3 Strategies to Reduce Litigation Risk for Small Businesses

Sometimes the to-do list that comes with running your Minnesota business seems both endless and ever-growing. You have things you need to do every day, every week, monthly, and annually — and that doesn’t even take into account the stuff that pops up out of nowhere.

Few businesses have “get in a lawsuit” on that list. There’s no way to guarantee litigation won’t find its way onto your to-dos, but there are ways to reduce the risk of it popping up.

1. Invest in Clear and Effective Contracts

It’s easy to figure all contracts are basically the same, and that you can just grab one off the internet or keep reusing that same from the days when MySpace was still a thing. But assuming that all contracts are the same can put you at risk of future legal disputes. While several online tools may claim to offer the types of contracts you need, their generic templates may not fit the specifics of your business or the particulars of the business relationship you’re trying to forge — and that could leave you vulnerable to potential disagreements or challenges. Instead, take some time to work with a knowledgeable business attorney who can ask you about your business, about that deal you’re making and what you want out of it, and then review or draft contracts to address your specific needs and flag any ambiguous, confusing or irrelevant language before it becomes a problem. Investing in effective contracts now can reduce the likelihood of a costly legal battle down the road.

2. Organize Important Documents

Your business has documents. Probably lots of documents — some on paper, some on hard drives, some in the cloud. Do you know where they are? If you needed documents to prove your rights in a legal fight, could you find them?

The sooner you can implement an effective organizational system, the better prepared you and your business will be for a potential dispute. For instance, if a customer or other party brings a claim against you, having easy access to the documents that support your position can reduce the likelihood of the dispute escalating into litigation. Additionally, your organizational system will make the evidence preparation and discovery process smoother if it turns out litigation can’t be avoided.

3. Create a Relationship With a Trusted Business Attorney

Many businesses do not work with attorneys unless they’re facing a stressful litigation case. However, taking the time to build a relationship with a trusted business attorney before you find yourself in a lawsuit can reduce stress and allow you to feel more confident about whatever the future may bring. Have your attorney look over your business contracts or call them up with a simple question once in a while—nurturing your professional relationship will help you feel protected even if a legal dispute eventually arises.


Discuss your business goals with a dedicated Minneapolis business attorney by calling Rubric Legal LLC today at (612) 465-0074.

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