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The day-to-day demands of a new company are stressful enough on their own. On top of developing the new skills needed for your venture, the regulations and laws around business ownership may be unfamiliar territory for you. Knowing the proper steps to take and pitfalls to watch out for when forming business contracts will save you legal trouble down the road. Today, Oclas Group offers some excellent tips and resources to get you started right.
What Business Contracts Are and Why They Are Important
A business contract is an official professional agreement between at least two parties, such as an employer and employee or a buyer and a seller. It details the expectations of both parties, the protections to each party in the event the other does not uphold their end of the arrangement and the services provided, and the price being paid. Contracts are legally binding, so seek professional advice when drawing them up for the first time.
These documents protect you and your company in a number of ways. They provide you with legal recourse against contractors who agree to do a job but fail to do so despite receiving payment. They protect your employees by outlining the conditions of their employment, and they keep you accountable to customers who have purchased your services. They also apply labels to your staff; depending on certain factors individuals may be classified as employees, contractors, or other titles, each with their own protections and obligations.
How They Are Made
There are a number of tools online to make presenting and altering contracts a breeze – including a PDF editor that you can use for free. Be sure to have a legal professional look over any contract or alterations you make yourself to insure the proper protections and arrangements are covered within. Make sure all parties involved understand and agree to the wording of the document.
All official documentation created for your organisation should be consistent, from your business name and contact information to your logo. Just as with contract creating tools, logo templates are available which allow you to make your own. Selectable icons, colours, and styles, as well as the ability to add your own text and images, will save creative and savvy proprietors the trouble of commissioning a logo..
While drawing up your contracts, it's vital to understand what financial state your business is in. Experts have said accounting software will help keep your business organised and on track. Having a good idea of what your organisation needs and can afford to spend is indispensable to creating a fair agreement that benefits all parties. Keeping accounting software updated and accurate will give you current insights into your firm's fiscal health.
How to Negotiate Contracts
It's not advisable to rush into signing a contract, regardless of which side of the table you're on. Work with the other party to reach the best agreement. Start with a sheet detailing each of your expectations, then work toward common ground. Enlist the help of a professional to mediate the creation of the agreement, and don't lose sight of the intended gains and protections of the contract.
It's easy to feel as if you need to be an expert before implementing contracts into your business arrangements. Using the right tools and resources will help you navigate these new challenges and prepare you for these processes in the future.
Oclas Group prides itself on the aspiration to ensure business value is realised for its clients through the wealth of experience and expertise gained across industries in the areas of business improvement and process optimisation. Please contact us at admin@oclasconsulting.com with any questions.
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