As a business owner, you must be aware of the legal responsibilities that go along with it. So putting a lot of thought and effort into your legal agreements should be on your list of priorities. Because giving short attention to your agreements can cost you big time—and in more ways than one.
Using a legal document service to draft legal agreements for your business can be more tempting than hiring a lawyer. But do-it-yourself (DIY) agreements can put your company at risk. So consider these four ways that cutting corners with your contracts can put your business in peril.
1. Agreements Are The Foundation of Your Business
To protect your company’s most essential elements: your personal liability, personal and professional relationships, intellectual property, and trade secrets, business agreements are designed. They govern the rights and responsibilities of every party you do business with: clients, vendors, employees, and contractors.
Using great agreements and having an integrated agreement process shows that you care not only about the deal at hand but also the other party and your business. Having well-drafted, well-structured, and well-presented agreements demonstrates that you believe in yourself and the people you work with. It greatly strengthens your business and relationships at every level.
2. Presentation Is Important
If you rely on cheap DIY legal documents you download off the internet, you can make your company look amateurish, and you may put your company in legal jeopardy. If you don’t take the time to ensure your agreements are well prepared and properly presented, you risk losing out on lucrative deals that might otherwise be a sure thing. If your contracts are poor, you may also be careless with other aspects of your business. Indeed, your agreement’s quality reflects your business’s overall quality.
Given how essential contracts are for your business, you should work with a lawyer who understands the legal parts of the agreement and how to structure the agreement to build confidence in you and your services. Make sure you work with a lawyer who understands that your agreements—and their presentation—are a key part of your enrollment process. If not, you’ll likely leave loads of money and clients on the table.
3. Agreements Are Crucial To When Hiring People
When you hire someone, whether they’re an employee or an independent contractor (IC), you may find that the relationship doesn’t turn out as you hoped. The reasons for this are fairly obvious: either the individual fails to provide the services you thought they would provide, or they fail to live up to your expectations in some other way.
One of the highest expenses in your business, not just financially but in terms of time and energy, is the cost of team-member turnover. Changing your agreement process can ensure you are hiring the right people who will be with you for a long time and grow alongside you and your business.
Before you hire anyone, it’s vital to have an employment agreement in place. It doesn’t matter if the person is an independent contractor or an employee—every person you hire must sign an agreement before working with you because they’ll save you from significant losses down the road. You should be specific in your contract about your expectations for the relationship, establishing metrics for success and time frames for particular goals and objectives to be achieved. When you share those things, you are allowing them to clarify whether the expectations are clear and can be met.
In addition, you should always work with a lawyer who understands your needs and business style and can customize your agreements to suit your specific needs. Having well-considered agreements will help you make better hires because it forces you to be proactive, think through your expectations for the relationship ahead of time, and consider whether it will be a thrilling success or cause failure.
4. Keep An Eye On The Future
When using online legal documents to prepare a contract, you may think it’s less expensive than hiring a lawyer. However, the cost in terms of lost business can be high.
By taking the DIY approach, you not only risk missing out on lucrative business deals, but you could also pay tens of thousands of dollars in attorney’s fees and court costs to untangle a poorly drafted agreement. Or even worse, relying on DIY legal documents could cause you to go out of business entirely. Are you willing to risk losing your business just to save a few hundred dollars?
Never Do-It-Yourself
Your Family Business Lawyer® specializes in creating legal agreements for small businesses like yours. With their guidance and support, your agreements will be legally sound, and their clear, concise presentation will impress potential clients and make you stand out from the competition. Whether you need new agreements created or want to review ones you already have—even those drafted by another lawyer—contact your Family Business Lawyer™ today.
This article is a service of Greg Gordillo, Family Business Lawyer™. We offer a complete spectrum of legal services for businesses and can help you make the wisest choices on how to deal with your business throughout life and in the event of your death. We also offer a LIFT Start-Up Session™ or a LIFT Audit for an ongoing business, which includes a review of all the legal, financial, and tax systems you need for your business. Schedule your LIFT Session today!