We are doing a number of blog posts this week based on the fascinating findings from some in-depth market research carried out earlier this year.
Small businesses make up well over 90% of all businesses in the UK and few, if any, will go through a year, without facing some kind of legal problem, issue or dispute.
2 of the most interesting facts that come out of the very detailed report referred to above are that, whilst there are big fluctuations, the average number of legal problems for small businesses in a year is 9. It seems that many of these problems are resolved without using lawyers at present (however this doesn’t address the issue that whilst a problem may have gone away, it may continue to resurface because the business doesn’t understand the legal reasons it arose and how to avoid recurrence in the future).
On the basis of 9 legal issues per year, what then is the average value of a legal problem ?
Below is the report findings on the issue – as can be seen there is a big variance but if you average everything out, the figure comes out at some £1,500.00 per problem. This, multiplied by 9 problems would give an indicative cost of £13,500.00 per annum as an average for a small business for legal problems. Many small businesses, for reasons I do partially understand, do not want to use lawyers – the main reasons are perceived expense and not seeing the value of a lawyer helping to resolve a problem. However, if the value is in helping your small business to significantly reduce if not erradicate a waste or loss of over £10,000.00 a year, that, surely, is a different proposition. The value therefore comes far more from preventing problems arising than in instructing the lawyer once a problem arises.
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