Drama and Misunderstandings with Human Beings Lead to Lawsuits.

Lawsuits and the threat of legal action will impact your ability to grow the business and your bottom line.

Legal Issues Take Your Eyes off the Business and Your Focus is Derailed because:

• Instead of Forward Thinking, You are now Backward Thinking
• You will Spend time in Meetings to Handle Lawsuit, Not Meetings on Business
• Correspondence will be Distracting
• Customer Service Decreases as a Priority
• Current Employees get Pulled Away from Job Duties to help with the Legal Issues

Legal Issues Steal Your Time and Emotional Energy Because:

• It Will Last 2-5 Years
• Your Emotional Well Being is Stressed
• Your Leadership Ability will be Limited
• It Causes a Financial Strain on the Cash Flow
• It’s Easy to Make Mistakes with the Mental Stress of the Legal Issue

Legal Issues Create Uncertainty of the Future of the Business Due to:

• Instability Fulfilling Orders or Services
• Confidence as Owner is Up and Down
• Only Concerned with Protecting a Minimal Value
• Decreases Credibility to Get Loans
• Growth is Stalled

 Money Is Required to Cover Legal Costs:

• Cash to Pay Severance for Employees or an Early Buyout of Business Partner
• Utilizing Insurance which May or May Not Cover Expenses
• Cash for Attorney Fee’s
• Cash for Plaintiff Damages or a Settlement Amount

Legal Issues are Embarassing and may Damage your Reputation with:

• Loyalty and Morale of Employees
• Loyalty of Customers and Clients
• Loyalty of Peers
• Family

Civility is Always Good for Business and Reduces Legal Issues with:

• Business Partners
• Family Members
• Employees
• Independent Contractors
• Customers or Patients
• Other Third Parties

Documentation and Civility is Key to Prove the Actions Taken to Protect the Business

If you end up in court then be prepared to back up your words and actions with the right documentation.

Documentation Includes Registering the Business as a Legal Entity and then Using the Right Contracts and Forms for the Business

• Register as an LLC or an S Corporation
• Understand the maintenance requirements of the LLC or S Corporation
• Seek advice from a Business Attorney versus AI or Online search
• Hire a Business Attorney to prepare Plain Language Agreements
• Typical Agreements Include: Operating Agreement, Shareholder Agreement, Client Service Agreements and Website Terms, Contractor and Employee Agreements.
• Forms to document business decisions like Written Consents

 Verbal Conversations Need to be Backed up with any of the following:

• Email or other messaging application the business uses
• Consent Forms
• Online Review
• Formalize verbal conversation with a Contract

 Don’t be Rude, Be an Example of Handling Yourself with Civility

• Introduce People
• Call People Back
• Reply to Emails
• Focus on Speaker
• Follow Through on Promises

Systems will Offer Liability Protection and Increase How Much Your Company is Worth 

Create systems that make sense to your business and keep the systems simple or you risk making a mistake that will cost you with legal action.

A System for Employees and Contractors Forces Everyone to be Treated the Same and Reduces Complaints 

• Hiring
• Onboarding
• Evaluating
• Training
• Separation

A System for Operational Compliance Forces You to Review Whether the Current Operations Accurately Reflects How Things Are Going Today

• Tracking Financials
• Tracking Leads, Sales, Referrals, etc.
• Maintaining Legal Entities
• Managing Active Contracts
• Emergency Preparedness Readiness

Buyers Buy Systems because if the Business Continues to Run without You that Increases the Value of the Business 

• Buyers Don’t Buy Messes
• Valuations Value What a Buyer is Willing to Pay
• Do I Really Need a Letter of Intent? Non-Disclosure Agreements.
• Don’t be Shocked by Attorney Fees
• Buyers Want to See You Have your Documents and Processes In Order.

Are YOU the Business Owner Getting In Your Own Way of Time to Focus on What You Enjoy About the Business?   

Evaluating your leadership and management skills will allow you to face reality of what you need to stop putting out fires and instead sleep at night because you have a strategic compliance plan.

Perform an In-House Audit and Reflect On:

• Business Owner Leadership Skills
• Expectations and whether a Mentor, Mastermind or Networking Group would be Helpful
• Audit Your Story as a Business Owner
• Understand How Your Numbers Tell the Truth

Perform a Business Health Check Up By Asking:

• Why do Employees Leave and Why?
• How Do I Show Up with Other Business Professionals?
• Are My Actions Reflecting How Appreciation Counts with People?
• Can I say “Bring It On” if a Lawsuit is Threatened?
• What’s the Story Going Forward?