If you are in the process of launching a new business, you have many exciting things to consider and goals to accomplish.
You may not be thinking of a possible downside. Here are three types of business disputes that could adversely affect your new company and how you can prepare for them.
Employees and partners
A common type of argument that arises in everyday business is a partnership dispute. This often revolves around leadership issues, financial problems or the direction of the company. You might also experience a dispute with employees. For example, complaints about working conditions, accusations of discrimination or salary disagreement could arise.
Contracts
Breach of contract is a problem that can occur with partners, with suppliers or between your business and another. Contracts are binding, and the parties have a duty to uphold the terms. Violating those terms or failing to act appropriately can lead to the breach, which may require litigation.
Insurance protection
In order to protect yourself and your business, consider insurance options. In addition to a worker’s compensation policy, you might look into Directors and Officers Insurance, Employment Practices Liability Insurance or a Commercial General Liability policy. Most policies will reimburse the costs of having to resolve a lawsuit.
Professional relationship
While you may not need an attorney on staff at your new company, establishing a relationship with a law firm will help you in many ways. An advocate you can call on for guidance provides another layer of protection if and when you face a dispute with a partner or employee or run into a dispute over a breach of contract.