As a small business owner, there is a lot you need to get done every day to keep your operations up and running. One of your priorities as a business owner is likely to protect your business from liability by forming contracts with other parties.
According to the Small Business Administration, small businesses make up 99.9% of businesses in the U.S., and many of these businesses also rely on contractual agreements to continue their operations. The following are some strategies to use to strengthen your business contracts and reduce the likelihood of disagreements with employees, suppliers and clients.
Put everything in writing
If you form an oral agreement with someone, this agreement will be difficult to enforce in court. For this reason, always put your business agreements in writing. Putting your contracts in writing can reduce disagreements and provide clarification about all included terms.
Keep the content simple
You do not need to make your business’ contracts complex for them to be effective. Organize your business’ contracts carefully and include simple, direct language that accurately identifies the roles and responsibilities of every applicable party.
Include options for dispute resolution
There is always a chance that something will go wrong during your contractual relationship with another party. For this reason, include stipulations regarding how you will work through disputes directly in your contracts.
If you forget to add something to a contract, you do not have to recreate the document. Instead, you can always create an addition to your contract to ensure it includes all the details required to protect your business.