Deakin on small operators: Risky business without advice

By John Van Klaveren
GEELONG businesses are leaving legal advice until it’s too late, according to a Deakin University study.
Dr Lucinda Jordan, of Deakin’s Centre for Rural Regional Law and Justice, said the study reveal limited understanding among small businesses about legal advice available to them.
“Over half of our (207) small business participants responded that they rarely sought legal advice regarding their business affairs,” Dr Jordan said.
“Instead, their use of lawyers was primarily reactive rather than for preventative purposes.
“The reasons for this relate to a lack of awareness by small business owners around what services and skills lawyers can provide as well as a general lack of understanding as to recognising when a legal issue has actually arisen.”
Geelong lawyer Andrew Senia backed the findings, saying local examples of businesses taking significant risks without advice left him “bewildered”.
“Too often we’re contacted only after a problem has occurred,” he said.
“People risk their life savings when they start an enterprise and sign documents without having them checked.
“Sometimes they sell a business with documents prepared by unqualified people only to find enormous problems and liability down the track.”
Retro Age Vintage Fabrics owner Vanessa Pope said she had questioned whether to have a lawyer check a lease on a new shop.
“I had to think of it the same as the other variables of small business, like marketing, budgets and business plans. Legal advice was just as important.
“People can be daunted by lawyers and legal jargon and leave it until the last minute.”