Own a Business? Don’t let Panic Lead to these 3 Mistakes

hidden dog.jpgPeople who own a business have a lot invested in their company, from their own money to countless hours spent away from their families. Having so much on the line can put you on edge when someone or something threatens your investment.

However, while it can be natural to panic in these types of situations, it is crucial for business owners to stay calm and take the time to examine their legal options and next steps. Acting rashly often leads to regrettable decisions.

  1. Selling the business prematurely: Running a business is stressful, and it may not take much to push a frustrated owner past his or her breaking point. Under these circumstances, a person might decide they just want out and decide to sell the business. However, as this Entrepreneur.com article notes, selling a business out of panic or frustration can lead to financial losses and other consequences.
  2. Firing employees: In at-will employment relationships, an employer can generally fire someone for any or no reason at all. However, if you are angry at an employee for filing a report with OSHA, or if you are facing legal action because an employee claims he or she was the victim of discrimination, don’t lash out. Firing someone in retaliation for engaging in protected activities can be grounds for legal claims.
  3. Threatening legal action or contract cancellation: Professional relationships are difficult to manage, especially if they become adversarial. Rather than make threats or statements that you won’t fulfill agreed-upon terms, take a step back to assess your legal options. In many cases, the laws and terms of a contract may dictate what you can and cannot do.

Being scared or overextended as a business owner can be an upsetting experience. There is a lot on the line and a lot of people who may be affected by your decisions.

Instead of acting on impulse, business owners in Minnesota should instead thoughtfully assess their options. With consideration and the guidance of an experienced attorney, it can be easier to find effective solutions that don’t disrupt the business.