Small Business Owners Lose Millions by Skipping Legal Help, LegalShield Data Shows
Event summary
- 52% of small business owners handled their most recent legal situation without professional help, with 74% of them losing money.
- 25% of those who went it alone lost between $25,000 and $100,000, while nearly 1 in 12 lost more than $100,000.
- 66% of boomer-owned small business owners are at or near retirement age, with half expecting a sale or transfer within five years.
- 28% of these owners have no written succession plan, and 29% of heirs or successors don't fully know what the owner wants.
- 76% of small business owners say affordable, on-demand legal support would be extremely or very valuable.
The big picture
The data highlights a significant gap in legal preparedness among small business owners, particularly those approaching retirement. With an estimated $10 trillion in assets at stake, the lack of succession planning and legal guidance poses substantial financial and relational risks. This trend underscores the growing need for accessible legal services in the small business sector, presenting an opportunity for providers like LegalShield to address this critical market demand.
What we're watching
- Succession Planning
- How the lack of preparation among small business owners will affect the successful transfer of 2.3 million boomer-owned businesses this decade.
- Legal Services Demand
- Whether LegalShield and similar providers can capitalize on the overwhelming demand for affordable, on-demand legal support among small business owners.
- Financial Consequences
- The pace at which small business owners will realize the cost of not having legal guidance and seek professional help.
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