We often help our clients and potential clients debunk common factoids in the entrepreneurial community concerning both legal services and emerging company strategy generally. This section of our website provides some of the more popular myths and the reality.

Myth: “I don’t need to hire a lawyer to draft agreements; I can just use ones I found on the Internet.”

Reality: This is hardly ever a good idea. While the apparent cost savings might be appealing, especially for a fledgling company, a form agreement is just that – a form – meaning that it doesn’t take into account your specific concerns and the protections that you need. What’s more, those failures can end up being a lot more expensive than a properly drafted agreement by your lawyer. The problem is, you will never know how bad the Internet form agreement is until it is too late, because you don’t know what you don’t know.

Myth: “Now that you have completed your Series A (or B or C) round, you need to hire a big law firm.”

Reality: What you really need are lawyers who know what they’re doing and who will devote their time and attention to you. Behind the high-rent office space, big law firms are really just amalgams of small practice groups in specialized areas. Because a big law firm’s profitability depends on volume, its attention span tends to be shorter, less focused and usually, most concerned about their big company clients. You do get one thing with a really really big law firm: really big legal bills.

Myth: “Our law firm can get us financed.”

Reality: Nobody but you can get you financed. The best way to get financed is to design a financing plan and execute it. When you are ready to execute your financing plan, there are numerous sources of help – including us.

Myth: “Our law firm can find us customers and strategic partners.”

Reality: In developing your organizational chart, you should address all of the company’s needs, including marketing and business development. That function must be addressed, either by the effort of the CEO or by filling the required positions. That’s not to say that savvy advisors – including us – won’t make introductions where they can; doing so is a key element of a good professional relationship. But you should not outsource the entire function to an outsider, particularly to your lawyer.