If there was only one tip I could give to business owners that will definitely reduce later problems, disputes and lawsuits, it would be to get every business deal and arrangement you strike IN WRITING.

Memories fade and different people attach different interpretations to business arrangements.  It is a fact of business that most plan never come out the way you expect and there are plenty of surprises along the way.  You do not want to add to this uncertainty by having no written evidence of what was agreed upon with the people you do business with.

If you survey the cases that business litigators have, you will see that many of them could have been avoided by having a written contract to outline the relationship between the disputing parties.

Also, if you survey experienced entrepreneurs, most will be able to tell you of a story where the failure to get something in writing costed them money, stress and headaches. .  all of which could have been avoided by having a proper written document.

A written contract not only will benefit you and others by properly reflecting a business deal, but you can also include other legal type provisions to protect you from being sued later or protect you from harm that could be caused by the other party.

In the business world, the written contract is the fundamental basis for everything you do that makes you money. It is also the basis for determining the value of your business.  Everything is in the documents.  Think about this when you are building your business.

Filed under: Contracts

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