Let’s be real, no matter how successful, every business has experienced their share of surprises. While many factors can attribute to a company’s down fall, it’s not easy to predict. Some of these issues may seem farfetched but they tend to catch company owners off guard the most.
- Disruption in Cash Flow – This mayappear to be a no
brainer but still can be a problem. Though you may have many customers, it
doesn’t always mean customers are paying on time, or that something won’t break
and require immediate cash.
- Personal Matters – Many personal matters can bleed over into our business. Personal legal matters such as bankruptcy, debt collection, divorce or criminal record of a partner can affect the company considerably. Health issues such as Alzheimer’s Disease, drug addiction, incapacitation or disability of a partner can also have an impact.
- Business Lawsuits – Lawsuits can significantly impact on the profitability of a company. In short, litigation is expensive. These suits can be triggered by unintentional intellectual property infringement, product liability, personal injury, employment disputes, contract disputes, or partnership disputes.
- Scandals – Scandals are easiest to avoid when you and all who represent your company are being honest and up front when presenting your business. However, these events could be caused by anyone representing your company. Scandals can significantly damage your company’s reputation. As a result, customers may lose their trust in you or your product.
- Forces of Nature – Natural disasters are unpredictable. Even calm parts of the world could experience dangerous weather or disasters. It only has to happen once to strike a major blow to any business. Consider getting some sort of disaster insurance if it is available.
- Fraud – Fraud can happen even with the most loyal employees, partners, or customers, especially at the start of growing your business. No matter how much you may trust these people, one of them may still end up mishandling funds or stealing from your business outright.
Even for well informed, experienced entrepreneurs, it is impossible to prepare your business for every situation you may encounter. There will be situations beyond your control and/or put you and your business to the test.
Hiring an experienced business law attorney to incorporate comprehensive disaster protocols within your operating agreement can prepare you for most situations.
An experienced business litigation attorney can help mitigate the over-all impact, if you are experiencing such a disaster.
Contact us today for a FREE consultation.