In these tough economic times, it is even more important to protect a business from losses stemming from legal issues. Shauna Brennan, Esq., with Outside General Counsel (http://www.outsidegeneralcounsel.com), says "in this rapidly changing global economic climate, it is imperative that you protect your business and assets. The No. 1 rule in contract negotiations is that business is always good with a good person and never good with a bad person."
Here are five legal "land mines" that Brennan advises companies to watch out for:
- Personal liability. Business owners can protect themselves from it by forming a legal entity.
- Failure to protect intellectual property such as copyright, patents and trade secrets.
- Failure to forumulate an exit strategy. It is important to have one in place to buy out an owner, admit new owners or merge or sell the business. A failure to plan is a plan to fail.
- Nonexistent or inadequate contracts. They can cause loss of time, money and assets.
- Saying the wrong thing in negotiations. One mistake can cost a business a lot. Protect from this by using legal counsel. Words are money.