The Lawyer You Can't Afford to Skip
Clif Bar: A Case Study
One of the most common things I hear from early-stage founders: "We can't afford a lawyer right now."
I get it. When you're bootstrapping, every dollar matters, and legal fees feel like something you can push off until you're bigger. The problem is that by the time you need a lawyer urgently, you're already in trouble, and trouble is expensive.
The founder of Clif Bar learned this twice.
The first time, he ran an ad implying that competitor PowerBar was inferior because it didn't use natural ingredients. PowerBar sued. Insurance covered the settlement, but that's not a safety net you can count on - and the distraction alone cost time and energy the company couldn't spare.
A lawyer reviewing that ad copy beforehand would have taken maybe an hour. They would have flagged the risk and suggested language that made the same point without inviting a lawsuit.
The second time was worse. The founder made a distribution deal on a handshake, no written contract, just a verbal agreement. When the distributor didn't hold up their end, he cancelled the arrangement. But because nothing was documented, the distributor sued for ownership of the company. The legal battle cost so much that Clif Bar had to take out a bank loan to survive it.
A basic contract would have prevented the whole thing. Not a complex legal document, just something in writing that established the terms and what happened if either party walked away.
Here's what I want founders to understand: lawyers are more accessible than you think.
You don't need a big firm on retainer. For early-stage companies, there are plenty of options:
Flat-fee services for specific tasks. Contract review, terms of service, basic agreements - many lawyers will do these for a fixed price, not open-ended hourly billing.
Legal clinics and small business resources. Many cities have programs specifically for startups and small businesses. The SBA, local bar associations, and some law schools offer low-cost or free consultations.
Fractional or startup-focused attorneys. Some lawyers specialize in working with early-stage companies and price accordingly. They've seen the common mistakes and can help you avoid them quickly.
The question isn't whether you can afford a lawyer. It's whether you can afford the lawsuit, the lost deal, or the ownership fight that happens when you skip one.
Before you sign anything, make a claim about a competitor, or shake hands on a deal - ask yourself what it would cost if this goes wrong. Then spend the smaller amount to make sure it doesn't.