When you run a business, even a small start-up, there is a not insignificant chance that you could be hit with a lawsuit at some point. If and when that does happen, it’s easy to panic and feel overwhelmed by the situation, but that won’t help –here are a few things that will:
Hiring a Competent Lawyer
The first thing you should do is hire a lawyer who is experienced in business law. Don’t skimp on hiring the right lawyer – it could mean the difference between successfully defending the suit and your business being dragged down.
Invest in eDiscovery Solutions
When you’re hit with a lawsuit, there’s a good chance you’ll need to collect a lot of electronic data to help you fight your claim and comply with legal requests. Good ediscovery solutions make that a whole lot easier by enabling you to quickly gather what you need with extremely efficient software. This could mean the difference between a loss and a win in many cases.
Read Up on Lawsuits
If you have no legal training, you probably know very little about how lawsuits actually work. Most of us, thanks to TV and common sense, have an idea of how lawsuits go down and more often than not, our ideas are way off the mark. For example, often it is much better to settle out of court, even if you know you did nothing wrong than it is to go through the legal system and become bankrupt – life isn’t always fair, and lawsuits certainly aren’t. So, arm yourself with as much knowledge as you can, so you’ll always make the right decisions and do what is best for your business, even if it hurts.
Seek Support
Fighting a lawsuit is tough, which is why it’s really important you seek the support of your friends and family, as well as a good lawyer. You’ll feel a whole lot better if you have good people to talk about the problem with.
Start Saving
If your business doesn’t already have an emergency fund, now is the time to start building one by as many means necessary. So, cut down on those non-essential business expenditures and start savings if you want to be prepared for any costs you may be compelled by law to pay.
Stay Calm and Determined
When you’re fighting a lawsuit, people will try to strong-arm you into doing things and making decisions you don’t like. When this happens, it’s important to stay calm, but determined. If you can avoid lashing out or being pressured into decisions, you’ll stand a much better chance of getting an outcome you can live with.
Rebuild Your Business
There’s no denying that lawsuits can ruin your business’ image, but it doesn’t have to, and if it does, it doesn’t have to stay that way. So, instead of getting disheartened and giving up, get back to it. Rebuild your business and your reputation, work even harder, improve your practices, and you will live to fight another day.