Whether you are a veteran business owner or just starting out, there are some key mistakes you can make that often lead to litigation. No one wants to be the object of a lawsuit, so I thought I would take a minute and highlight some common mistakes that sometimes lead to suits and how to avoid them:
- Form a business entity. Make sure you know what type of entity to form and that you check all the correct boxes as you move through the process.
- Obtain insurance. We insure our homes, our cars, and even our wedding rings. Your business should be no exception. Where there is equity, there is risk, and insurance ought to be one of the first things on your checklist as you build your business.
- Write it down. It’s important that you require all business agreements be hammered out in contract form, looked over by an attorney, and signed on the dotted line. Leaving this to chance never ends well.
- Protect your intellectual property (IP). If you think of it, you own it. Do not dismiss the importance of IP and how imperative it is to protect it as you scale your business.
- Trust your employees. No one likes to be micromanaged, and traditionally speaking, employees who are trusted to do their jobs correctly are more content and less likely to cause issues down the road.
- Hire smart. If you hire the right employees, making sure to flesh out references and pay attention to red flags, you will build a business that runs smoothly and help avoid litigation.
- Understand local laws. From copyright laws to taxes, there is a lot to wade through. Failure to put in the work to understand these laws can cause real problems down the road. Be sure to get a lawyer involved earlier than later to help navigate these issues.
- Prioritize accurate bookkeeping. Messy accounting has been the nemesis of many business owners. If this is not your cup of tea, consider hiring someone to help out.
- Pay quarterly taxes. Getting behind on taxes is a bad way to run a business. Keep up on all of your accounts, especially taxes, to avoid issues later.
- Under promise and overdeliver. Customers do not like to be disappointed. Be careful not to make promises you can’t keep. Under guarantee results so you can overdeliver, ensuring customer satisfaction.
If you have questions about how to best protect your business, reach out to us today.
Ravosa Law Offices, PC 