In a two week time span the same thing happened.
I was asked about creating a business entity. I would love to create the entity for them, but the truth is that insurance is more important and you are better off by putting the money you will pay to create a business entity towards insurance.
Don’t believe me?
I will share one of the experiences. A dog walker contacted me and I listed three companies that provide insurance. Where money is an issue, insurance is a better investment unless you plan on selling your business in the very near future or have the extra money to put towards a business entity.
Did the dog walker listen?
A dog got away from one of the handlers and was hit by a car, but scampered off and has not been seen as of yet.
If the dog is never found then sorry dog lovers, a dog is considered personal property and the dog walker will be liable for the cost of the dog only. If the dog is found and is injured, this could be a problem with the cost of the veterinarian bills which may exceed the value of the dog.
Would a contract have helped?
Possibly as it would have given the amount to which the dog walkers are liable, limiting exposure.
Would the business entity have helped?
Not at all. The idea is that a business entity protects personal assets, but the business entity or the individuals involved will have to make some sort of payout, and had there been insurance, then the insurance company would have made payment.
Remember, insurance and business law go hand in hand.
It is summer vacation time! This may involve an airline, a hotel, a rental car and dealings with service businesses all to make your vacation a success.
But, things can go wrong as I discovered in Turkey when our airline cancelled their flight and we were left at the mercy of chaotic, disorganized Turkish airport.
Thankfully, back home and safe and sound (after a harrowing taxi cab ride at 90 miles per hour going down one way streets the wrong way with a driver who did not speak English). However, there are repercussions, expenses that I incurred and I want to be put back to the place I would have been in if the trip had gone smoothly.
What to do? Just like I advise in business- keep records, receipts to prove what happened to you. Write it all down and make notations so that you know what you have. This is your evidence. As I have mentioned before most cases are lost because there is not enough evidence to prove what has happened to you.
Start making phone calls, sending emails and writing letters. Your letters and emails should be direct with what happened to you and what you are looking for in compensation.
This is a process of persistence and patience, but I am sure it will all work out.
True North Business Consulting provides legal services and mediation. For more information contact us today!
Kerri Salls of the Exit This Way Radio Show interviewed Cynthia Pasciuto of True North
Business Consulting. The podcast can be found here with lots of valuable advice and an
engaging conversation that you do not want to miss!
I was recently was interviewed by Dr. Georgianna Donadio of the National Institute of Whole Health (NIWH). NIWH provides credentialed individuals with educational programs.
Our conversation was about starting a business and included legal, marketing and management information in a short 20 minute segment. To listen go here.
I recently gave a presentation at the Women’s Innovative Network. It was an amazing, attentive audience of entrepreneurs. My talk was based on 10 ideas that can help your business. I believe my last one is probably the most important one.
Do you need a lawyer?
As a lawyer, you would assume that I would say a wholehearted, YES! But, instead what I suggest is you collect as much information as you can before contacting an attorney.
You are the person who knows the most about your profession. If you need more information, then I always suggest connecting to your professional association, whether that is local or national. They will be a great source to you to help your business.
When should I contact an attorney?
If you need a contract or agreement created, then you should contact an attorney, but with the information that you are providing, then it will be a shorter phone call or meeting. This saves you money, but you have also educated yourself about your business.
I also suggest getting a lawyer involved if you are taking part in a negotiation. Again, a short conversation can help you manage the situation, get a reality check and put you on winning road.
If there is a disagreement, then I always advocate mediation, but mediation with an attorney mediator can make a difference in a business conflict.
Lastly, any legal complaints or issues with governmental authorities do need legal intervention. Many times I have seen people ignore paperwork or wait until the last minute. If you are being sued, then you need to immediately hire an attorney.
In my legal work I come across some interesting dilemmas with clients. The issue that is the most challenging is understanding the client’s scope of practice. Many professionals are licensed. In Massachusetts the Division of Professional Licensure (DPL) is an agency within the Office of Consumer Affairs and Business Regulation. The DPL oversees 31 boards of registration, which license and regulate more than 370,000 individuals and businesses to practice some 50 trades and professions in Massachusetts. If you are licensed, then you need to stay within what you were trained or educated to do. For example, you cannot be a home inspector and then do mold remediation.
This happens frequently when people want to change their profession, but find it difficult to make the educational commitment (whether it is cost or time). Instead they find something “close,” which they can do on the weekends or online. It sounds like a great idea.
It’s not. The simple reason is a liability issue arises. I recently learned about a health coach doing nutrition counseling. In Massachusetts dietitians and nutritionists are licensed and will be reimbursed by insurance companies. A health coach may provide information, but it will not be covered by insurance. Other states have other rules, and in Florida the health coach is being sued because nutrition and supplement information is not what a health coach should be doing in that state, only licensed registered dieticians are allowed.
