Writing A Contract

Most small businesses accept the idea of a verbal contract, agreeing to terms that were said. If there is a problem, then they hope each side has perfect recall. More often than not, memories are faulty and the business relationship is broken.

When a verbal contract is not used, there is a written contract and the small business owner finds it overwhelming. Does not understand it, but signs it anyway because it is supposed to provide protection for both parties. Plus, the business owner wants the money the contract promises when he/she performs their service.

In legal coaching my first question is: What do you need to be protected against?

There are all sorts of risk from financial to physical. If you are afraid that if something goes wrong and you could lose everything, then you need to make sure you understand the damages section in the contract.

You need to make a list, in your own terminology from your own experience of what can happen. Can you afford to be paid at the completion of the project which may be a year or two years later? What if you are unable to deliver your product or service? What could happen that will stop you from completing the project?

Next you want to think about the client, since that is who is receiving your service. From their point of view what can happen? To answer this question you can use personal experience, and you may want to do some research. What have been problems that clients have had when using vendors in the same service? Using the internet you can see what the issues have been with that particular client, and then make sure to contract to avoid them from happening again. This is a great opportunity to hone your business.

Then my job is to help you understand how that can be added into a contract, and bring awareness so that you can complete contracts confidently. I can also point out if a contract does not minimize the risk, then there are other ways to protect yourself.
Contracts are a common occurrence in the business world, which you need to manage successfully.

Most businesses, in my experience, are unable to afford a lawyer for every contract they sign; they are basing decisions on their own expertise, which is not the law. Using services provided by TrueNorth Business Consulting can help you learn to make these decisions on an ongoing basis with confidence.