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Business Law
Startups and Business Organization
Every business has a legal form and specific legal consequences for those who operate it. The choice of an appropriate legal form for your business, whether for a new enterprise or an existing one will determine more than just how much you pay in taxes. Before that choice is made, you must first focus on developing a clear understanding of your current situation. The importance of this cannot be overstated. Without a comprehensive understanding of your strengths and weaknesses, skills and capabilities, chances for success in business are greatly diminished and the full potential of your business will most likely not be realized. Next you must have and develop a goal. Remember, if you aim at nothing you will certainly hit it. Be as clear and complete in your goal as possible and you will maximize the chances of achieving it. Once you know 1) where you are, and; 2) where you want to go, the choice of the best form for your business can be made.
If you need help getting focused call and schedule a free, up to 30 minute consultation.
Contracts
A contract is an agreement between two or more persons for a specific purpose. Before entering into a contract you must first know exactly what you want. Next, if you haven’t already, get to know the other person. After that you may decide not to contract with him or her at all.
To have a valid contract there must be a “meeting of the minds” between the contracting parties. The contract is the agreement reached at that meeting. The best contracts are clear, unambiguous and set forth comprehensively the object to be accomplished, those responsible for making it happen and how, where and when it is to be done. Most business contracts are between someone who wants something and someone who is willing to supply it under certain terms. Both parties must set out what they want and when they want it. Without a mutual understanding of the objects of the contract, the duties of the parties to the contract, the intended rewards and possible penalties for reaching, or failing to timely reach the goals, it is foolish to proceed and both parties are likely to be dissatisfied with the outcome. A good contract is the best way to avoid misunderstandings between honest businesspeople. Know the other party. Don’t do business with dishonest people. Period.
If you need help with a contract call and get it before you sign anything.
Trade Issues
The ways that a person can do business are limited only by the imagination. Certain types of businesses, however, have conventions that must be observed. Different rules and laws apply under different circumstances even within specific types of businesses. The rules vary not only with the type and amount of goods and services exchanged, but also with the types of people exchanging them and their levels of skill. Know your industry and keep up with the changes. Know what is permissible and what is not before you attempt creative approaches that can expose you and your business to liability and loss.
If you have questions about rules, regulations and trade usage, call for an appointment.
Negotiation
To be in business is to negotiate. Constantly. Learn how to do it well or be at a constant disadvantage. Successful negotiations are built upon preparation and knowledge. Have a goal and a strategy to achieve it. Know what works and what doesn’t and use that knowledge to build your negotiation plan. Different situations require different tactics. Know as much as you can about the person with whom you are negotiating and his or her goals. Different kinds of people react differently to the same proposal.
Learn how to listen. Very few people know how to do it well. It is a skill that takes practice to develop. Learn when and how to keep silent and be open to new ideas. Observe too the non-verbal messages being sent by others. How something is said may be more important than the words spoken. When the statement is made during negotiation may change its meaning and significance. Make constant notes of the status of negotiations and check your progress against your plan. Don’t refuse to abandon a negotiation strategy that is no longer working, but most importantly, never forget that the ability to walk away from the deal is your greatest strength.
Schedule an appointment to develop a successful negotiation plan or hire a professional to negotiate for you..
Debts and Collections
All businesses, even those operated not for profit, eventually develop money problems. Staying ahead of money problems means more than being able to pay your bills today. Getting paid on time is the goal of every contract and the assumption underlying every business plan. Plan for the contingency of not getting paid and you will better be able to avoid emergencies and bankruptcy. Establish lines of credit to meet your obligations for both the short and longer terms as necessary.
Know the parties with whom you are dealing and keep your knowledge current. Customers in financial trouble may be unable to pay as they have in the past and may require special terms and attention. Know how to ensure payment by structuring your transactions with security agreements and filing them properly to perfect your interest. If you need help collecting past due receivables, call.
Trade creditors in financial trouble may be unable to continue to extend you credit. Even if you have done an excellent job of managing your money the failure of others can constitute an emergency for you. Establish alternative sources. If you don’t have ready cash for the least expensive supplier you had better know where to get what you need elsewhere. If you need help dealing with a creditor, call.
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