As a business owner, you conduct many tasks every day to keep your operations going and enhance your profitability. You may also rely on employees and suppliers to help you keep your operations moving forward.
There are 31.7 million small businesses in the U.S., according to the Small Business Administration, and many of these businesses rely on contracts to establish expectations and roles. If your business needs to create new contracts, the following tips can help you ensure all involved parties retain proper responsibility.
1. Put all terms in writing
After you come to a spoken agreement with another party, do not assume that this verbal agreement is enough. Always put your business contracts in writing to protect your operation’s interests.
2. Err on the side of simplicity
Your business contracts do not need to be overly complicated or detailed. At the same time, they should include enough detail to ensure that all involved parties understand their responsibilities and follow through on the specified terms.
3. Determine how to resolve disputes
There may come a day when you and another party do not agree on the terms of a contract you created. Instead of immediately terminating the contract, include stipulations for how to resolve issues, whether this is through mediation or another method.
Solid business contracts can protect your business from liability and help you keep your operations running without major issues. Although it takes effort upfront to create effective business contracts, this is usually worth the investment of your time.