Recently celebrating our five-year anniversary has given me the opportunity to think about how far we’ve come, while in the midst of thinking about where we’re going next. When we started Nemphos Braue, we wanted to practice the law differently – to treat clients as strategic partners, not just customers in a taxicab with the meter running.
What I’ve come to realize is that it’s our clients who have helped us as we’ve grown by solidifying what it means to be a different kind of law firm. As a way of expressing our gratitude and to say thank you to our clients, I’m sharing five critical lessons we’ve learned by working with entrepreneurs.
1. Have fun
If it’s not fun, then honestly, what the $@#$ (bleep) are we doing here?
Through the phases of ideating, building and scaling, it is such a rush to be a part of helping someone’s dreams come true. Don’t get me wrong, it can be crazy at times, but when you’re in the thick of important conversations and making critical decisions, it helps to be working side-by-side with someone you actually like. Mutual respect and camaraderie, complete with a sense of humor and the occasional happy hour or pour of whiskey are part of what we’ve come to enjoy about working with our clients. The paperwork will always be there, but the opportunity to be a true counsel to our clients and to inject life into your life’s work means much more.
“When you’re in business long enough, you realize that life is short, and you only want to be spending time with the people that you care about. You want to be spending time with people you actually want to spend time with ... and that goes for lawyers too,” said Greg Vetter, CEO of Tessemae’s, a client of Nemphos Braue and producer of organic salad dressings and condiments.
2. It’s OK to say no
We’ve counseled our clients through multiple capital raises, the flattering requests of interested buyers, employee and vendor contracts, merger opportunities and structuring decisions. Part of what we bring to the table as lawyers is experience – we’re there to perform the due diligence for our clients and we’ve seen how things can go sideways or be hugely successful. We know the pitfalls to look for along the way, and some pitfalls are just too deep to risk.
While we provide advice and risk mitigation planning, most entrepreneurs have a second sense – a gut feeling – that’s a well-honed skill and a super power for protecting one’s business, if harnessed correctly.
How can it go wrong? We had one client who got very big, and brought in lots of capital, only to realize later that certain deals were too favorable for the investors and unknowingly giving away too much control and diminishing the founder’s controlling interest. We were able to step in to salvage as much as we could for the founders, but in hindsight, saying no may actually have saved the founders money in the long run.
3. Nourish relationships
My co-founder Tim Braue and I have clients who have stayed with us for more than 15 years. Why? Trust. We work with several serial entrepreneurs who have bought and sold multiple companies, worked with independent sponsors, venture capitalists and private equity firms on multiple entities, and switched or bridged industries. We roll up our sleeves each time to review documents, analyze options and advocate for our client’s best interests. We pick up the phone and we believe in being responsive above all else.
Here’s the real truth, though: The deal isn’t the end point. We check in, we answer questions, we address follow-ups and follow through. We listen.
I’ve watched how our clients have succeeded through their own strong relationships. A food manufacturer was able to call on suppliers and distributors to figure out logistic challenges during the pandemic. A cybersecurity company was able to triple the amount of contracts it had with a government agency. A healthcare technology company acquired the maker of a product that had in-roads with key medical providers, securing new business opportunities. The saying used to be: “It’s all about who you know.” Now, when your name is readily available on every digital platform, it really should be more about how well you know them.
4. It’s about the people around you
For many small businesses, the people around you are family. Maybe they are early investors or providing support as you bootstrap your company. Perhaps they are co-founders or other supporting members of your executive team. Even if the last name is the same, embrace their differences and skill sets thoughtfully. As a founder, know your strengths and elevate the strengths of others. The COO has huge responsibilities, and the title isn’t bestowed lightly, even if you are the founder’s sibling. Documentation, operating agreements, co-founder agreements, and structuring decisions matter, even in a family business. Having a lawyer as a neutral party can help – though if you choose to discuss politics at the family dinner table, you’re on your own.
Who you work with can say even more about your company than having your name on the sign out front. You won’t make the right hiring decision every time. If you’re diligent though, and consider the whole person, their personality and the fit within your company culture – in addition to the resume – you’ll be right most of the time.
5. Don’t stop thinking
One of the most inspirational aspects of working with entrepreneurs is watching their minds work, hearing their excitement and anticipation for new products, new partners, new ventures and new angles and practically seeing the light bulbs constantly appearing above their heads. What’s the keyword there? New. Get stale and the competition will steamroll you. I can’t stop thinking about my company, even on vacation. (I once took a call from the jungle and nearly became a lion’s dinner. Let me know if you want to hear that story sometime.) That’s what it means to be a business owner. Startup business hours are sunrise to sunrise.
(See #4: Hopefully you hire good people so you can at least get some sleep.)
Here’s to the next five years ... and beyond. Thank you to our clients, colleagues, staff and families who put up with us, stand behind us, and celebrate with us. We’re looking forward to even more lessons learned on our entrepreneurial journey.
Looking for legal expertise? Our expert counselors left the largest firms in the world to practice law differently, and are committed to driving legal and business value for clients by fostering true strategic partnerships. Contact Nemphos Braue to learn more.
George Nemphos and Tim Braue started Nemphos Braue LLC in 2016, combining big firm expertise with the flexibility and creativity of a boutique practice. From venture capital and private equity to intellectual property, mergers and acquisitions and general corporate counsel, Nemphos Braue is a different kind of law firm. www.nemphosbraue.com
