The First Timer’s Guide To Dealing With Business Litigation

As someone who may have just started running a business, the feeling of euphoria every time you make sales or make good deals with others can be very exhilarating. This is especially true if you’re a newcomer to the business scene and you’re hoping to build your connections. However, if you’re a first time entrepreneur, now might be the best time for you to learn on how to deal with business litigation.

According to the Small Business Association, a staggering 36 percent to 53 percent of small businesses in the United States are part of some form of legal dispute at any given year. In fact, almost all businesses in the country have been dealing or is currently dealing with a form of litigation. This doesn’t mean you should quit your company now, but rather accept that litigation is a normal possibility in the realm of business, and it might help if you anticipate what to expect when dealing with business litigation. Here’s a quick guide on what to remember:

  • Don’t skimp on research. As soon as you receive the notice for litigation and it’s something that counts as a legitimate concern, then immediately make sure you gather the documents necessary right away. Review just which part of their complaints merited litigation, and on your end try to check if there’s some way you could improve that to avoid litigation in the future. Compile and make copies of relevant documents for your reference as well, especially if you’re getting a lawyer.
  • Remember that litigation will have an impact to your company no matter what the choices are. The tricky part when it comes to business litigation is understanding that there are consequences for all actions you take here. If you opt for a settlement, there’s no guarantee that the money you will be receiving or you will be giving will be an “acceptable” amount. Meanwhile, risking a case in court not only gives you the opportunity to lose, but to also expose all your operations to the public. Both have their pros and cons, so be sure to assess these carefully.
  • Ask a lawyer for advice. Remember, it’s not recommended you take on a business litigation alone, and the various options and variables you have to review might be too overwhelming to overcome alone. Assessing your options and finding a legal professional that could help you review your documents and decide on a path can greatly help your needs. Their guidance can point you and your company in a direction that can be most sustainable for growth, or whichever is more practical for you.



Remember, when it comes to litigation, it can be something that is legitimately reason enough to feel nervous about, but not something you cannot overcome. Tackling business litigation with a cool head and proper composure can help you find better ways of dealing with business litigation. Remember the tips above and make sure you properly review your research with your lawyer in order to arrive at a decision that you and your company may have to take in order for a brighter tomorrow. Click here if you’re interested in knowing just what other legal aspects of business litigation should you study.