Prevention is Cheaper Than Treatment: Why It is Better to Consult a Lawyer Before It “Hurts”

Prevention is Cheaper Than Treatment: Why It is Better to Consult a Lawyer Before It “Hurts”

There are certain professions people only think about when problems become urgent. Dental treatment costs significantly more than an annual check-up, and delaying a visit can lead to complications. Yet, patients often neglect preventive visits and go to the dentist only when the pain becomes unbearable. The same goes for lawyers—people remember them when the […]

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People often see lawyers as problem-solvers—someone you call when you’re already in trouble. Whether it’s a lawsuit delivered to your mailbox, a dishonest business partner, a fine, or an unexpected tax audit, these are the moments most people think to reach out to a lawyer. But the idea of consulting a legal expert beforehand—before signing a contract or making an important decision—seems unnecessary to many. After all, why spend money on potential issues that might never arise?

Unfortunately, even business owners often share this mindset. This is surprising, considering the stakes are much higher in business dealings than in personal legal matters. It would be wise to think ahead about properly managing your business and structuring your contracts.

As a result, people usually seek legal help only when they’re in over their heads—when the issue is too complex to handle without expert knowledge and experience. Of course, a skilled lawyer will do everything possible to resolve the problem. But by the time the situation has escalated, it will require more time and resources, including your money. And often, even the best lawyer can no longer guarantee a favorable outcome.

Many of these issues could have been prevented by seeking legal advice early on. Let’s explore the scenarios where timely legal support is crucial and how it can save you from unnecessary stress, expenses, and wasted time. It also brings peace of mind, knowing that your actions and business decisions are on solid legal ground.

Starting or Relocating a Business

This is the first and most vital step in building your own business empire. The foundation you lay at this stage will determine how confidently you can navigate the market.

That’s why it’s essential to involve a lawyer during the registration process—or better yet, delegate the entire process to them. A legal expert will guide you through each step, explain the requirements, help you gather the necessary documents, and submit them to the relevant authorities—or even handle the submission on your behalf.

If you’re setting up a business in another country, it’s crucial to work with a lawyer who has the right qualifications and professional expertise. Legal systems in the EU and CIS countries are very different, so you need someone who is not only experienced but also educated in the specific legal requirements of that country. For example, if you’re planning to operate in the Netherlands, you’ll need a lawyer who holds the necessary legal degree and has hands-on experience with Dutch business registration.

Oxana Brizmer, Partner at Herz Lawyers, graduated from Leiden University and is currently pursuing a Master’s degree at the University of Amsterdam in the Netherlands. With over 8 years of experience, she has been assisting entrepreneurs in the Netherlands.

If you’re planning to move your business to another country, like from a CIS country to the Netherlands or anywhere else in the EU, don’t assume it will be as straightforward as it was back home. The rules and procedures are completely different, and the process can be quite complicated. Without the right knowledge—and a good command of the local language—you might end up wasting a lot of time, energy, and money fixing avoidable mistakes. Working with an experienced lawyer can save you all that hassle and get your business set up smoothly.

One of the biggest headaches for entrepreneurs from other countries is opening a business bank account. This process can take up to six months, and there’s no guarantee of success. A single wrong answer during the bank’s KYC (Know Your Customer) verification process can result in your application being denied.

That’s why it’s worth contacting a specialist with experience in the country you’re planning to relocate to. In addition to all the advantages mentioned above, it’s also convenient: a lawyer can help you register your business remotely, saving you money on constant business trips.

Herz Lawyers will guide you through the process of starting a business in the Netherlands and relocating while ensuring full compliance with all immigration requirements. Describe your situation, and we’ll provide you with a tailored solution.

Due Diligence and NDA

A crucial step in any business transaction is conducting Due Diligence on your counterparty. Knowing that you’re entering into a contract with a reliable partner isn’t just about peace of mind—it also demonstrates that you exercised proper caution, which can be crucial if a dispute ends up in court.

