SCORE Small Business Blog

Legal: Get Everything in Writing
3 Comments

Save Time & Money with a Written Agreement

One of the first steps in creating a company and getting all of the business ideas in place is to have your written business plan and to have any agreements or partnerships put into a written document.

A known fact is that people only hear 20% of what is said, so in daily life there are misunderstandings. Most can be dealt with easily, but sometimes misunderstandings can be critical in a business.

An example was in my own business. I brought a partner in promising a small percentage of the business based on performance. A written document was never in place just a verbal conversation. This employee was caught embezzling money from the company and we fired him. The employee went to a labor lawyer and the case went to court and we were forced to give him what we promised. A written document would have kept this case out of court and would have saved us thousands of dollars in legal fees.

The critical aspect of any business relationship is to get everything in writing. Agreements are needed for employees, partners, services, purchases and sales.

Most business disputes arise because there was no written agreement or contract. Always have open clear communication with a follow up written agreement so that there are no questions and if there are they can be addressed.

Unfortunately, we learn from mistakes we have made and to share this one simple mistake can save you and your business thousands of dollars and save a lot of aggravation and stress in the future.

Please share stories of how a written contract has saved you money in your business.

Julie BranderBusiness Mentor, SCORE New Haven
Julie has been a SCORE volunteer since 1997. She has 20 years of experience in business, starting a manufacturing, wholesale and retail jewelry company. After selling her business, she dedicated herself to helping other entrepreneurs start and expand their business.
www.scorenewhaven.com | @juliebrander | More from Julie

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Discussion (3) Comment


  1. MJB's OfficeVisitor

    This so true! It also helps define Client – Business Provider relationship with respect to communication and expectations of each party. We are a Business offering the expertise the Client lacks and has requested, not their Employee.


  2. marcusVisitor

    taking about the introduction of social media in your business , I will say here that it is very thoughtful to introduce social media to your business. This is to say the more your audience, the more your profit


  3. marcusVisitor

    the question whether it is right to introduce social media in business in my opinion i will it is right to introduce social media in your business as it exposes your business to a wider spectrum thereby increasing business gains. This is to say the more your audience, the more your profit.

 

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