No matter how simple or complex your business, it will inevitably involve different relationships: relationships with your business partners, employees, clients, and so on. What do you need to keep in mind when maintaining these various relationships?
Unpredictability. Despite how successful a relationship may be in the beginning, it is nearly impossible to foresee what future challenges may arise. Imagine that you start your dream business, a successful construction company, but stop seeing eye to eye with your business partner stop: one day the partner informs you that the entire business belongs to them and withdraws all of its revenue. A client may claim that a home you built for them is deficient, refuse to pay you and files a lawsuit against you. A valuable employee may one day decide to join your largest competitor, leave you without notice and take your client list with them.
Every aspect of the above “business gone wrong” scenarios can be effectively prevented by having appropriate agreements in place. Depending on your business type and structure, there are legal documents that can ensure your business success and security. When starting a corporate business with other partners, an appropriate shareholders agreement and a corporate minute book are crucial instruments that allow you to prove your business ownership, decide on conflict resolution and ways to depart with a business partner amicably. A well-drafted Employment Agreement can protect you as an employer, set out mutual obligations and expectations in the employment relationship and regulate when and how an employee may be discharged. A Confidentiality Agreement that includes Non-Disclosure and Non-Solicitation clauses can protect your sensitive business information and prevent employees from misappropriating business clients. Services Agreement further allows you to manage your relationships with clients and protect yourself from liability: an appropriate agreement sets out the scope of your services, any warranties, waivers of liability, and much more.
Often business owners neglect the importance of having appropriate agreements in place. Working proactively and preventing business disasters works better than trying to put out fires after the fact. While the Buzaker Law Firm team is ready to assist you at any stage of your business development, we strongly recommend being proactive and protecting yourself and your business before it is too late. To book a consultation for any of your business needs, you can call 905-370-0484 or email at firstname.lastname@example.org.