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Franklin Legal Issues Blog

What to avoid when buying a business

Buying a business instead of starting one from scratch can save you many headaches. However, buying a business still has its challenges. If you are considering this kind of investment, you will want to do your research carefully and be sure to avoid the common mistakes others have made when buying businesses.

According to a recent Forbes article, the following are five of the most common mistakes people make when buying a business:

  • Assuming that finding a high-potential business for sale is a part-time job.
  • Buying a business without understanding the motivation and emotions of the seller.
  • Not understanding why the business generates profit.
  • Failing to completely research the business.
  • Overestimating the value of the business.

Considerations to make when founding a business

Business ownership is a dream for many enterprising individuals. Opening the doors of your own startup to serve your community is a singular feeling of accomplishment. Before you unlock the front doors, put a down payment on a building or even write your business plan, however, there are some key considerations to make regarding your business.

The quickest way for a promising enterprise to fail is to rush into the process without a well-constructed plan. You need to know what type of business entity your venture will be. You need to know how it will be structured, plan your tax strategies, be prepared for business and commercial transactions and many more factors.

How to recognize unfair competition in business

Running your own business presents many challenges. After creating a unique product or service, you must produce it, market it, sell it, and compete with other businesses. Some companies will try anything to crush the competition. You may wonder how to know if a competitor’s acts have crossed the line from hyper competitive to illegal.

Construction contractors caught up in lawsuit

Guardrails line our highways to help us stay safe. In a crash they expected to perform in specific ways that absorb the impact and prevent injuries. To do so, they have to be manufactured and installed properly.

Some recent deaths here in Tennessee have resulted in a lawsuit claiming that a particular kind of guardrail did not perform correctly. The contractors who installed them have been caught up in the lawsuit and need representation. This case is an example of the kind of potential liability that construction firms take on and how they can defend themselves.

How contractors can prevent fraud accusations

The world of construction frequently relies on word-of-mouth referrals. Your contracting company’s reputation can either catapult your business to new opportunities or financial ruin. Even if you haven’t committed fraud, news of an accusation can travel fast throughout the industry.

Therefore, contractors must plan ahead to protect their business from allegations of fraud. The Tennessee Department of Transportation (TDOT) lists several warning signs of construction fraud. Mitigating these risks through responsible business practices can shield you from complicated legal disputes and keep your work flowing.

The bad boy of the construction industry

One of the risks that most construction projects have involves getting paid. It’s a fact of life that we all want to get paid for the work we perform. But what happens when someone doesn’t pay? The resulting situation causes a domino effect of sorts. The owner can’t or won’t pay, which means the general contractor then can’t pay their sub-contractors.

The bad boy mentioned in the headline is the pay-if-paid clause that is often written into construction contracts. What this clause does is shift the risk from the general contractor to the subcontractor. For example, if the owner of the project lost their construction financing and the contractor wasn’t paid, they could legally refuse to pay the sub-contractors for their work.

Why should you work with a registered agent?

When you started your business you may have known about the requirement limited liability companies and corporations have of working with a registered agent.

You may not have known the reasons for this requirement - and how it ultimately benefits your business.

Study: New condo developments lead the way for construction defect claims

Developers, contractors, subcontractors and others in the construction industry may be well aware that any new construction or remodeling project may eventually lead to some form of construction defect claim. As the size of a project increases, the cost of litigation can also quickly rise. Large-scale developments, condominium projects and other multi-functional properties bring different economies of scale to bear in any potential litigation.

A recent study looked into claims of construction deficiencies and concluded the majority of disputes occur related to the construction of new condominium projects as compared to townhome associations and single family homes, according to Builder News. Obviously, condominium associations often have more pooled resources than the buyer of a single family home. However, the research, conducted by the Community Associations Institute, did not address the increased resources that condo groups may have to pursue a construction defect claim.

Contact

Robertson Law Group
1896 General George Patton, Suite 600
Franklin, TN 37067

Phone: 615-656-1729
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