[Excerpt from the book "Playing To Win" by Olaide A. Banks]
Each year, approximately 625,000 small businesses startup, and about 640,000 small businesses fail. They either die a slow painful death taking the owners' dreams and fortunes with them, or they take the quicker and slightly less-painful route of dissolving in bankruptcy. Either way, for as much as small businesses are touted as the savior and backbone of the American economy, they are dying at a greater rate than they are being born.
According to a recent research study commissioned by the SBA Office of Advocacy, and conducted by the Klemm Analysis Group, legal disputes can have a devastating impact on small businesses. The cost of litigation for most small business issues can range from $5,000 for smaller disputes to over $150,000 for larger disputes. As an attorney who represents small businesses, the findings were not surprising to me.
The study found that: litigation is costly to business owners - costing both time and money; litigation modifies the way that small businesses do business; and litigation causes emotional hardship within small firms. Litigation can kill the momentum of a business. It diverts funds that could be used for investment and growth and directs them to activities that may offer little or no value to the future of the business.
Litigation is a business reality. Very little is accomplished by complaining about litigation so we will leave that for the politicians, activists, and political pundits. Our approach will be to focus on strategies and behaviors that help business owners to succeed in their business, avoid the common conflicts that lead to litigation, and position themselves to succeed if they encountered litigation.
Most small businesses survive on slim profit margins. Additionally, 95% of all businesses never cross the $1 million threshold for annual revenue. While there is no "average profit margin" for small businesses, for most businesses, a 10% profit margin would be more than acceptable in an average year. For a business with $1 million in revenue and a profit margin of 10%, the net profit would be $100 thousand.
Based on the earlier discussion about the range in cost of litigation, it becomes clear that the cost of one very serious legal dispute can wipe out all of a company's profit margin, and the loss of a major dispute could easily put a company out of business. [End excerpt.]
The most common forms of contract disputes we handle involve: commercial real estate leases; Partnerships and LLCs without detailed agreements; poorly documented loans and agreements; and poorly communicated employee policies.
As part of our transactional practice we help our business clients to properly review and structure contracts to avoid costly disputes in the future.
Many commercial tenants do not use a commercial tenant broker and some do not use a commercial broker at all. It is important to use a broker who understands the unique needs of commercial tenants or an attorney who is skilled in commercial tenant representation. Our firm represents tenants in commercial lease negotiations and we work with commercial tenant brokers on large transactions to ensure that they receive fair and competent representation.
When disputes arise we help our clients respond quickly and decisively to achieve their desired outcome.
For various reasons, many hardworking Texans are unaware of their rights and don't learn about their options until it is too late.
If your bank has threatened foreclosure, or if you are currently involved foreclosure proceedings, or if your property has been foreclosed by a lender - you have rights. You have the right to receive proper notice of all proceedings. You have a right to be presented with a detailed accounting of the amount you allegedly owe. Even after a foreclosure sale, you have the right to challenge your eviction if you are properly prepared.
If your property was foreclosed after you entered a loan modification agreement you may have an even stronger case.
We have successfully fought large banks and have achieved positive outcomes for clients who have faced improper foreclosure proceedings. Our work includes fighting in Federal Courts, Texas District Courts and Harris County Justice Courts. We stop at nothing to protect clients' interest.
Some of the successful work we have done has been reported on national television including Inside Edition. However, in most situations we work "under the radar" with our focus squarely on helping our clients win in disputes involving real estate.
For most families who own business, the business is the most valuable asset. In successful situations, the business is the tool by which generational wealth is transferred. However, only 30% of businesses transition from first generation to second generation. Just 12% transition to the third generation and less than 5% make it to the fourth generation.
As part of our transactional practice, we help families create succession strategies to mitigate risk, and provide for orderly succession in the event of undesirable disputes between family members. When there is no effective strategy in place, we represent our clients in litigation involving family businesses to protect their interests and preserve their wealth.
Each year, approximately 625,000 small businesses startup, and about 640,000 small businesses fail. They either die a slow painful death taking the owners' dreams and fortunes with them, or they take the quicker and slightly less-painful route of dissolving in bankruptcy. Either way, for as much as small businesses are touted as the savior and backbone of the American economy, they are dying at a greater rate than they are being born.
According to a recent research study commissioned by the SBA Office of Advocacy, and conducted by the Klemm Analysis Group, legal disputes can have a devastating impact on small businesses. The cost of litigation for most small business issues can range from $5,000 for smaller disputes to over $150,000 for larger disputes. As an attorney who represents small businesses, the findings were not surprising to me.
