Are Your Contracts Protecting Your Business?

Often times, when a business owner comes to us for advice, it is over a specific problem that they are experiencing. They may want to terminate an employee, buy out their partner or make other changes within their business structure.  They come to us with questions on how this change will affect their business.  After a lengthy consultation, our attorneys usually tell them great news!  The issue that they perceive as a problem is not a big problem.  However, their largest problem lies in their contracts, or lack thereof.

When running small businesses, entrepreneurs enter into many contracts.  They have specific contracts with customers, vendors, partners and even employees.  Often times, business owners who consult with us don’t realize how poorly written those contracts are and how they can expose these businesses to costly litigation if a disagreement arises.  During our initial consultations, we usually find out that our client is operating without contracts, or is using contracts that are printed up off of free legal websites.  Obviously, operating without a contract can be dangerous, but most entrepreneurs believe that using a free or low cost contract off of the internet can save them money.  Unfortunately, these basic contracts can often do more harm than good when a dispute occurs.

Another excuse for not having professionally prepared contracts that we often hear in our conference room is, “I’ve been doing business for 20 years, and I’ve never been sued before.” Unfortunately, there is a first time for everything.  It is our hope that our clients never get sued, but it is our job as your law firm to protect your business from these types of threats.

An easy way to understand why strong contracts are important for your business is to compare contracts to something everyone does understand, like Hurricane Shutters. With Hurricane Season quickly approaching, everyone in Florida understands the need for Hurricane Shutters to protect their home and the precious people inside of their home from impending storms.  If you have lived in Florida for any length of time, you have seen the damage that a Hurricane can do.  You know that while shutters are costly, the protection that they offer in the rare case of a storm is well worth the expense.  Each year, many people relocate to Naples from other states.  They have never experienced a hurricane or witnessed the destruction they can cause first hand.  So, when they are given their first estimate for storm shutters, they are shocked. After the first storm passes by and bends a few branches back, and these new Floridians see a few pool screens blow in, the Storm Shutter companies get a deluge of phone calls. When people see that their lives and the lives of their loved ones and their homes can be destroyed if not protected, they will line up to pay for protection.

When considering hiring a qualified attorney to review and write contracts for your business, the concept is no different. You may never have experienced the destructive storm of litigation, but that does not mean that you are immune.  Your business provides the income that supports your home and your family. It can be destroyed in litigation and can be protected by having the right attorney review and write the contracts that govern your business.  

If you own a small business, contact Blount Law for a free consultation today.

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Written by blountlaw