The Cost of Doing Business – when not to cheap out.

Recently we have heard of many businesses being hit with Crypto Viruses. This is a computer virus that holds your data ransom until money is paid to hackers and you receive some but hopefully all of your data. Each of the businesses that were hit did not have a professional running their IT. It was often someone’s brother, who was doing it “on the side” or in the worst case, a business owner who “doesn’t believe in paying for IT.”

Interestingly, after paying to get Data back, people start believing in paying for professional IT.

Similarly, over the years we’ve had clients who “incorporate themselves” …. and do it wrong ….. and pay us to “do it right.” That is the opposite of “saving money”.

The “best” examples of when not to cheap out are the clients who decide they don’t want to pay for us to prepare an employment contract (between $ 500.00 and $ 2,000.00 depending on how complex) and end up paying well over $ 10,000.00 to defend wrongful dismissal law suits and payout judgments for not complying with the law in Ontario.

Remember, sometimes the cheapest solution is not the most cost effective solution in business law.

Inga B. Andriessen JD