A Perfect Example:

Partners in a business recently came to me.  They have been in business for 10 years and are in debt.  They do not know if they should continue.  They had created an S-Corporation, which means they created a separate legal entity with the Commonwealth of Massachusetts.  They did this to protect their personal assets.  However, they never created a partnership agreement, which would give them guidance on what to if they decided to split up. A contract of this kind should have been the first step.  Instead they are confused and do not know what to do.

Clients Are Impacted:

Whether the business continues with one person, the partners or is dissolved, there is going to be an impact with their clients.  They had not changed their client contract since they started their business.  There was some updating needed but their main issue was they cannot assign the contract to another business who may buy them.  This means that they have to honor each of the contracts, even though they may sell the business!

Mediation Can Help Them:

Are they heading for court? No.  They want a quick resolution, and most civil cases can take up to two years to get to litigation.  This is after a large investment of money, which neither can afford.  They also may not be happy with a judge or jury’s decision. Mediation provides an alternative where they can come up with their own solution, and still remain good friends.

When was the last time you updated your contracts? Are you involved in a dispute and it is heading to court?  True North Business Consulting can help you.

Need a place to start, then start with our free videos at:  You Tube Channel  or browse through this  blog  for helpful hints.

If you treat your contracts with vendors or clients in the same way that you treat your online ones, then you could eventually affect your livelihood. Here are five tips when reading over a contract:

1. Money- how and when will you be paid?
2. Time- how long is the contract for?
3. Talk- if you talked about it, then it needs to be in the contract or it doesn’t exist.
4. Risk- what happens if you do not perform or the other party to the contract doesn’t perform?
5. Where- if you have to go to court (and you should think about alternative dispute resolution) then what state will it be in?

As always, you should have contracts reviewed by an attorney. At True North Business Consulting we create contracts and review them to fit your business needs.

If you need advice on this type of situation, contact True North Business Consulting.

I don’t know many people who want to go to court so you would think that everyone would know about ADR. But, court offers you the option of having a public trial or what I call airing your dirty laundry. Some people want that public vindication, for a judge to decide your civil fate (ADR does not apply to criminal cases), and for the defendant to be punished or humiliated somehow.

That doesn’t happen with ADR. Most of the processes are about preserving relationships. Let’s look at Mediation, for example. Mediation uses a third party neutral or facilitator to help the parties communicate and come to their own resolution. That’s right- the mediator does not make the decision. It has been found that when parties, plaintiff and defendant, if we are using legal terms, can come to their own agreement then they are more likely to stick to that agreement.

Mediation is about people listening to each other, and understanding what is really going on. You really don’t know what is going on with someone until you can listen and talk to them. Court, because of certain rules, does not give you that opportunity. Litigation also does not allow for creativity- with mediation you can brainstorm all the possibilities and still come up with an agreement that works for you.

Think about ADR next time you have a conflict or dispute. True North Business Consulting provides mediation services along with negotiation coaching.

I believe in the collaborative approach where the parties prepare for the negotiation by thinking up options. If the other party does not want to try this style, then you can prepare on your own. You need to prepare because what I also see happening is that people do not bring any evidence that support their options.

Let me be blunt- you need proof. In a negotiation I would not believe another side’s idea is good because they told me so. I would believe it if I saw a chart or information on what someone else had done before (that had been successful). Take the time to do some research.

Let me give an example. You want to add a line of products to your office. The product representative contacts you and gives you general information to sign, but you are hesitant even though you really like the products.

1. Read over the cost.
2. What are the ordering procedures?
3. Find other people in the area who carry the products and talk to them. What kind of deal did they make?
4. Armed with this information you can now negotiate.

Without getting more information, you would have made a bad deal. By getting that information you can now support asking for a better deal.

True North provides negotiating coaching services so you can comfortably negotiate your way through any business deal.

The Integrative Business Program℠ consists of a number of courses that run for a length of -6 weeks each. Weekly online sessions are 1 hour in length and each course is taught by an expert in the topic.

Courses start in September. Sign up today for a free introductory webinar on Tuesday, August 30th- Jumpstart Your Business: Top Ten Things You Need to Know! Sign up for the free webinar at http://www.integrativebusinessstudies.com/jumpstart

The Institute of Integrative Business Studies℠, where holistic health and business practices meet, is sponsored by the Acupuncture & Oriental Medicine Association of Massachusetts and The National Institute of Whole Health.

