By choosing to open and run a business, you are accepting an element of risk. Like anything else, you can identify potential risks, assess their likelihood of occurring, and mitigate them.
Today, we will identify potential risks you will face and how to mitigate them.
Though there are numerous ways to achieve this, we will stress the importance of choosing the contract to protect you.
Dealing with Third-Party Vendors
Third-party vendors are unique because they appear to exist outside your scope of control. Despite the systems and processes you have established in your business, you will still have to deal with other entities.
You may even rely on these relationships because they could provide you with the raw goods and materials needed to create a product.
Secondly, third-party vendors typically set their own conditions. In other words, they will likely have a contract they want you to sign.
The easy solution is to have a business law attorney examine the contract. Typically, these outline:
What goods and services will be provided
How will they be delivered?
When will they be delivered?
How will you pay them?
How and when the business arrangement will end
Consequences for failing to meet the terms
Contracts for Employees
Contracts are especially important when it comes to outlining the relationship that exists between you and your employees. An employee’s contract should include:
How much are they going to be compensated?
When they are expected to work (i.e., their hours)
How much paid time off (PTO) and vacation time are they entitled to
This is also a prime opportunity to ensure employees understand the company’s policies. This can include everything from your dress code to your stance on harassment and discrimination. Though we have written about this previously, don’t underestimate the value of an employee handbook.
You cannot enforce a standard unless the employee knows what it is. Give them the chance to read it and ask questions before they are asked to sign it. You may need to incorporate compliance training at designated intervals, but the employee handbook serves as the foundation. It can expressly state that failure to follow the rules and regulations could lead to termination.
Minimize Your Risk With the Legal Department Solutions
Regardless of which industry you are in, the attorneys at the Legal Department Solutions will help you minimize your risks and achieve your goals. Contact us to schedule a consultation today. We can assist you with creating contracts while providing client-focused advice.