lawyer will want the conflict to end up in court; a good lawyer will bet on sitting the parties around a table with a mediator to solve it.
- To hire the workers.
With the idea and the structure of the company already defined, it is time to hire to get the labor force that will make possible the company’s activity. This is a fundamental moment since in the definition of relationship and opportunity and quantity lies, to a great extent, the separation between success and failure, the possibility of adapting to market changes, and the financial muscle with which, in the future, one can bet on the growth of the business or survival if the economic situation changes.
Being aware of the rights and obligations that define the relationship between employer and employee, knowing the different types of contracts that labor legislation offers, especially in terms of flexibility and even more so after the latest labor reforms, defining rest periods, payment of benefits, vacations or the possible termination of the contract with the employee are issues for which the advice of a lawyer will be essential to avoid potential conflicts and, above all, to maintain the image of the company, a fundamental issue nowadays. A fair labor contract that clearly defines responsibilities, obligations, rights and duties, benefits, and rest periods, is critical to avoid conflicts or solve them effectively. Business attorney consultation is the best way to achieve this.
- The relationship with suppliers, clients, and administration.
The business’s day today will be marked by the relationship with other companies or with the clients. How the relationship with suppliers is established, the liability for breach of contract, non-payment or late delivery, and even confidentiality agreements are essential to maximize profits and ensure that production, distribution, or sales do not suffer distortions or unwanted delays. Knowing the company’s rights about suppliers and its obligations to customers is essential to operate efficiently and achieve satisfaction for a good service. Understanding the consumer legislation, sales, or production restrictions will avoid unnecessary problems. The business attorney consultation and mediation in case of conflict are fundamental in this field.
Similarly, a good relationship with the administration will be fundamental for the company’s growth, mainly if it works in the service sector. The knowledge of the legislation in bidding or public contracting, the development of projects to obtain government subsidies, and developing a project for its growth is also essential in this field.
Similarly, a good relationship with the administration will be essential for its growth, mainly if it works in the service sector. The knowledge of the legislation on bidding or public procurement, the development of projects to obtain subsidies for the business’s growth, or its internationalization is vital for the company to grow and achieve its goals.