Avoiding litigation may be more than just common sense for up and coming businesses and established enterprises alike. However, many businesses do not take genuine steps to avoid this despite the nature of litigation in today’s business climate. It’s no secret that legal disputes can be costly and disruptive, so business owners must be aware of the obvious, as well as the innocuous things, that could lead to a lawsuit. With that, we offer several tips that can help businesses avoid lawsuits. 

Get things in writing – This is especially important regardless if you are a service based business or sell goods over the Internet. Customers should understand what they are purchasing, and what the company’s obligation is in fulfilling the relationship.

Have good communication with clients and customers – Chances are that dissatisfied customers or clients will resort to litigation if they have a good relationship with the company. Essentially, if there is room for empathy, reason and good communication, there may be a chance to dissolve tension and resolve the issue before lawyers are involved.

Pick your battles – The staying power of Kenny Rogers’ “The Gambler” is rooted in truth. You have to know when to hold ‘em and when to fold ‘em. When you are faced with a tough battle over a legal dispute, you may want to concede and fight another day.

Get help early – Companies get themselves in more trouble by neglecting to talk to an experienced business law attorney about their situation until it is too late. Getting a helpful opinion from legal counsel could lead to money being saved.

Source: SmartCompany.com “Nine steps to help businesses avoid litigation,” Ben Patrick, May 8, 2014