How important is defensive planning for the small or mid-sized business or professional practice?
While lawsuit proofing is necessary for every individual, it is no less
important for small businesses and professional practices. They are more
vulnerable to lawsuits and creditor problems than individuals and need
their own brand of financial protection. Unfortunately, few business owners
go through the advanced planning necessary to blockade lawsuits and other
inevitable financial threats that can sink their business. Business start-ups
are the products of entrepreneurs, and entrepreneurs are fueled by optimism.
They journey into business happily envisioning only the upside, seldom
the downside. Because they are success-oriented, they ignore the possibility
of failure and overlook the most obvious precautions necessary to protect
themselves and their business when trouble strikes. Experienced businesspeople
are more realistic. They reduce risk. They defensively position their
enterprise as well as their personal assets because they know their business
will have battles and inevitable wars with creditors and litigants. The
well-fortified business always has the best chance to survive.