1. Litigation can Prove Fatal

Moser Baer sued one of its suppliers REC group when the going was not so great. The company lost the case and had to come to an expensive settlement.

Litigation is a horrible way to resolve disputes. One, it is very expensive and two, it takes away your mental energy. While you are in litigation win or lose, your company will suffer.

It is your responsibility to make sure that you do not ask people to do work that your company can not pay for. If the company does not have the money to pay wages and taxes, then shut down before your employees do the work and you mount up company debt that you can be held liable for.

An entrepreneur should look for a number of available alternative legal methods and procedures to resolve a dispute. These alternatives generally speed up the resolution of disputes without the need for formal process of litigation.