4 Things That Could Cause a Lawsuit for New Business Owners
4 Things That Could Cause a Lawsuit for New Business Owners
As a new business owner, you want to keep a positive and optimistic mindset. On the other hand, you’ve also got to exercise an abundance of caution. There’s a lot that can go wrong in running any type of business, and proprietors often don’t realize the full scope of their risk exposure. Here are a few potential lawsuit worries that business owners need to be aware of.1. Marketing MisstepsMarketing is essential to a new enterprise’s growth track, but you need to go about it with care. Make sure that all of your materials are completely original. Using another business’ intellectual property could give it a cause of action against you. Avoid infringing on trademarks, using other websites' exact language, or appropriating images that you don't have the rights to.Likewise, you need to be mindful of misrepresentations in your outreach and engagement strategies. Making big promises or product claims that you can’t back up could violate your state’s consumer protection laws. Seemingly simple misstatements or misrepresentations can put businesses in the position of having to pay regulatory fines or comply with an injunctive order. Steer clear of the tech tactics in outreach initiatives that can easily run afoul of state law such as using caller ID spoofing or deploying invasive tracking programs.2. Hiring and Managing StaffNew business owners typically haven’t hired or managed staff before, so it’s no surprise that this is one area of small business management that can commonly lead to lawsuits. Familiarize yourself with key elements of federal and state employment law. Verify that your employee categorization practices as well as your wage and hour computations are in accordance with applicable guidelines.In the hiring process, you need to be wary about how you interact with candidates. Learn about the types of questions that you can’t ask during job interviews because they could be considered discriminatory. Treat all of your candidates with the same standards.3. Professional Licensing
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About Kevin Gardner
Kevin Gardner graduated with a BS in Computer Science and an MBA from UCLA. He works as a business consultant for InnovateBTS where he helps companies integrate technology to improve performance. He shares his knowledge and expertise not only with his clients, but also with his fellow bloggers and readers.