“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? 

None.

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.

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!

The Business Guidebook for Contractors along with a new edition of The Business Guidebook for Health & Wellness Professionals are offered at Amazon in paperback and Kindle editions.  Both Business Guidebooks are filled with business information that is easy to understand and to follow with worksheets to show you the steps involved. We are also offering A Business Program for Health & Wellness Professionals on DVD!  All available on Amazon. FOR A LIMITED TIME ONLY! If you purchase through the links above then you will receive $5.00 OFF using the following code: ZP682PK9.

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.

I teach undergraduate students at a local university.  We just finished covering torts and negligence, which is always a fun subject as the students suddenly see the potential for lawsuits everywhere.  In fact, one assignment was to look for possible claims around campus.  I didn’t realize the campus was a death trap!

Torts are a civil wrong that leads to harm which results in legal liability.  Some examples of torts are defamation, copyright infringement and false imprisonment.  Negligence is within the study of torts and is based on the belief that there is a duty of care owed.  If there is a breach in that duty that caused injury, then people sue for negligence.  For example, supermarkets need to keep their floors clean, and when there is an issue need to mark it accordingly, if not then someone could slip and fall.

Negligence and tort claims can happen to anyone in a business. You need to be aware of the issues and then go about protecting you and your business with a combination of contracts, business entities and insurance. 

I eat too fast.  It is a horrible habit, which I am working on because I want to enjoy my meal, taste the flavor and ideally, not choke.  With business decisions many people have the same habit.  Say yes, sign the contract in a hurry.

Like food though, you want to be able to reap the rewards, and well, not choke.

My first question when reviewing a contract when there is ongoing payment involved is to ask, “What is your threshold?”

What is the amount of money you can comfortably risk? 

Ideally, the thought is that you want to take away more than your investment, but what if you lose that amount?  Set your marker—I believe in taking risks, but they should always be calculated.

Enjoy your food and enjoy your contracts.

Conflict resolution really does resolve conflicts.  After attending and presenting at the New England Chapter of the Conflict Resolution Association, I learned how so many companies are incorporating conflict resolution into their culture. 

In today’s environment of Yelp and Facebook, bad reviews can truly hurt a business and when your first line does not understand how to negotiate, then the customer will deal with the issue in their own way—online. 

It can be very expensive to fix an online reputation.  What to do instead?  Commit to conflict resolution.  Here are some tips:

1.      1. Be trained in collaborative negotiation.  You and your staff can benefit from this training- not only using it in person, but on the phone and via email too.   My friend had an issue with a restaurant in Florida.  She was treated rudely via email! So much so that she escalated the issue to report the manager. There was no need for this, and it could have been avoided with proper training.

2.     2. Know that there are forms of conflict resolution out there.  I read so many contracts that have a default of litigation or a judge versus jury decision.  Before going to court, think about mediation where you get an opportunity to make the decision.  I had a client who was convinced she was heading to court over a broken partnership, but I convinced them to try mediation.  It led to a satisfactory, quicker and less costly decision.

True North Business Consulting provides negotiation training and mediation.  For more information contact us today!

I will be participating in the New England Chapter of the Association Conflict Resolution regional conference in June along with Jessica Nagle Esq. discussing the Utilization of ADR in Medical Billing Disputes.  We are both excited to talk about a topic we are passionate about—namely Alternative Dispute Resolution.

For those unfamiliar with ADR, it is when conflicts are resolved in a method that does not involve litigation. I would say that all of you have signed an arbitration agreement—cellphones, software and credit card agreements all have arbitration clauses.  Many of you though may not be familiar with mediation. 

As a mediator, I can tell you that this should be a go to choice for small businesses and for any time there is a conflict where you are unable to negotiate a resolution.  A mediator serves as a facilitator.  Both sides get to tell their side of the conflict and really understand what the issues are to try to come to an agreement that is mutually beneficial.  I have seen relationships where both parties were angry, then at the end of mediation conclude with a written agreement and the parties walking away on better terms.

With mediation you can have a lawyer present or not, since most people feel comfortable discussing from their perspective what is the nature of the issue. If you do not come to an agreement with mediation, you can still go to court, but what was discussed in mediation cannot be used. 

If you are in Sturbridge June 14^th and 15^th, then you are welcome to attend the conference or if you would like more information in our proposal, please feel free to contact me.

A few times a year, usually when the seasons change I take the time to organize.  This time I was ruthless in my cleaning leading to bags of trash and donated clothing.  I then decided to do the same with my office.

I had certificates from completing mediation courses, collaborative law and as an e-learning instructor. I went to my local frame shop, purchased some frames and hung them up.  Because I have taken these courses I can put myself out as a professional- a mediator, a lawyer and educator.  This also means that as a professional I need to meet a standard of care that is above those who do not have the same knowledge.

This is why insurance is important.

If you are in the same circumstances where you are a professional, then you need to make sure that you have the right kind of liability insurance.  Once you have insurance you should also make sure that you acknowledge it in your contract with your clients. It lets them know that you are a true professional in your field.

If you work with someone else in a contractor or subcontractor relationship, then you need to make sure that they carry insurance, too.

Insurance and law go together.  Where one is not able to help you, the other can.

As a mediator I facilitate conversation and help people reach agreements.  I also see the same mistakes repeated and want to share how you can avoid disagreements and court in general.

1. Do no buy anything together unless you are married

You think you will be together forever and therefore want to buy that car or house together because with both of your incomes you can afford it.  However, time passes and you do not get engaged and married as you once thought.  In fact, you break-up. Now what?

Recently, I had a case where a former boyfriend and girlfriend bought a house together. Two years later they were no longer together and the mortgage was in arrears, but the girlfriend wanted to stay.  She was willing to buy him out, but to come up with a number to buy him out was an issue.  He had put work into the house, helped update it along with paying part of the mortgage and down payment.

In the end they came to an agreement, but it was made difficult because if they had been married then probate laws would have applied.  Instead they had to create their own agreement where one person still felt as if they didn’t get enough money and the other person was taking on significant debt.

2.Pay your rent and recurring bills

You may think that the landlord is the bad guy and rich for that matter too.  However, most have mortgages on their property and have to pay each month too.  So when a tenant does not pay their rent this is an issue. Then the tenant continues to stay without paying rent, and the eviction process gets started, then court.  In the end months have passed without rent.  Most landlords know they will not get the back rent, and would rather come up with an agreement where the nonpaying tenant leaves right away so they can clean the apartment and rent it to a paying tenant.

I had another case where a couple was living together, and then one left.  They had always been late with the rent, and then the person left with the apartment stopped paying.  They were given 3 months to find a new place, and did not even look and then came to court to beg for another week.  Needless to say the landlord was not in a giving mood and the original execution remained.

If you have a recurring bill, then the same rule applies.  You should keep an eye on your budget and make sure you have enough money.  Job loss and other hardships happen.  Try to save money so if something does happen you can pay your bills, and if not then try not to make the situation worse

3. Keep all receipts and get things in writing

I know I have said this repeatedly.  If you are trying to reach an agreement, but bring no proof, but the other party has documents, then who do you think will win?  Who deserves to win? It is the evidence, the documents; the receipts showing your side of the story that will help you come out on the winning side.  There is one caveat: pictures taken on your cellphone, iPad or smart phone need to be developed.

In a case about damage to property, the party with the property damage did not bring in estimates of the damages.  They couldn’t come to an agreement, because there was no number to work from.

You may believe these are uncommon stories.  They are not.  These cases involve what I would consider to be normal, average people.  Mediation is always an option to solve disagreements, but the disagreements may be avoided all together by being aware of the 3 most common mistakes.

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