Three Ways To Lessen Your Risk Of A Lawsuit After You Start A Small Business
When you start a small business, you likely have your mind set on turning a profit as quickly as possible and establishing the brand in your community. Few things can disrupt these goals as quickly as facing a lawsuit — especially early on in the venture. Lawsuits are always difficult to deal with, but when you may lack the funds to fight the suit because your business is still new, they can be absolutely devastating. Consulting with a business attorney is one of the best ways to lessen the risk of facing a lawsuit, either in the early stages of your business or at any point. Here are some specific ways that your attorney can help you to lower this risk.
Research Names And Logos
When you have an idea of the name and logo that you want to use for your small business, an attorney who specializes in trademark law can help you to determine whether it's safe to proceed. Choosing a name or a logo that is too similar to an existing one could have you facing a lawsuit. Even if you were able to settle the suit quickly with the help of your attorney, having to change your name and logo soon after you've started to publicize them in an effort to promote your business would be highly disruptive.
Advise You On Record Keeping
While you'll also want to work with a bookkeeper, a business attorney can talk to you about the importance of record keeping. Many business attorneys have experience representing clients who are being audited or who have other financial and legal issues. A poor approach to managing your financial records could potentially lead to an avoidable lawsuit — for example, being sued by a supplier because you failed to make a payment as a result of being disorganized.
Guide You In Being Realistic
When you run a new business, it's easy to be so focused on getting a good reputation in your community that you make the mistake of overpromising your services. For example, if you're a contractor, you might tell a client that you can get a certain job done in a specific amount of time — but you inadvertently don't allow yourself enough time to finish the job by the deadline. This could lead to a lawsuit, which will require an investment of your time and your money. Any experienced business attorney can caution you against making mistakes of this nature and give you tips on setting realistic deadlines with your clients.