The study found that: litigation is costly to business owners - costing both time and money; litigation modifies the way that small businesses do business; and litigation causes emotional hardship within small firms. Litigation can kill the momentum of a business. It diverts funds that could be used for investment and growth and directs them to activities that may offer little or no value to the future of the business.
Litigation is a business reality. Very little is accomplished by complaining about litigation so we will leave that for the politicians, activists, and political pundits. Our approach will be to focus on strategies and behaviors that help business owners to succeed in their business, avoid the common conflicts that lead to litigation, and position themselves to succeed if they encountered litigation.
Most small businesses survive on slim profit margins. Additionally, 95% of all businesses never cross the $1 million threshold for annual revenue. While there is no "average profit margin" for small businesses, for most businesses, a 10% profit margin would be more than acceptable in an average year. For a business with $1 million in revenue and a profit margin of 10%, the net profit would be $100 thousand.
Based on the earlier discussion about the range in cost of litigation, it becomes clear that the cost of one very serious legal dispute can wipe out all of a company's profit margin, and the loss of a major dispute could easily put a company out of business. [End excerpt.]
BREACH OF CONTRACT
Contract disputes are the most common form of business litigation. We boldly advocate for our clients involved in contract disputes and use every tool available within the law to help them achieve success.The most common forms of contract disputes we handle involve: commercial real estate leases; Partnerships and LLCs without detailed agreements; poorly documented loans and agreements; and poorly communicated employee policies.
As part of our transactional practice we help our business clients to properly review and structure contracts to avoid costly disputes in the future.
COMMERCIAL LANDLORD-TENANT DISPUTES
Most commercial landlord-tenant disputes arise because the commercial tenant was poorly represented during the initial lease negotiations.Many commercial tenants do not use a commercial tenant broker and some do not use a commercial broker at all. It is important to use a broker who understands the unique needs of commercial tenants or an attorney who is skilled in commercial tenant representation. Our firm represents tenants in commercial lease negotiations and we work with commercial tenant brokers on large transactions to ensure that they receive fair and competent representation.
When disputes arise we help our clients respond quickly and decisively to achieve their desired outcome.
FORECLOSURE LITIGATION
Every day across Texas hundreds of families endure the indignity of being forced from their homes following improper and unfair foreclosure proceedings. In many situations, these foreclosure proceedings violate the mortgage contracts and subsequent loan modification agreements signed by Texas consumers.For various reasons, many hardworking Texans are unaware of their rights and don't learn about their options until it is too late.
If your bank has threatened foreclosure, or if you are currently involved foreclosure proceedings, or if your property has been foreclosed by a lender - you have rights. You have the right to receive proper notice of all proceedings. You have a right to be presented with a detailed accounting of the amount you allegedly owe. Even after a foreclosure sale, you have the right to challenge your eviction if you are properly prepared.
If your property was foreclosed after you entered a loan modification agreement you may have an even stronger case.
We have successfully fought large banks and have achieved positive outcomes for clients who have faced improper foreclosure proceedings. Our work includes fighting in Federal Courts, Texas District Courts and Harris County Justice Courts. We stop at nothing to protect clients' interest.
LAND DISPUTES
Since the inception of the firm, we have litigated disputes involving real estate in Texas. We understand that land is one of the most important assets in existence, and has always been one of the most important vehicles for building and transferring wealth.Some of the successful work we have done has been reported on national television including Inside Edition. However, in most situations we work "under the radar" with our focus squarely on helping our clients win in disputes involving real estate.
DIVORCE AND FAMILY LAW LITIGATION
We represent existing business clients in matters involving divorce, division of property and custody matters. We provide reasoned advice and skilled advocacy for our existing clients in these most sensitive matters. We understand how disputes between family members can cause an otherwise successful business to come to a grinding halt.For most families who own business, the business is the most valuable asset. In successful situations, the business is the tool by which generational wealth is transferred. However, only 30% of businesses transition from first generation to second generation. Just 12% transition to the third generation and less than 5% make it to the fourth generation.
As part of our transactional practice, we help families create succession strategies to mitigate risk, and provide for orderly succession in the event of undesirable disputes between family members. When there is no effective strategy in place, we represent our clients in litigation involving family businesses to protect their interests and preserve their wealth.