When you own a business, you focus on moving it forward. Yet it only takes one person or entity to threaten you with litigation to bring your progress to a standstill.
A potential lawsuit can take up a lot of your time and bring stress and uncertainty to the company and workforce. All in all, it is bad for business, so you need to do all you can to reduce the chance you face any.
Litigation can come from all sides
People often think in linear terms when planning business. For instance, the phrase “supply chain” suggests you can look up or down the chain and find everything you need. Taking a 360-degree view helps you realize that problems could come from anywhere. Here are some of the areas legal issues could arise:
- The workforce: Employment laws are complex, and it is easy to upset people if you do not fully understand all relevant laws.
- Business partners: They are meant to be on your side, yet sometimes it may not feel that way.
- Investors: As Twitter recently found out, not all investors are happy to stay silent in exchange for a regular return.
- Government agencies: Whether it is the IRS, the environmental agency or the local town planning committee, there are many legal requirements to comply with.
- Customers and suppliers: Many client and supplier issues come down to a weak contract. Getting help to ensure yours are strong and suitable for the purpose is crucial.
Trying to deal with the threat of business litigation alone increases the chance it ends badly for you. Bringing in early legal help can reduce the chance issues occur and help you resolve them quickly if they do.