As you prepare to open your business in Minnesota, you may have some anxiety about the threats that could cause failure. Sure, there's always that fear that your product or service will not catch on, or that competition will drive you out of business. There is high demand for your unique product, though, and you have a sound business plan and plenty of capital. But what about litigation?
Entrepreneur magazine notes that there are several steps you can take to prevent a lawsuit from destroying your company.
1. Written contracts
Agreements with business partners, vendors, clients and employees are the basis for your business, and any one of these could come back to haunt you if they do not set out the terms clearly. Oral contracts can turn into arguments that end up in court, but clearly written contracts can keep your agreements on track.
2. Intellectual property protection
Your unique product or service is the heart and soul of your company, so the threat of theft is real. Take legal steps to ensure that your trade secrets are protected, whether through patents or copyrights. To keep your employees from absconding with the information, include nondisclosure and noncompete clauses in your employee contracts.
3. Accurate recordkeeping
Mistakes on your accounts, payroll and taxes can quickly lead to audits and investigations. If numbers aren't your thing, consider hiring a professional service to take care of your books so a slip-up doesn't land you in court for fraud.
The information included here is general in nature and should not be interpreted as legal advice.