It's All About The Law™

I’ve been getting some questions about what I mean when I talk about my areas of law practice — Cash Flow, Conflicts and Compliance. And what those areas mean to business owners.

This post will explain the law — Cash Flow, Conflicts and Compliance — as it applies to business owners.

Looking to the Past
When we have an existing legal problem (a problem that arose from past events), we usually call a lawyer to fix it. This type of solution often requires litigation.

If we are the plaintiff (the person doing the suing), litigation is unpleasant. We are spending time, effort and money to fix a problem we wish had never been a problem.

If we are the defendant (the person being sued), litigation is unpleasant. We are spending time, effort and money to respond to a problem we wish had never been a problem.

Business litigation usually falls into three broad categories: Cash Flow, Conflicts and Compliance.

Cash Flow: someone owes us money and we need the money to keep our business alive (we are the plaintiff). Or someone is suing us for money they claim we owe (we are the defendant) but we feel we don’t owe them anything.
Conflicts: someone violated our rights or breached a contract and we want compensation (we are the plaintiff). Or someone is suing us for what they claim we did (we are the defendant) but we feel we aren’t liable.
Compliance: a regulatory or other government agency is interfering with the operation (or existence) of our business and we want them to stop (we are the plaintiff). Or a regulatory or other government agency is suing us for money they claim we owe, or they claim we violated some rule or statute (we are the defendant) but we feel they are wrong.

So litigation is unpleasant for both the plaintiff and the defendant. The only ones who win are the lawyers — they get paid for “fixing” the problem(s).

I’m not saying anything bad about lawyers, the courts or the American legal system. The American legal system is a zero-sum game — there is a winner and a loser. It’s how the system works.

Avoiding the Past and Being Ready for the Future
Since litigation is unpleasant for both the plaintiff and the defendant, why not avoid it before it becomes necessary?

Cash Flow: If we know our Cash Flow needs — the money we need to keep our business alive — we can set our pricing and payment terms. We will know where we are and where we are going (or will be) in the future. Then we will know the terms we need in our contracts. This helps us avoid
Conflicts: If we anticipate and plan for conflicts (among staff, with customers and clients, with vendors and with competitors) we can avoid Conflicts before they arise. We won’t be distracted from the purpose of our business. If we position our business to avoid conflicts, we will stay in
Compliance: Tax codes (federal, state and local) and regulatory agency rules (federal, state and local) are a “necessary evil” for business owners. Staying in compliance is critical to the long-term health (or existence) of any business. When we know the law(s) and rule(s) that apply to our business, we will know how to stay in Compliance. Then we will avoid interference from regulatory or other government agencies.

Litigation looks to the past — it “fixes” things or events that already happened.

When we change how we see our businesses.
When we plan for Cash Flow, Conflicts and Compliance.
When we look to the future.
Then we won’t have to “fix” things or events that happened in the past.

We will be ready for the future.

This is what I mean when I talk about my areas of law practice — Cash Flow, Conflicts and Compliance. And what those areas mean to business owners.

Your Business Lawyer will help you with Cash Flow, Conflicts and Compliance. As you network for your business, take some time and find a Business Lawyer you like and trust.

Do you agree or disagree with what I’m saying?

Please post your comments and opinions on this subject.

Thanks,
Larry