What Are the Most Common Risks When Owning a Business?

During unconventional times in the middle of a global pandemic, many people have made big job and lifestyle changes. For some, this has meant opening new businesses and becoming entrepreneurs. Others are still assessing their current and future career paths, goals, and dreams. If you’ve always wondered what it might be like to run your own business, there are a few things you might want to consider before filing for that LLC or corporation status. For a closer look at a few common risks business owners take when opening businesses, read on.

Legal Issues and Lawsuits

One of the biggest worries business owners have is the legal responsibility they take on when they open their business premises to the public. If you’re considering opening a brick-and-mortar location, it’s important that you mitigate your risk by getting good public liability insurance to protect yourself and your business. In taking this simple step, you’ll put yourself in the position of being safer when it comes to problems around slips, falls, property damage, and more. While no business can ever fully protect itself from a bodily injury claim or other accident, knowing you’re insured will help give you peace of mind.

Employee Retention and Satisfaction

The same way you’ll want to protect yourself against legal action from customers or those who enter your business premises, you’ll also want to be sure you have a lawyer on hand who you can call when it comes to cases of disgruntled employees. Malliha Wilson, who’s dedicated her career toward working on legislation through the Supreme Court of Canada to ensure human rights in Ontario and surrounding areas, is someone who understands the sensitive issues that sometimes come with things like workplace discrimination, labour laws, and human rights in general. As a business owner, while you won’t be expected to have a handle on every law at the administrative level in government, it’s a good idea to know the laws in your area when it comes to workers’ rights and entitlements.

When considering opening a business, if you’re thinking of hiring staff, it’s a good idea to hire an attorney with experience, a law degree, and knowledge around complex litigation that can sometimes come with running a business. While the legal costs might not seem worth it now, having that connection ahead of time will be a relief if you get into a situation where a disgruntled employee takes issue with your business or operation practices. Even having a lawyer on hand to deal with general liability and workers’ compensation and to navigate your insurance policies is always a good idea. In fact, having a business attorney on retainer is a great way to mitigate your overall legal risks.

Bad Publicity

Like liability coverage, it’s a good idea to have a safety net around your business when it comes to marketing and public relations. Outsourcing a reputation management company or other digital marketing groups could be a great way to help decrease your risk when it comes to receiving bad press for your business. Like it or not, most businesses thrive or fail by the internet. Your positive reputation in the global market could depend on your reputation. Don’t make the mistake of leaving your brand at risk.

At the end of the day, worries about a personal injury lawsuit, complex litigation, or other legal issues that might come your way are not a reason to avoid opening a business. Instead, outsourcing legal work, hiring a lawyer for complicated legal questions, and doing your own research on laws that relate to your business are great ways to protect yourself and your hard work going forward. Best of luck to you in your business ventures ahead.

Related Articles

Back to top button