While you might not want to think about lawsuits when starting a business, you need to keep the possibility in your mind from the start. Many businesses face them because they did not take enough precautions when setting up.
Literally, anyone you deal with could take legal action, and each will require you to put different protections in place. For example:
Your employees
Make clear contracts, learn the relevant labor laws and train your staff to respect these laws. Be they anti-discrimination laws or health and safety ones, it can soon become your problem when your workers do not follow them.
Your customers and suppliers
It only takes one supply chain issue to throw up a whole series of issues for many parties. And it only takes one of them to threaten to sue you to make running a business no fun at all.
Here’s an example. Imagine you do catering for weddings. If the supplier of your ingredients fails you, you could be unable to comply with your contract with your customers.
Saying your supplier let you down won’t help you escape the wrath of a bride whose big day you upset. A clause that allows you to replace the unavailable ingredient with a suitable alternative might. A clause in the contract with your supplier that they must inform you of unavailability a week in advance might allow you to source from elsewhere and provide the meal you agreed on.
The authorities
Learn the requirements regarding everything from zoning to wastewater disposal, get the appropriate license and permits and comply with what you are meant to. Breaches could soon prove costly.
It’s a lot to take on when you are just starting up, but skimping on the research could cause massive problems later. Consider legal help to guide you.