Running a small business takes personal sacrifices of time, energy and money. The last thing a business owner wants to deal with is a lawsuit that can require even more of those precious sacrifices. Nevertheless, nearly half of all small business owners will face a lawsuit at some point, and it is possible for them to come through and land on their feet.
Perhaps the best defense is a good offense. Being prepared for the possibility that a client, vendor, employee or another may file a lawsuit has helped minimize the negative consequences for many entrepreneurs. This includes having appropriate insurance for one’s business and having access to skilled professional counsel before making decisions with legal implications, especially those involving employees and contracts.
In the event that someone files a lawsuit, the small business owner will want to do everything possible to keep the financial impact as minimal as possible. This may include attempting alternative dispute resolution methods, but it also involves following the advice of counsel who has experience in many aspects of business law. Being truthful and offering a full disclosure is usually a wise choice and may spare a business owner more serious issues in the future.
No two small business lawsuits are the same. Additionally, laws related to contracts, employees, intellectual property and other issues can be quite complex. However, a lawsuit does not have to devastate one’s business, and with experienced legal assistance, a small business owner can have every reason to look forward to continuing to pursue his or her passion.