Subject: 5 Reasons Businesses are sued
If a business is around long enough it will be sued, it is a cost of doing business.
However, I find there are (at least) 5 major and avoidable reasons why businesses get sued. They are listed below in no particular order:
1. Failure to pay bills-You are running a business and you have expenses. Pay your bills! If you don’t pay your bills why would you expect anyone to pay you.
2. Failure to get professional advice-Do not try and do it on your own. Hire a lawyer, an accountant, and anyone else your business requires. Remember, you don’t know what you don’t know. Pay an expense now to save a much larger expense later.
3. Failure to monitor/bad hire-You have employees and they are a representation of your business. Don’t hire your spouse’s brother just to give him a job. Don’t hire the pretty girl with no experience. Hire qualified candidates who can act professionally. Have an extensive handbook that outlines how you want your employees to act. Make sure they are being managed by you directly or by a professional manager.
4. Cutting Corners-Buying the cheapest materials, not doing background checks, and relying on the unverified work of others. These are all common ways that lawsuits are started. So, take the time and run your business right.
5. Trusting the wrong people-I have mentioned this many time in the past. When running a business, trust should not be involved. Do business by signing contracts. When applicable, get your money up front. Don’t trust a business partner who says “we don’t need lawyers.”
Doing business the right way significantly lowers your chances of being sued.
Thank you for reading, my business is to protect your business!
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