The $85K Reason To NOT Be A Business Ostrich

Rise Up In Business

In business, unforeseen challenges can arise at any moment and in my years working in dispute resolution, most of what I saw in the courtroom could have been avoided. With never ending to-do lists, getting legal documents in order is a task that often gets buried under a pile of other demands. Unfortunately, this neglect leaves businesses completely exposed without a leg to stand on.
Today, I’m sharing a real-life case study of one of my clients as a cautionary tale about the importance of proactive risk management. Unfortunately, this client discovered the costly consequences of overlooking her essential legal documents but with the right knowledge, you can avoid situations like hers, which are all too common.
In my client’s many years of experience as a sole trader in the interior design industry, she had never been involved in a legal dispute. She had a great reputation, was a fabulous operator and had put together a one-page service agreement herself, which seems to be common practice in the design industry.
Unfortunately, when one of her commercial clients became disgruntled, she discovered all too well how costly it can be not to have properly tailored client service agreements. She was threatened by legal action, seeking damages well in excess of $85,000, and the harsh reality of her unpreparedness came crashing down.
As the situation unravelled further, it became clear that the repercussions of neglected details and misaligned expectations were far-reaching. My client found herself exposed to a financial burden of $85,000 due to incomplete project tasks and non-returnable designer furniture. Had she come to me earlier, I would have advised her on exactly how to protect her business, and this scenario would have had a completely different outcome.
Unfortunately, this client had to learn the hard way, but I hope her $85K wake-up call serves as a poignant reminder to you that ignorance is not bliss when it comes to protecting your business. By proactively addressing risks, fortifying agreements, and seeking informed counsel, you can be fully equipped to navigate any challenges that arise, knowing that your business and your assets are protected.
When it comes to your legal documents, don’t bury your head in the sand. You may not have encountered a legal dispute yet, but if and when you do, you won’t ever regret taking the time to make sure that your legal documents are in order.

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