As a small business owner, you can’t afford disruption. Anything that slows down operations and harms your profits could prove detrimental to the overall success of your company. And there are so many things that could go wrong. You could lose customers, make a mistake on social media, or be subjected to a cybersecurity attack that wipes all of your data.
It is your responsibility to take precautionary measures to prevent these risks, and have a plan in place for when a crisis does occur. One of the worst disasters that can happen to your business is legal action. Perhaps a disgruntled employee sues you for breach of contract, or a client accuses you of misconduct. You could make a mistake with your accounts or a libelous comment on Twitter, and before you know it you’re wasting time and money defending yourself in a courtroom.
This is the last thing you want when you’re trying to grow your business, but fortunately, there are ways to avoid going down this route. To help you protect yourself, here are four ways you can steer clear of legal action.
Be careful
In the digital age, anything your business does or says will be subject to scrutiny. All it will take is one tweet from an employee or comment on your blog to unleash a frenzy online. You need to do what you can to protect your business’s image. This means creating a social media policy that provides guidelines for the content and style of messaging shared on your social media channels. You should avoid doing business with unsavory characters or organizations. If their unethical business practices are exposed to the media, your name will be inextricably linked to the fallout.
Protect your data
One of the most common reasons that companies face legal action is improper use of data. If you store vast quantities of customer information, you need to ensure you are remaining compliant. This means storing it securely and never sharing it across public networks. All your files and systems should be password-protected, and all your data backed up onto an external hard drive. You should alternate two or three different hard drives each day, and always keep one of them stored outside the office so it is safe in the event of a break-in or fire.
Take out insurance
It is absolutely crucial that any small business owner takes out liability insurance. This will protect you from legal action in almost any eventuality: if a customer slips and breaks a leg on your premises, or mitigating circumstances make it impossible for you to fulfill a contract. You will avoid paying huge court fees and can get your business back on track as soon as possible.
Obtain legal advice
Many businesses wait until they are already in trouble before enlisting the help of a lawyer, but it pays to be proactive. Obtaining legal counsel from a respected outfit such as Wyolaw Law Firm can help you avoid falling into traps when formulating contracts and will help to inform any major business decision you make.