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“An ounce of prevention is worth a pound of cure.” That is the advice Benjamin Franklin gave to the city of Philadelphia in hopes of protecting the city from disastrous fires. Mr. Franklin sagely posited that time and money spent preventing fires is a more efficient and effective use of resources than spending time and money fighting fires. Stated differently: don’t be pennywise but pound foolish—it is better to invest in precautions than to suffer severe consequences later.
An ounce of prevention is worth a pound of cure. That is advice I find myself giving clients time and time again. I give that advice, and find it to be important, because I know it to be true. I have seen the power of that advice firsthand through clients, colleagues, and family.
Unfortunately, the truth of that advice is most apparent in those instances when the advice was not followed. That’s when (often preventable) tragedy occurs— misfortune strikes, a business folds, or a person loses everything. Or even if the business is financially capable of weathering the storm, the cost of putting out that blazing inferno is devastating in comparison to the cost of avoiding it in the first place, or keeping the fire contained in the fire pit before it spreads. It happens too often. And it is heartbreaking to watch unfold, knowing it could have been prevented.
What is this prevention I am talking about? Here is one way to think about it:
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Identify your risks. What could go wrong?
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Evaluate your exposure to those risks. If it goes wrong, how much could it harm me?
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Eliminate the risk if you can. If it cannot be avoided, then mitigate your exposure to the risk. How can I safeguard against the fire starting, or keep it from burning out of control?
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Be prepared to promptly defend your interests if the risk turns into reality. Take action as soon as there is smoke; don’t wait for the fire. Am I prepared to engage an attorney early and often?
Just as important as knowing how to define and practice prevention is knowing WHEN to implement it. Here are some common moments when an ounce of prevention can be worth a pound of cure:
a. Starting, buying, or selling a business.
b. Buying, selling, or leasing property.
c. Owning a closely held business.
d. Entering into a contract to sell or buy services or products.
e. Your employees or customers have been involved in an accident involving injuries to people or damage to property.
f. Buying insurance.
g. If you are involved in a highly regulated business or one requiring licensure.
h. Complaints and investigations from professional licensure boards.
i. Compliance with federal, state, and local employment regulations, including overtime compliance, and harassment training.
j. Whenever your business receives a subpoena for records or other legal processes.
k. Whenever you or your business is sued or threatened with a lawsuit.
l. You're owed money.
m. Taking on debt.
n. Taking on new investors.
o. Annually (end of year/start of new year).
p. Tuesday.
I say “Tuesday” partly in jest, but it is still true. Any day, without a specific event, is a good day to get a checkup to find “opportunities” for prevention.
As a lawyer, I prefer to find myself in a position to help clients down the road of prevention. I prefer to get involved at the front end of the numerous events listed above. However, I’m also too often called in at the back end, in the challenging position of trying to fight against the blazing inferno, which either ends in putting the fire out, but at an enormous cost, or in the entire city burning down (regardless of how well and hard we fight). Those that have learned the lesson the hard way can assuredly attest—that litigation is the most expensive and time-consuming way to deal with problems and should be avoided if possible.
From my perspective, an ounce of prevention is worth far more than a pound of cure, and hopefully you never have to learn the value of that advice the hard way. Instead of being pennywise, pound foolish, and short sighted in those critical moments, strive to understand that investments in prevention are parts of the cost of doing prudent business. I suggest you take Benjamin Franklin’s advice: it is wiser to spend ounces on attorneys to mitigate your risks than it is to hope you never need an attorney.
In sum, now is as good a time as any, in fact, it is the opportune moment, to re-evaluate your business strategies, recalibrate your priorities, and fortify your defenses against potential risks and challenges. Spend that ounce now. Your future self will thank you.
Very truly yours,
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