Business law is a challenge for all entrepreneurs. You never know when a competitor might sue you, an employee might give you legal trouble, or a client might take issue with something that your company does. But the good news is that with the right planning and precautions, you can significantly reduce your risk of ending up in court.
Hire a Contract Attorney
If you have any doubt about a contract, you should hire an attorney to look it over. You can also hire an attorney to negotiate a contract when you’re in the beginning stages of a business relationship. This step is especially important if the contract is very complex or you’re unsure if the other party will live up to his or her end of the deal. Contracts are the foundation of business. They can be used for a wide variety of business relationships, from outsourcing providers to joint venture partners. A solid contract can save you money and time, but a bad one can do just the opposite.
Protect Your Intellectual Property
Protecting your brand and intellectual property is another great way to keep your business out of legal trouble. If you skip this step, a competitor could not only steal your ideas but also sue you if you use them yourself. You can register your company name and other branding materials as trademarks, which will give you some legal protection against competitors using your branding without permission. You can also register for patent protection for any inventions that you have created. A patent will give you the right to stop competitors from making and selling your inventions.
Adhere to Solid Employee Practices
Employee relations is one of the most important areas of your legal risk assessment. For example, if one of your employees gets hurt and files a workers’ compensation claim, that could cost you thousands of dollars. And if someone files a wrongful termination suit against you, you could face significant financial liability. This is why you should have a clear employee handbook that outlines policies, expectations, and procedures. It’s also important that you respect your employees’ rights while also ensuring that your employees are respecting other people’s rights.
Keep in mind that business law issues don’t just arise out of nowhere. They can be avoided if you recognize the signs of trouble and put the right processes in place. By taking the right precautions early on, you can keep your company out of court and establish trust among the people that you work with.