The prudent small business owner should consider how they can minimize their potential liability when dealing with their customers or third parties. The small business owner does not have the benefit of in house legal counsel or high priced outside lawyers to protect its interests so it must be more vigilant when considering the risks it is facing on a daily basis.  The news media has reported that some of the largest Wall Street firms were forced out of business because they assumed too much risk in dealing with third parties. A small business must be just as careful that it does not put its future in jeopardy because of a single sale or transaction which has unforeseen and catastrophic consequences. Lawsuits and claims for “consequential damages” or “punitive damages” will demand many times the value of the transaction in which they occurred. The market risks inherent in starting and operating a small business weigh heavily against the small business owner. Therefore, they should structure their business relationships with suppliers and customers with an eye toward limiting risk from legal claims. Some of the important concerns that the small business should focus on to minimize its risks are discussed below. 

Negotiating a lease for an office, store or commercial space is a major step for any small business whether it is brand new or already in existence. The prudent small business owner will have first identified the amount of space the business needs for the immediate and long term, analyzed the logistics of the business and how its location affects its operations, consulted with realtors about the current rental market rates and visited the available sites. If there are competing sites, the business owner has the option of negotiating with multiple landlords to obtain the best deal.

“It’s a model, that means it’s not real.”  S.T. Rao