Without contracts, anything is possible. People change, things happen, and anything that can go wrong just might. With contracts, anything is STILL possible, but the expected limitations are clear and the consequences are governed by law. Trust is still one of the most important factors in any business relationship, but without a contract, it’s nothing more than a feeling.
Confidentiality Agreement: Because nobody likes keeping secrets.
Every secret we have isolates a small part of us from the outside world. That’s why keeping a secret is such a lonely experience, and it’s also why a secret is so important to a business. When you communicate your trade secrets to a new partner — written, verbal, or otherwise — you’re sharing more than a valuable idea; you’re also sharing a burden of responsibility. The Confidentiality Agreement is a business contract that provides legal recourse in the event that a partner’s personal need for expression surpasses their respect for your secret information.
Non Compete Agreement: Because everyone’s an entrepreneur.
Remember the entrepreneurial urge that led you to start a business in the first place? Any one of your employees might have those same feelings now — but that’s not necessarily a bad thing. With a well-structured Non Compete Agreement contract, your employees will have extra incentive to grow their segment within your company, instead of becoming your cross-town rival. When properly written, a non compete agreement inhibits an employee from competing in the same industry within a reasonable time frame and geographic area of their former employer.
Non Solicitation Agreement: Because they’re YOUR clients.
Who owns the relationships with your clients? Whether you’ve got a sales staff, a new business director, or neither, you’ll likely gain client relationships through your employees at some point. The key is to make sure they don’t leave through those same doors. A Non Solicitation Agreement is a business contract that restricts your current and former employees from courting and signing your clients outside of your company — consider it your valve for client retention.
Non Disparagement Agreement: Because break-ups can be brutal.
Emotions run wild when a relationship goes sour — and a business relationship is no exception. A terminated employee, or even a dissatisfied one, can ruin your good name with their ill will. A Non Disparagement Agreement is a business contract that will make them think twice — it discourages current and former employees from making negative comments about your business in the public forum.
Employment Agreement: Because uniforms aren’t so uniform anymore.
With the variance in policies from one company to the next now wider than ever, how will your employees know what your company expects? An Employment Agreement is a business contract that can cover pay, vacation time, terms of employment and many of the agreements mentioned above. With all of the rules in writing and signed in one document, both employer and employee know what to expect before the rookie’s first day on the job.
A business owner should never feel bad about requiring a contract for a business relationship. It’s nothing personal — in fact, it’s pure business. With the right contracts in place to formalize your agreements, you can make sure that no matter how personal feelings might change, the terms of your business relationships never will.
Tags: business contracts, Entrepreneurship, small business law
