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How to Really Cost Yourself Big Money Later

April 28, 2017 // R. Shawn McBride // No Comments »

R. Shawn McBride recently spoke about how cutting corners may cost you more in the long run. Here is the transcript: https://www.facebook.com/rshawnmcbridepublic/videos/1474133989285169/

Hey, everyone, R. Shawn McBride with you here, live. I’m talking about how to really cost yourself more money later. What I’m talking about is ways that businesses think they’re saving money up front that end up costing a lot of money later.

Specifically, I’m talking about those quick-start people that are out there, jumping out there, giving you internet forms to do stuff. It just happened again today. I got a new client that came into the law firm, and they had been working with them and using the internet forms. They formed their company with very generic forms talking about how they are formed, that they’re going to comply with state law, very broad statements.

But here’s the issue. Now this company is getting ready to do some structuring in advance of some possible transactions. We had to even move some things around. Well, when we use more advanced forms, (ones that you might get from a lawyer that’s been in the business world for a while), it will have provisions in there dealing with these likely scenarios that are going to happen. It will contemplate that your business is going to evolve.

A lot of times the internet forms that you see don’t contemplate that the business will evolve. All they do is state where things are then. They get you through the minimum. A lot of times these things don’t have liability protections that they should. A lot of times they don’t contemplate common transactions that will happen. A lot of times they don’t walk you through the process of how to get the company properly formed to protect your liability.

In this particular case, this internet form did not take into account the fact that transactions happen in the future and that things need authorization, so now we need to build a lot of documentation around this to get the proper authorization and get the company through the next transaction. Fortunately this internet form, that the client used, is not going to block them from doing the transaction. However, it’s going to greatly increase their cost. It probably would have been cheaper for them to write the correct form from the beginning, get the right advice, and  they’d be in a much better spot right now and things would go a lot smoother.

I want to tell you, think long and hard. Think about the overall cost. Lawyers are expensive; I understand it. It costs money to get good counsel, and the good lawyers cost more, right? If you’re getting somebody that’s doing stuff really inexpensively you have to understand why. They’re probably inexperienced, maybe doesn’t understand some of the issues, right? There’s a reason why there’s not a cost to value situation there.

To get it done correctly from the beginning is going to save you a lot of time and energy later, and good business people need that time and energy for their business. I’m here to help. I’m not saying I should be your lawyer, just telling you to think in advance, get the right help, get the right people on your team. Get some people you like and trust working with you and then build things correctly. This applies both from the business strategy side in the McBride for Business or my R. Shawn McBride Law Firm business.

I much prefer when people need me to the level that they need my help for legal matters that are very important that they’ve got the right foundation laid. It saves a lot of costs. I certainly would prefer to spend my time on the future and on the big stuff and the big money rather than re-inventing the wheel or fixing the foundation. Unfortunately, sometimes my clients have things that could have been done better the first time around.

I’m trying to save you these problems, get ahead of these things. If I can help you or your organization become familiar with these issues, let us know. Send your Q&A in. We’d love to help. Of course you know how to find me at my website, so reach out if I can help you or someone else in the future. I’ll talk to you soon. R. Shawn McBride signing off.

Make sure you download our free checklist to assess your business:  www.mcbrideforbusiness.com/BlogGift

This posting is intended to be a tool to familiarize readers with some of the issues discussed herein.  This is not meant to be a comprehensive discussion and additional details should be discussed with your attorneys, accountants, consultants, bankers and other business planners who can provide advice for your circumstances. Each case is unique.  Past results do not guarantee future outcomes. This article should not be treated as legal advice to any person or entity. Freeimages.com/photographer Mike Johnson.

 

About the Author

R. Shawn McBride is the Chief Innovation Officer at McBride For Business, LLC. His signature keynote, The 3 Laws of Empowerment (www.rshawnmcbridelive.com/3laws), gives audiences an entertaining look at how they can prepare, plan and protect themselves. You can reach R. Shawn McBride at info@mcbrideforbusiness.com or (214) 418-0258.

 

Check us out on the web at www.mcbrideforbusiness.com, www.rshawnmcbridelive.com/3laws

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Posted In: Business, Legal, Management, Risk



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