Legal advice to stop and think about - why a legal expert can help your business stand out

Richard Wilkey, partner at Harrison Clark solicitors, experts in business and corporate law services, shares his experience of working with entrepreneurs and how an experienced legal advisor can help your business stand out to potential financial investors.

"I recently attended a meeting with an entrepreneur - he was fantastically passionate about the business he had built up, initially spending three years in his bedroom developing the right software that formed the platform of his company. He knew every detail about the product and the technicalities of how it operated, he saw that he had 'got it right' and money, in fact profit, was starting to flow in. As he talked, I couldn't keep up with his ideas of where the business was going next as one idea flowed into the next.

"Having met and worked with many other entrepreneurs with some superb services and products, it's not difficult to see how they become so absorbed in what they are doing. However, in many cases, specifically at the critical stages, what is also required is some guidance from professional advisors who understand the process they are going through and the bumpy road ahead. But if you are profitable, surely that means you are doing things right, so why should such advice be required?

"I was introduced to this particular chap via a mutual business contact to offer guidance on his next steps. The business is cash rich and moving forward rapidly, with the main shareholder considering further finance for growth. During our meeting we talked through the need for a business plan to allow him to assess the achievements of the business and to focus on the objectives to help make the business more efficient in the future. Something that will become invaluable should he want to raise further finance. We also talked about the ownership of the business and what would happen if one of the management team left. We also discussed: Whether there was a need for a shareholders agreement or to protect the equity given the growing profitability? Did the business need elements of its product and service protected, such as intellectual property rights? Did employees have sufficient terms and conditions of employment to protect the business? And, how would employees be incentivised to grow the company?

"The purpose of this story is to demonstrate that in the fast moving world of the entrepreneur, taking a step back and considering wider issues with the guidance of professional advice can assist in achieving the entrepreneur's objectives. This doesn't mean that person will interfere in the business, but they will help formulate ideas into documents or presentations, that other external professionals and intermediaries are familiar with, to help demonstrate just how good the business is and the potential it has. Likewise, showing that the directors running a new or young business have considered the legal implications of what they do and run a 'clean' business in this regard reflects well on them and the company when third parties start to look at working with them.

"The Harrison Clark corporate team consists of twelve people, four of whom are partners, and has offices in Worcester and Cheltenham. The team has a wealth of experience ranging from handling multi-million pound, cross-border transactions, to acting for high net worth individuals, start-up companies and individual entrepreneurs. With the main office outside the larger cities it means that the cost base of the firm is kept to a minimum, which can therefore be reflected in lower charge out rates that appeal to start up businesses and larger companies alike, without the quality and experience being compromised.

"Given the size of the corporate team, the appropriate resource is also available to handle all types of transaction. As a firm, the culture of Harrison Clark is very much one of capitalising on opportunities, being pro-active and being entrepreneurial.

"Harrison Clark is a full service law firm, Lexcel and IIP accredited and is also part of the MSI Global Alliance (an alliance of 250 vetted law firms and accountants), meaning that advice can be given to businesses with an international requirement - or indeed those entrepreneurs with a cross border flair.

"Those in the corporate team also have strong relationships with accountants and corporate finance advisors who can assist in preparing business plans and forecasts, carrying out financial health checks and help advise on strategy going forward. It is these relationships, and those that can be built with the entrepreneurial/start-up companies, that are so important in helping with their ultimate success.

"For the aforementioned business, the few minutes I was able to turn his attention from the business in hand to the legal and financial processes that could help secure financial backing, I am very grateful - and ultimately I think so was he."

Harrison Clark provides a complete spectrum of City-quality legal services to business and private clients across the region. As well as joining the MSI Global Alliance in 2007 - one of the world's leading international legal and accountancy networks - in 2009 the firm was again recognised for the national quality of its work through its listing in the prestigious Legal 500 and Chamber and Partners lists of the major firms in England and Wales.