Be careful of licensing issues and staying within your scope of practice. Know the rules in your state. If there is no licensing, then a professional association in your field should be able to help provide guidance.
“You need insurance.”
I say this to all my clients, which is surprising because you may not know that the legal profession and insurance profession are often at odds with each other. Each profession believes that they are the only solution for a business. As a licensed insurance advisor and attorney I look at both and can tell you that both legal documents and insurance coverage are needed.
If you are a service business with an office (can be a home office, too), then you need a legal contract that explains to your client your services, your fees, how you get paid and providing protection in case something goes wrong. However, an agreement can only go so far.
What if something goes wrong?
What if your client trips or slips in the snow or ice at your location. What legal document is going to protect you?
A property insurance product will provide you with peace of mind protection. You can also get insurance that provides protection for mistakes you may make while conducting your profession.
Remember to review what you currently have, and give True North Business Consulting to make sure that your business is protected legally and you have the right insurance products.
January 6, 2014
A snowstorm is a good reason to stay in and I can always find something to do. This time though I caught back to back episodes of the Property Brothers. If you have not seen this show on HGTV then you are missing out on Jonathan and Drew, twins that help find and remodel homes (in Canada). In each episode there is doubt by the buyers that the house can be remodeled to the way they want it—they cannot see what Jonathan sees.
It is the same with mediation. Unless you have been involved in a mediation, then it is difficult to understand and see what is going on. Most people are familiar with courtroom dramas and judges making a decision. Most cases settle using mediation or negotiation where you are part of the decision, have more of a say and can usually keep the business relationship intact.
For the new year why not try a new perspective? Think about using mediation for your disputes or before entering a contract negotiate and get negotiation coaching from True North Business Consulting. I understand that you know your business, but I frequently see that people do not know the legalities of their business. Take the time to take a new look and avoid problems later. I also offer a UDEMY class for those who want more information on alternative dispute resolution, which is the opposite of litigation.
It is that time of year again when shopping becomes important on a personal level. Black Friday heralds the time period that retail stores run in the black instead of the red. If you are a service business how does this affect you?
If you do not offer gift certificates, then if you offer a wellness service, coaching service or consulting service you may want to consider doing so. Send out an email to your clients to remind them there is still time for them to make the purchase. For the gift certificate itself, think about cardstock for a nice presentation with an envelope to match. In addition, keep track of what you sell and respect Massachusetts laws that allow for a 7 year expiration date.
You may be thinking how you have gotten great deals on Groupon and Living Social. Offering discounts with these companies can help your business, but remember you are entering a contract. This should be reviewed by an attorney so you understand your responsibilities. You want to make sure there is a shorter expiration date on any of your offerings and if it is not used, then the amount can be applied to another service (just not at a discounted rate). With Groupon the hope is that you will keep the client, but there is a low retention rate since many Groupon and Living Social shoppers are looking for the next, best deal.
True North Business Consulting does not offer gift certificates, but we do have books for Health & Wellness Professionals and Contractors along with a DVD program that make great gifts!
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For those unfamiliar with Alternative Dispute Resolution, or ADR and want to know more about it so that you can use it in your business, then I have created a course with Udemy (an academy of you). The first 50 people receive $10 off, that is half price, but it is only for a limited time so take advantage NOW to learn about using the processes negotiation, mediation and arbitration in an hour. Use code 10OFFADR at UDEMY.
Many small business owners have a home office. This can be very convenient, limiting travel and expenses like rent. When it comes to accounting, I am sure there are ways where a portion of the space is a possible expense to your business, but there are legal ramifications that you should consider.
First, if you are working from your apartment where you are a tenant, then you need to make sure that having a business on the premises is allowed. Many leases do not allow you to work from home. From the landlord’s point of view this may be due to the increase in traffic or that you may be storing goods on the premises. Plus, you may be need services like additional cable lines that the landlord was not planning on.
What about if you own a condo? This time is may be the condominium association that could have rules about a business on the premises. But, what if your business is just online and you do not have people coming by? It may not make a difference according to your condo documents and the board.
If you are a homeowner, then your concern is advertising and keeping your liability at a minimum. If you want to place a sign outside, then you need to make sure with the city or town that you are allowed to do so. In addition, if you have anyone visit your residence please make sure that it is safe-especially clean walkways.
In all of these cases, you do need to register with the town to tell them you are doing business there. Think about buying insurance for your protection plus reviewing leases and condo documents.
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