It isn’t hard to see why so many business leaders are doubling as lawyers in their “free time.” They are, at the very least, acquiring major talent and big names to support their business. For better or worse, the American culture is one that seeks compensation with eerie regularity. It may be expected. It may even be deserved, and there are many examples where the latter is absolutely true. But, as deserved or expected the compensation is, business leaders need to be practical, fair, and protected against abuse in this system.
It is why business leaders use top lawyers as recommended by the Small Business CEO blog. A small business can take a serious hit in a lawsuit. These lawsuits can cripple a small business for the foreseeable future, especially as they try to compete in a tough industry against big competition. What are business leaders to do?
A CEO can go far if he or she understands a few key factors about the person building a lawsuit against them. These can be divided into fault, motivation, and resources. Fault is the most functional, but it should not just be seen as “who is at fault in the situation.” It should also be seen as how the other party perceives fault. What are they seeing and thinking? Do they think they have a case from their perception of fault?
Motivation and Resources
The above leads into what is motivating the other party. Is it just money? Is it a sense of justice? The answers to these questions will invariably help strengthen a small business CEO against a case that is being unfairly represented. Small business CEOs will also want to take an assessment of the resources available on both ends. This may help shed some light on the potential of the case, including the timeframe, the size of compensation, and the attention needed to it.
An individual and their lawyer will shape a small business to appear as the “bad guy.” It seems to be a perception that is common in business law. Small business CEO’s need to understand these dynamics and protect themselves and their business accordingly.