Law Times

Law Times • July 7, 2014 Page 11 www.lawtimesnews.com Lawyers, firms zooming in on small business, tech startups By Michael McKiernan For Law Times fter a couple of sum- mers and a year arti- cling at one of the larg- est law firms on Bay Street, Mike Hook realized that big law and big business weren't for him. "It didn't feel like a particularly good fit, so I thought I would go in the opposite direction as far as I could," says Hook. At the other end of the legal spectrum, he has found a niche with his new solo practice serving small businesses facing the chal- lenges that inevitably come with a growing enterprise: incorpora- tion, employment issues, and con- tract negotiation, among others. "It's the clients that attracted me, dealing with entrepreneurs and principals who know it's up to them to put food on the table. They're a very motivated and ex- citing group," he says. Hook is often the first contact many of his clients have had with lawyers and if he's lucky, they haven't engaged in a do-it-yourself job on the legal side beforehand. "I've had some interesting con- versations where it's clear they've gone off and done some things on their own. Then after the fact, you end up dealing with some unex- pected consequences," he says. "Often, they don't know how to use a lawyer, so I can spend a fair bit of time educating them." Even when there's no legal mess to clear up, accepting they need a lawyer can be grudging for small businesses, especially when the bills start coming in. Hook says he's open to alterna- tive billing arrangements but he tries not to simply slash his rates. "Money tends to be tight, es- pecially in startups. With a bit of growth and a little more cash f low, it gets easier, but I think a lot of people view lawyers as a necessary evil," he says. "I'm not interested in getting into a race to the bottom. I try to add value in the services I offer instead of cutting price. I can be proactive about things to help them shape policy and prevent issues arising. With things like the anti-spam law, I can push out simple checklists they can go through themselves to make sure they're compliant with the law. Those value-added ele- ments make the sticker shock a little more palatable." Hook says his clients get some additional comfort from knowing he has spent time in their shoes. Apart from his entrepreneurial legal practice, he's also part own- er of a startup whisky distillery. "It certainly goes a long way to building trust because I'm able to empathize with them. Money is limited, time is limited, and they can't afford 100-per-cent solu- tions. I'm able to understand that they sometimes have to prioritize tasks and look at the big picture as opposed to the minute details." Ted Maduri, a partner in the Toronto office of Davis LLP, says his smaller clients also appreciate his personal experience in busi- ness. Before his call to the bar, he was involved with the family food business and also helped his brothers, who he calls "serial en- trepreneurs," in their endeavours. "I understand how painful it is sometimes to part with hard- earned dollars on legal fees," says Maduri, who has devised a legal startup kit for clients. "As a result, I spend a lot of time making sure that I provide a very competitive quote. I then spend a lot more time making sure I stick to it." Maduri says one of the most significant differences between smaller and medium-sized businesses and their more estab- lished counterparts is their lack of internal legal support. "I try to fill the role of being an external in-house counsel. I'm like their quarterback. They'll call me as their guy to get them some an- swers for their tax needs, their em- ployment needs or their IP needs, and then I can go out and bring in experts from different groups at the firm as needed," he says. Albert Luk recently switched sides after a number of years catering to small and medium- sized enterprises in private prac- tice. In March, he joined Jumble- berry Interactive Group Ltd., an online advertising firm that was previously a client, as in-house counsel. Now Luk is the one looking for high-quality legal representation and there aren't as many options as he'd like. "I think the SME sector is an un- derserved space. Even mid-sized law firms see their ideal clients as the large institutional clients, which has left a bit of a gap in service between startups and in- stitutions," he says. "Firms are falling behind if they don't recognize that there are nuanced cultural differences to serving small and medium- sized enterprises versus very large institutions." One sector of smaller busi- nesses that does get plenty of attention, even from Bay Street's behemoths, is the technology startup. In November last year, Dentons Canada LLP launched its startup program. Andre Garber, a Toronto partner who directs the program, says it for- malized a historic relationship with early-stage companies. "Being part of such a big firm allows access to so many more services and lawyers who have specialization in particular in- dustries," he says. Curtis Behmann, a partner at Borden Ladner Gervais LLP's Ottawa office, is involved with the firm's recently launched pro- gram that offers legal fee offsets worth up to $10,000 to technol- ogy startups that have attracted certain government funding. He says the range of talent avail- able at large law firms makes it easier to match the needs of a fast-growing company. "We have people at vari- ous levels, including world re- nowned experts in certain fields, but if a startup doesn't need that level, we have someone with the skills and ability to do it at a rea- sonable price," he says. LT FOCUS WWW.CANADIANLAWYERMAG.COM/LEGALFEEDS A DAILY BLOG OF CANADIAN LEGAL NEWS FEEDS LEGAL POWERED BY Untitled-3 1 14-05-27 1:32 PM Untitled-6 1 14-06-30 3:32 PM A Besides helping small businesses, Mike Hook is part owner of a startup whisky distillery.

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