More information at http://www.integrativebusinessstudies.com or
Contact: inquire@integrativebusinessstudies.com

Look before you step:
In Florida I stepped on a stinging bee/wasp. To this day I have no idea what insect family it was in, but I was enjoying the beach and the next thing I know my foot is on fire. An emergency room visit, an IV course of antibiotics along with having the stinger still in my foot for 12 days later is a reminder that you have to asses risk before going into a venture, and to have a plan in case something happens. In project management it is called Risk Management; there should always be a Plan B.

You have to think about marketing all the time:
Tennessee was having unusually hot, humid weather for June. In Nashville with my friends we went to Broadway. If you have never been to Nashville, this is where you can find country music being played. I was tired and decided to go back to the hotel, and a friend said she was ready to go back too. We walked and she pointed out a minor celebrity. She wanted to continue walking, but I wanted to go up to him. I pulled her with me, and we ended up having a fifteen minute conversation where he tried to convince us to join a Facebook campaign. It taught me that every conversation is a marketing opportunity, which is why True North always thinks about the marketing element when providing legal coaching.

Negotiate properly
In Ireland I forgot the key step in negotiations-sometimes a cultural translator is needed. I have been to Europe before, and considered Ireland a European country where they happen to speak English with an accent. No need to speak a foreign language. First, I did not always understand when people were speaking to me, and then I assumed that I could haggle and get a discount. In Ireland, the price set is the price set. Lesson learned. True North provides negotiation services, preparing you to enter your negotiations so that they are win/win.

Take the time to comment and there will be reply!

Insurance protection comes in many forms. First, when you are unable to legally contract away your risk, insurance is what fills in the gap. One the most important types of insurance is malpractice. Malpractice insurance provides coverage when you are working in your profession. Should one of your clients have an adverse reaction, then you do not have to pay out-of-pocket. You would have insurance coverage.

Some other the types of insurance you want to think about is property coverage—insuring what you use in your business in case of a loss. There is also liability coverage, separate from malpractice, which has to do with someone injuring themselves on your premises.

We can group together life, accident and health insurance since these are for yourself and not necessarily your business. Should something happen to you and you are the sole practitioner, then life insurance may be a product that can help your beneficiaries after you are gone. Also think about accident or disability insurance—if something happens to your hands, your legs, then how will you be able to work? How will that time off effect your business? Disability coverage could help. Lastly health insurance is good to look into and be informed about coverage and cost.

True North Business Consulting provides legal coaching and thinks about the impact of insurance on your business decisions.

Few months later you feel you are doing all the work while your so-called best friend breezes in and out whenever it is convenient. What are you to do?

You need a partnership agreement. When you create an agreement or contract together then you can decide:

• How many hours will you work?
• When will the store be opened?
• What if someone wants to leave the business?

Legal coaching can help you make these decisions and much more. With a partnership agreement you can be on the same page with your partner and run that successful business without the drama that is sure to happen without an agreement.

Contact True North Business Consulting today.

An example:
The simplest example of an independent contractor is the following: You are an acupuncturist, and you need electrical work done so you hire an electrician to do some work for you. As the acupuncturists you do not have the same skills as an electrician, you do not tell the electrician how to put in a new outlet.
The electrician charges you for the work he has performed when he has finished it using his tools.

You are probably asking- if it is so simple then why the confusion?

I believe it is due to taxes, a fear of unemployment and payroll taxes. Although I am not an accountant I am telling you there is nothing to fear. First, an employee is an expense and you can write off the payroll taxes as a business expense. Secondly, there are payroll services that can setup your payroll automatically, if you do not want to take the bookkeeping steps yourself.

So if you in the same line of work, control what the person does, give them tools, then you have hired an employee, not an independent contractor.

What’s there to gain?
Plenty! You will be complying with the law. I am aware that the IRS will make a determination if you do not know if you are an employee or independent contractor. However, the IRS is only used when a problem has arisen, for example an employee was marked as an independent contractor and now wants to collect unemployment.

But more than that – you will have someone who you can assign work to, those jobs that you do not have the time or skill for, like marketing or administrative work.

You will also be improving your profession by providing jobs in the that profession to show that it can lead to gainful employment.

If you want more information on this matter or sublease agreements then please contact TrueNorth Business Consulting.