Some business owners only hire attorneys for specific projects, and then move on. But some business owners prefer to work with an attorney for a long period of time, to build a relationship, and have the attorney become a “trusted advisor” within the company. Ultimately, the type of attorney-client relationship will be determined by the client.
When the attorney takes a trusted advisor role within a business entity, they will typically recommend doing a complete business review. By doing a business review the attorney and the client will find out what is working in the business, what is not, identify potential problems that could arise, and help facilitate changes that will help a company grow. Once the business review is complete the business owner or CEO will know how the business is currently doing, where the business is going, and a plan on how to get there. In general, business owners know where they want to be, but need someone to help them facilitate the changes based on the needs. Going through a business review can be incredibly valuable for a business’s growth.
The first step to a business review is to gather as much background information as possible. This will help the attorney get to know the business better and understand how it go to where they are at. Some typical background information would be:
- What is the purpose of the business?
- Who are the company’s clients?
- What is the current financial situation?
- What is the legal structure of the entity?
- What are the roles of owners and/or directors within the entity?
- Who are the employees and are they in the right seats?
Once the general background information is gathered, the attorney will be able to dive into the more complex areas of the business to identify inefficiencies within the entity. The attorney will gather information in the following areas:
Financials: Financial management is crucial to any successful business. Specific areas that will be evaluated are cash flow, lines of credit, working capital, and cost review
Competitor Analysis: Who are the competitors, how are their prices compared to your company’s, and what are you doing better or worse than the competitor?
Business Practices: This area includes an analysis of your products, services, and operational procedures.
Assess Business Goals: Where are you now and where do you want to be? Coming up with new ideas and a time frame to implement a new strategic plan will help you accomplish business goals.
All business owners are encouraged to team up with an experienced business attorney to do a complete business review. By conducting a complete business review you are investing in your company’s future by addressing issues, developing best practices, and implements changes for continued improvements.