Common Business Law Issues That Can Hurt Your Small Business

As a small business owner, you have a lot to keep you busy. You deal with issues such as finding new clients, marketing your services and/or products and making sure your books balance properly. But of all the things that must be taken care of, the ones that stand head and shoulders above all others are legal considerations.

Operating within the parameters of the law should be the highest concern for any business, regardless of size. Unfortunately, many small businesses run afoul of legal trouble – often because business owners do not fully understand business law or may disregard it. Legal issues can come up at any time, catching businesses unaware and causing massive – sometimes irreparable – damage.

Some of these problems are typical mistakes many small businesses have encountered.

Take a look at some of these common legal issues and how you can avoid them.

  • Lack of strong written agreements. As much as we all would simply like to “shake on it” and leave it at that, the reality is all business agreements need to be put in writing. Without proper and verifiable documentation, agreements and deals become impossible to enforce – in effect, they become non-existent and you can be left with nothing to stand on. An ideal business contract should be in your favour, flexible and offer you plenty of protection in case things go awry.
  • Not having adequate legal help. Any growing business will need an established, experienced business attorney to represent them at some point. Without their specialised skills, your business will be at a severe disadvantage in issues such as employee negotiations, intellectual property rights and any litigation your company may face. It may seem unnecessary and costly to employ a business attorney, but their legal knowledge will be an invaluable asset that can save you a lot of money and hardship in the long run. With a wide range of commercial lawyers in Melbourne, you have plenty of options to explore.
  • Getting involved in discrimination and harassment cases. These legal hazards can easily cripple your business. Not only can they result in very costly legal proceedings, but they also draw a lot of media attention that will be bad for your company’s reputation. Ensure your human resources team is prepared to deal with any discrimination and harassment issues. Working proactively to promote a positive, professional work environment is the best way to head this issue off before it can gain any traction.
  • Unhappy customers. A large group of unsatisfied consumers can band together and do severe damage to your company with a class action lawsuit. Not only will this hit your business hard financially, but this will do massive damage to your brand and reputation – something you cannot afford to risk. This tends to spin out of faulty products or services, so providing your absolute best every time is key to keeping this problem at bay. Keep communication channels open for your customers and resolve any product or service problems as quickly and efficiently as possible.
  • Disgruntled employees. Mistreating the people who work for you can be a sure fire way to invite legal woes. Employees are protected by laws that must always be observed – even if their termination is justified. Should you need to let an employee go, make sure he or she signs properly drafted legal forms that make the terms of dismissal clear – otherwise, they can pursue legal action against you and your company.
  • Ignoring copyright and trademark laws. Nothing can be as disheartening as staking your business on a product, then finding out you infringed another company’s patent and face severe consequences for it. If you are launching a product, check for patents and copyrights to avoid this issue.

“An ounce of perspiration is worth a gallon of blood.”

– Dr Marc Dussault

0 Responses to “Common Business Law Issues That Can Hurt Your Small Business”


  • No Comments

Leave a Reply

Leave a Reply

Your email address will not be published. Required fields are marked *