Imagine: You’re an independent artist who earns an income on a project basis. You’re hired to complete a work of art. You spent hundreds of dollars on supplies, weeks in the planning phase, and months working on the piece. You’ve received partial payment and are expecting the final payment after completion.
Whatever your business, whatever your industry, you will work with others and the success of your business will depend on you forming relationships. At the outset, your business can have a single owner or multiple owners. If you are a part of an ownership team, the details of the ownership must be written and agreed upon by every member of the team. Each person should sign this agreement. This protects each member of the team in case of disagreements, disputes, or dissolution of the team. One of the most common responses we hear when asking about team structure is “he’s my brother, there’s nothing to worry about.” Although you love your brother/mother/best friend/husband who doubles as your business partner, you and every individual involved has his/her own interests. Each of you need to be protected individually.
The next step is hiring. Whether it’s a part or full-time employee or simply contracting services (paying someone to build a website, for example) you want to ensure that the terms of the arrangement are clearly spelled out. Companies you hire may already have standard agreements that they ask their clients sign. Make sure you read the agreement before you sign it and thoroughly understand all the terms outlined in the agreement. The most easily avoidable mistake anyone can make is not reading and understanding an agreement before signing it. If a company you work with does not have an agreement, you can and should have them sign an agreement.
Do you need help creating an agreement between your business partners?
Do you have questions about an agreement a company is asking you to sign?
Do you need help devising a strategy around building your team?
Contact Clark Law today to discuss how we can help.