Running a small business may be something you dreamed of for a long time before it became a reality. There are many benefits to being a small business owner, including the ability to run your business on your own terms and set your own schedule.
However, as any small business owner in Florida knows, running a small business also comes with its fair share of challenges. One of your biggest worries might be getting sued by a client or someone else you do business with.
Find the right business structure
There are some smart steps you can take to reduce your chance of being sued. The way you structure your business can make a huge difference in your potential liability.
The easiest way to structure your business is as a sole proprietorship, but this exposes you to personal liability if you are sued. Incorporating your business means the business is the one who is liable, protecting your personal assets.
Do not make controversial statements
Be careful about the public image you project and who you do business with. It is best to stay away from making announcements or statements on controversial topics. You should also carefully consider the implications of marketing your products or services to specific portions of the population.
Stay neutral on topics and target your marketing campaigns toward everyone. This helps prevent damage to your business reputation that you may not be able to recover from.
Make smart investments
Know what to invest your money in. Technology and liability insurance are two things worth spending money on.
Many business lawsuits today are caused by data breaches that result in confidential data being released to the public or outside individuals. Invest in secure technology that protects your files and business records.
A good liability insurance policy can help reduce your liability in case of an event that is out of your control, such as a customer being injured while on your property.
Get answers to your questions
Finally, a lawsuit can cause permanent damage to your business. Consult an experienced professional on these or other topics if you still have questions or concerns.