How Can Your Small Business Reduce The Risk Of Litigation?
The cost of a bad business practice is something that is quite hard to establish. On the one hand, it can cause you to lose quite a bit of money over the course of time but this is just the tip of the iceberg. When left unchecked, it might just be the matter of time when a business misconduct leads to a litigation, which elevates the gravity of this problem to a whole new level. That being said, there are several ways in which your small business can reduce the risk of litigation.
1. Written contracts
The first thing you need to keep in mind is the importance of written contracts and the way in which they work. A verbal contract may seem romantic and honorable, yet, it’s not worth the paper it’s written on. Therefore, you need to ask yourself what’s the point of committing to an agreement that isn’t legally binding. Before signing a contract, make sure to read everything, including the fine print in order to avoid agreeing to something that could damage your company in the long run. Finally, when composing a contract, keep in mind that if there’s an ambiguity in the wording or legal terminology, the court always rules in favor of the party that didn’t make the contract.
2. Check who you’re working with
Another thing to keep in mind is the fact that some people simply seem more inclined towards making a lawsuit than others. Luckily, in 2018, everything we do stays online, which makes it easy to check if your current client has a history of lawsuits behind them. Think about it, if a business or an individual you’re dealing with has sued their three previous partners, you shouldn’t act surprised once you yourself become a target of such a suit, as well. All in all, checking who you’re working with is just one of the safeguards that you can’t afford to ignore.
3. Prepare for this inevitability
Even with all the effort invested in avoiding the litigation, you need to understand that this might become inevitable at one point. Sure, by doing everything just right, the risk of this will become minimal, yet, it won’t be inexistent. One of the most common mistakes that businesses faced with litigation make is believing that just because they’re innocent, they will be absolved, which is not necessarily true.
In order to be ready for this, you need to contact litigation support services and ask what is it exactly that they can do for you. Furthermore, while evidence gathering might be their responsibility, it is sometimes worth your while to try this out on your own. Keep in mind, however, that this might also result in you tampering with evidence, which is something that is best to avoid.
4. Proactivity is the key
Finally, you need to understand that it’s much easier to quell a dispute while it’s in its infancy than to let it get blown out of proportion. Think about it, small arguments occur every day, yet, if you let things run their course, such issues could quickly get emotional and soon both sides might find themselves at a loss. As soon as such a thing occurs you should look for a skilled mediator and a lawyer and ask for the optimal course of action that can resolve this unpleasant situation. In other words, while avoiding disputes altogether may seem as more effective, learning how to resolve them in time is definitely a more consistent and reliable method.
At the end of the day, while it is impossible to make your business 100 percent litigation-proof, with the above-listed four methods you can make it much more litigation-resistant. To make the long story short, it’s not your job to ensure that your business never gets sued (such a thing is impossible to achieve). All you have to do is reduce the risk of such a thing and do all that’s in your power not to allow such a lawsuit to become too expensive.