Protecting Your Business from Legal Issues: 5 Simple Steps
Now that you have built your business, it’s time to take things to the next level. You must plan for future growth and opportunities, secure financing and networking, build relationships with clients and suppliers, and secure a strong brand presence. With all these activities, do not forget about legal issues. Legal issues are one of the biggest threats to businesses of all sizes, regardless of their sector or location. Legal issues can destroy your company from within without proper precautions in place and expose you to various risks. This article will highlight some common legal issues that may arise in your business and offer advice on how to protect yourself against them.
Use Written Agreements
“In a dispute, I promise I will do everything I can to resolve it.” These are the words that can end up costing you dearly. Many legal issues arise from verbal agreements, which are difficult to prove in a court of law. For example, employees may claim that they were promised a specific salary or benefits once they reach a certain level, but there is no written evidence. As a business owner, you should use written agreements to protect yourself from legal issues arising from verbal agreements. Written agreements are more likely to be adhered to than oral agreements. They provide a clear understanding of what each party is expected to do. Written agreements allow both parties to address issues and make changes before things get out of hand. They can help avoid misunderstandings, breach of contract claims, and other legal matters.
Check Everything You Sign
Always make sure that you understand what you are signing, and if you don’t, have a lawyer review it to ensure everything is in order. This is especially important when partnering with another company or signing a contract. When signing contracts with clients and vendors, make sure you read the fine print and understand the contract terms before you sign it. This way, you don’t get stuck in a contract that you can’t get out of.
Get Good Legal Advice
Legal issues rarely happen suddenly. They are usually a result of a series of events over time. This means that there is a lot of time for you to take action before they become a problem. If you feel a legal issue is threatening you, you should take advice from a lawyer such as Manfred Sternberg & Associates. This gives you time to implement your action plan before things become critical. This can not only help save you money but also help keep your reputation intact. Good legal advice will also help you avoid any unnecessary litigation.
Register Intellectual Property
During their operations, businesses often create intellectual property (IP), such as software, content, logos, and trademarks. If you have registered an IP, you may have the right to protect it by registering it with a government authority. This is because IP is a kind of property that you can defend, just like a house or a car. Doing so will allow you to prevent others from misusing or profiting from your IP, which can be very helpful in avoiding legal issues. IP registration also acts as a deterrent for potential litigants because they will know that you can use them for misusing your IP.
Take Out Insurance
Insurance is a great way to protect your business against legal issues and other threats. There are many types of insurance that you can take out, such as business interruption insurance, cyber insurance, directors’ and officers’ insurance, errors and omissions insurance, general liability insurance, product liability insurance, and more. Depending on your business and its threats, you may want to take out one or more types of insurance.
Legal issues are a common challenge for all businesses, and they can be very costly if they go unresolved. To keep legal issues at bay, you need to be aware of the different legal issues and put preventative measures in place. With these simple steps, you can protect your business from legal issues and build a strong brand presence.