Essential Steps to Take When Facing Legal Issues in Your Business

Ideally, legal issues would be prevented through measured, proactive action. However, even the most diligent business owners or leaders can find themselves facing a serious legal issue.

Some of the most common legal issues involving small and medium-sized businesses include contract disputes, intellectual property issues, employment law compliance, and regulatory problems.

How to Handle Legal Problems in Your Small or Mid-Sized Business

When a legal issue does occur, some business owners find themselves at a loss of what to do next. Understandably, the situation can be overwhelming and confusing, but breaking things down into steps can help. The following are key steps to take if your company is facing a legal dispute or problem:

• Prioritize documentation – When you are notified of a legal issue, one of your first steps should be to collect and preserve all relevant documentation. This may include emails, contracts, financial records, and any other type of written communication that could be relevant to the case.

• Use open-ended questions to gather information – Use open-ended questions to encourage individuals to share as much information as possible when you are talking to witnesses or other parties involved in the case. This enables you to get the full story and better understand the situation.

• Understand the applicable laws – You will want to spend some time researching the applicable laws. This will help you to better understand your rights and obligations, as well as the options available to you.

• Be impartial and fact-based – Businesses that have made a habit of consistent, predictable, and lawful behavior are usually in a much better position when dealing with legal issues. However, unexpected problems can still occur. If your company does find itself in the midst of a legal battle, it is important to be as impartial and objective as possible. Remember that facts are king in the courtroom, so make sure that you have a solid understanding of the facts of your case before taking any further action.

• Maintain confidentiality – Do not share information about your legal case with anyone who does not need to know. This includes friends, family members, and even business associates. Avoid discussing the case or involving individuals who do not need to be involved.



• Work with qualified legal counsel – Of course, one of the most important steps you can take when facing a legal issue is to seek out qualified legal counsel. An experienced business lawyer can help you navigate the legal system, understand your rights and obligations, and develop a strategic plan to protect your interests.

Outsourced General Counsel for Businesses



If you do not have a full-time attorney, consider building a relationship with an outsourced general counsel that you can rely on to help you with legal issues as they arise.

Choose an outsourced general counsel who works with businesses as a part of their team. This will enable you to take proactive measures to prevent disputes and have a skilled legal advocate in your corner if unavoidable legal disputes or problems do arise.