Sure, you could try to do this check yourself. But it’s likely to be time-consuming and less effective. Without the necessary experience, you might struggle to find the right sources of information or know what red flags to look for. In contrast, a lawyer can complete the check in just a few hours, thoroughly examining all relevant details. They’ll review public records, check if the counterparty is involved in any legal disputes or enforcement actions, analyze the findings, and advise you on potential risks.

In the end, a professional can complete the due diligence in about two hours, costing you up to €400. This saves you from spending several days on the task—time that could be better spent growing your business. More importantly, it protects you from risks that are impossible to quantify: your counterparty could turn out to be a fraudster, a chronic litigant, or simply an unreliable partner. This could lead to real financial losses, missed opportunities, and even damage to your reputation. For instance, if their actions prevent you from fulfilling your own obligations, your business could suffer significant setbacks.

Before entering into any collaboration, it’s also crucial to sign a Non-Disclosure Agreement (NDA). At this stage, you and your counterparty don’t yet have a formal contractual relationship, and they are under no legal obligation to you. Sharing sensitive information—like financial data, trade secrets, or details about your collaborations with other partners—carries significant risks. You have no control over how they might use that information. That’s why it’s essential to consult a lawyer who can draft a customized NDA, clearly outlining the counterparty’s legal responsibility for any misuse of your valuable information.

Contracts: Drafting and Signing Agreements

Many people still overlook the importance of involving a lawyer at this stage. After all, the internet is full of contract templates—so why bother hiring a professional? The problem is that standardized templates don’t account for all the nuances of your specific situation. Worse yet, a contract drafted by the other party could include unfair terms, such as imposing disproportionately high liabilities on you while minimizing their own responsibilities. Only a lawyer can identify these hidden pitfalls and explain the potential risks, ensuring you’re fully protected before you sign.

When Problems Arise

If you didn’t check your counterparty and signed the contract without a thorough review, you’re taking a big risk. Maybe nothing will go wrong—but hoping for the best isn’t a reliable business strategy.

This is usually when people finally reach out to a lawyer. Maybe the counterparty didn’t fulfill their end of the deal, or you received a legal notice. At this point, fixing the problem becomes more complicated, expensive, and time-consuming. Plus, your lawyer won’t be able to guarantee a successful outcome because you’re already bound by a contract that may have unfavorable terms, or you’re dealing with an unreliable partner.

By consulting a lawyer early on, you can avoid these situations altogether. They can help you verify your counterparty’s credibility, review or draft the contract to protect your interests, and spot any red flags before you sign. It’s a proactive step that can save you from a lot of stress, financial loss, and legal battles down the road.

Worst-Case Scenario: You Can’t Avoid Hiring a Lawyer

You ignored all the opportunities to get legal help, and now you’re facing serious consequences: a hefty fine from a government agency, a lawsuit from a counterparty, or even a court ruling against you. Unfortunately, this is the point when most people finally decide to call a lawyer.

By this stage, resolving the issue will take the most time, require the highest costs, and carry the most risk. And here’s the hard truth—no honest, qualified lawyer can guarantee a favorable outcome. They can share the risk with you by, for example, partially waiving their fee if the case doesn’t go in your favor. This is the approach Herz Lawyers follows. But promising a positive result without fully understanding the details of your case just isn’t possible.

To avoid getting to this point, remember the golden rule: it’s much easier to prevent legal penalties than to fight an unfavorable court decision. Consulting a lawyer early on can save you from costly mistakes and protect your business from serious risks.

How can we help you?

Just as taking care of your health helps you stay active for years to come, choosing the right lawyer protects your financial well-being. A lawyer’s fee is not merely an expense; it is a strategic investment that safeguards you from costly complications down the line. Spending €250 today could save you thousands tomorrow by avoiding legal issues before they arise.

Herz Lawyers offers comprehensive “Turnkey Legal Support” for your business. Schedule a consultation, and our specialists will explain how we can help you navigate legal matters with confidence.

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