As a business consultant, I assist individuals with starting and setting up their own businesses. One common problem that I have discovered, among small business owners is failure to put everything into writing. Many business owners have the old common belief “my word is my bond.” Many small business owners will make business deals with just a handshake without putting the deal in writing. It was time in life when people would keep their word and do what they said they would do. But, in the 21st Century, that is no longer the case because many business deals go wrong because of misunderstandings and lack of communication. What a person says may mean one thing to them and may mean another thing to another person. With my clients, I always advise them to ensure that every business deal is in writing to protect their interests and the interests of the other party.
Here are a few reasons why it is important to get all business deals in writing:
- The written contract will spell out the terms of the agreement.
- The contract will ensure that there are no misunderstandings to the terms of the deal.
- The written contract will ensure that all parties involved in the business deal are satisfied.
- The written agreement will help to avoid unnecessary court litigation. The written contract will ensure that the business deal goes smoothly without a hitch.
It is always advisable to have every business deal or business transaction in writing to protect yourself, your business, personal assets, and business assets. Sometimes not having contracts in writing can cause unnecessary stress and wreak havoc on one’s business and personal life. So, my advice to small business owners is ensure to have every business deal, business transaction, and business contract in writing. This will ensure that your business avoids unnecessary court costs, loss of revenue, loss of customers, and loss of valuable time.