New business owners have a lot to do when they first launch
their companies. This not only involves product launch, developing packaging,
setting up a website, and even arranging the necessary marketing and
advertising.
In addition to this, you may also have to employ staff and
ensure that your business meets all the legal requirements. Fortunately, the commercial litigation lawyers Melbourne locals rely on are waiting to assist you with
this.
Avoid Potential Litigation Issues
Another key aspect to include in your business planning
involves putting the right processes in place to avoid potential litigation.
Doing things the correct way will ensure that you dont waste time and money
being tied up in litigation when you have to deal with an issue down the line.
Our team of experts have compiled a list of tips that can go a long way toward
avoiding litigation.
1. Set Up Legal Contracts
If youre going to be employing staff, dealing with vendors,
and other contractors, its essential to draw up the necessary contracts. More
commonly referred to as service contracts, these outline the arrangements and
terms of your relationship with each professional.
For instance, an employee contract will specify working
hours, salary agreements, hours to be worked, as well as the rights of both
parties. Having these in place will ensure that your business is protected if
you have to deal with a disgruntled employee down the line.
2. Abide by Your Agreements
Its not enough to put contracts in place. As a business
owner, you need to ensure that everyone in your company abides by their part of
the contract, especially when theyre acting on behalf of your business.
Breach of contract is one of the leading causes of
commercial litigation, which makes it essential to abide by the legal requirements
in your various contracts. This includes simple issues such as adhering to
employee working hours and honouring promises to vendors and customers.
3. Set up an Admin System
No matter how small your business is, its essential to keep
the necessary records. Fortunately, this can easily be done by implementing the
necessary software to help store receipts, invoices, and contracts digitally.
Some documents and agreements may come in handy when you have to deal with a litigation
issue.
There are a few additional tips that will help you set up an
effective admin system to help keep your business and personal matters
separate:
- Avoid handshake deals: All agreements and contracts must
be in writing, reviewed by your lawyer and then signed by the relevant parties.
Each party must receive a copy of the contract.
- Have a separate email for your business: Keep work emails
organised in a system that makes it easy to find necessary emails.
- Digitise receipts and invoices: If your business makes use
of manual receipts and documentation, keep dated copies. Make digital copies of
these so that they can be easily found. Consider accounting software options to
help with organisation.
- Password protection: Ensure that access to your customers
files and personal information is password protected and not easily accessible.
Only authorised parties should have access to company information.
- Safe storage: If youre keeping manual documentation, be
sure to keep these safe and locked away. This will prevent any disgruntled
employees from removing contracts in an attempt to imply that documentation
didnt exist. Opt for digitisation where possible, you can also print out
copies when theyre needed.
4. Avoid Unethical Behaviour at all Costs
Weve all encountered companies or brands that dont deliver
what they promise. This includes inferior product quality, delayed deliveries,
hidden fees, and even unreasonable shipping costs. All of these issues can see
you or your business being dragged into litigation.
Protect your profits and your business reputation by
ensuring that your business only engages in ethical behaviour, no matter how
small or insignificant the transaction may seem. Test all processes and
turnaround times before making promises to customers and vendors.
5. Seek Legal Advice
A commercial lawyer should be part of your business from the
outset. Dont wait until theres an issue to involve a professional. The right
lawyer will help you ensure that all contracts and processes are legally compliant.
All contracts you draw up should be reviewed by your lawyer
to ensure validity and compliance. Be sure to discuss any issues with your
lawyer as soon as they arise, as this could help to facilitate a solution before
litigation becomes necessary.
Keep in mind that business and commercial litigation lawyers
have the necessary skills and experience to effectively assist you with any
potential issues. They will also help you to keep your business compliant,
allowing you to focus on making a profit.
Final Thoughts
Being stuck in a litigation process can be time-consuming
and costly. It also sees you spending the bulk of your time dealing with the issue
rather than focusing on growing your business. Liase with your commercial
litigation lawyer for the necessary contracts and practices to implement to
protect your new business. Youll be glad you did!
