Building a successful business from the ground upwards is not an easy task. There are so many things firmly stacked against you that the odds say you are likely to fail. To get through the tricky period, you need to work hard and make the right plays. But, all of a sudden, you can get hit by a lawsuit that destroys the company. Life just isn’t fair at times. Obviously, you want to avoid lawsuits at all costs because they are not good for your reputation or your bank balance. So, what can you do to make sure one never darkens your door? You can take a look at the tips below and take them into consideration in your everyday business life.
Watch What You Say And Do
Most lawsuits occur because someone within your company acts careless. It might only seem like a throwaway comment at the time, but that doesn’t matter if it is defamatory. In fact, some comments don’t even need to be defamatory in this day and age as it seems you can sue anyone for pretty much anything. The culture that businesses operate in should dictate your policy: keep your mouth firmly shut. ‘Towing the party line’, also known as being diplomatic, is always the best way to keep out of trouble.
Put An Emphasis On Training
As you know, it only needs one individual to say something or act out of turn to cause trouble. Your employees work for you, therefore, they represent your business. In the end, that could mean that your business is liable, even if you are not liable as the business owner. Everyone needs to know what they can and cannot say if they want to be able to toe the line. The best way is to offer thorough training sessions. Hiring a professional to offer guidance on what to say and do is a must, especially if you work with the media.
Separate The Individual From The Business
What is the structure of your company? It is well worth knowing because it can affect you personally if a lawsuit is imminent. For example, if you are the sole proprietor of a business, it means you are personally liable and you can get sued, too. Sounds extreme, doesn’t it? But, it has been known to happen on more than one occasion. One tip worth remembering is you can separate the individual from the business in most cases. Make sure there is a structure in place that doesn’t make you the guilty party should your business make a mistake.
Insure Yourself
Lawsuits are expensive; that is no secret. If you are personally liable, where are you going to find the money? The chances are that you or the business don’t have the cash, so you are going to need a plan B. Thankfully, an insurance policy is the perfect plan B. Should you have to face a lawsuit in court and lose, the insurance company should pay out and cover your expenses.
Insure Your Business Too
The same goes for your business. No one wants to take the cost of a lawsuit out of their earnings, mainly because it is not possible. A separate policy for your business should cover all the angles.
Hire A Great Lawyer
Lawyers are neutral territory, a bit like Switzerland. On the one hand, they can sort through all of the complex legal processes to ensure that you and your business are safe. And, on the other, they can act as mediators should any dispute occur between you and your staff. It is not always external sources that are the cause of a lawsuit because employees will sue if they have grounds. For starters, it is important they don’t have reason to sue, so a good standard health and safety policy is essential. However, if they do have a right to compensation, a good law firm will find a suitable outcome for both parties.
Protect Your Files
Most businesses use the Internet to carry out their everyday jobs. On the whole, there is nothing wrong with that, as long as the software doesn’t breakdown. As a business, you may have a contract with your clients that you need to keep. Most clients do not like lateness because it can set their company back by quite a margin, too. If they lose money as a result of your lack of punctuality, they will sue. And, because it is written down in a contract, they will have a strong claim. By protecting your files, you can always carry out work regardless of the state of your technology. Alternatively, you can back the files up off-site so that they are always available.
Go Under The Radar
Why would you want to stifle your progress? Business is hard enough as it is without being your own worst enemy. True, but lawsuits can occur when you turn up on another, bigger company’s radar. That’s right, they will gladly file suit to try and stifle a growing business. After all, you are the competition and they need to stop you when they get the chance. By shrouding yourself in secrecy, or appearing as you are smaller than you are, you seem less of a threat. When a bigger company decides to throw their weight around, it is hard to stop them. The plan is to stop them before they can get started.
Make Friends
Businesses with friends in the industry are more likely to get preferential treatment. Okay, if you do something wrong, your friendship won’t count for much. But, the industry is also a volatile place, and businesses will file suit for any little reason. If you have friends, there is less chance that they will sue for a small or medium issue. Just make sure you don’t make any big gaffs and you will be fine.
The threat of a lawsuit is ever present for any business. All you can do is follow the basics and hope that you avoid them for the foreseeable future.
Photo by Martins Zemlickis
Milo Senalle
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