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When it comes to running a business successfully, there is a lot more that you need to manage apart from the regular operations. Legal protection often takes a backseat but it is as important as any other aspect because a lawsuit can bring major expenses. Needless to say, it can affect business continuity and cause reputational damage as well. As an entrepreneur, you need to brush up your legal knowledge and understand these potential risks so that you can address them before any major issue brews up. Let us list the ones that you need to be watchful about.
Although keeping employee relationships on informal terms sounds good, it isn’t the best advice for an entrepreneur. Proper employee agreements are essential; right from the day you onboard people. They should include every single detail, from rights and responsibilities, non-disclosure clauses, wages, workers’ compensation, and treatment of disputes, if they arise in the future. If your business is growing, you may want to reassess or renegotiate the existing agreements.
Intellectual property protection
Companies often tend to be less serious about protecting their intellectual property and trade secrets, but this is the last thing you should do. You wouldn’t want your competitors to take your competitive advantage because that’s what intellectual property and trade secrets are all about. It makes sense to take the right legal measures to protect these, whether it is a secret recipe or a software application.
Personal injury lawsuits
Another legal issue that you may overlook is coverage for personal injury claims against your business. There is always a risk of having one filed by your customers who are injured for different reasons, ranging from defective products, slip and fall accidents, and other mishaps on your premises. The expert personal injury attorneys of Custy Law Firm who represent such victims against businesses recommend that organizations should implement requisite safety measures to avoid these incidents in the first place. Taking general liability insurance is a good idea because it offers coverage for compensation claims as and when they arise.
Client and vendor agreements
When you run a small business, you may skim over the terms with clients and agreements. But the stakes get bigger as your company grows in size. It is a good idea to have a good look at your client and vendor agreements and empower them with the right clauses to prevent disputes and hassles later down the road. Proper written agreements also reduce the risks of fraud and embezzlement by employees as the company grows
Property and leases
Another factor that every entrepreneur needs to bear in mind is the agreements related to commercial property and leases. Businesses may need to move into bigger offices as a part of their scaling initiatives. But there is always a risk that things wouldn’t work and you may want to get out of the lease contract. So it is important to thoroughly examine the multi-year agreements properly before signing them and ensure that they have exit clauses.
Awareness is the key when it comes to steering clear of legal issues in the long run. No matter how big or small your business is, you should pay due to attention to these concerns and take the relevant measures right from the start.