#53 The 5 most common mistakes business owners make
My ultimate goal is to educate and empower business owners so they can avoid having to call a lawyer like me when something goes wrong. Over the past two decades, I’ve seen business owners make the same mistakes again and again. Usually, this is due to having a lack of time to ensure the correct systems and processes are set up from the beginning.
We all know how hectic running a business can be. This often results in many entrepreneurs neglecting the legal areas that can ultimately have very real consequences and are sometimes irreversible.
But don’t worry, they are avoidable.
In this episode, I’m sharing the 5 most common mistakes business owners make. I’m very excited to share these with you to save you from the headache of trying to play catch up after a situation arises and you need to call a lawyer.
Tick each of these off to have a little peace of mind and enjoy!
TOPICS DISCUSSED AND WHERE TO FIND THEM:
[1:20]: I want to position business owners so they can avoid having to call someone like me when things go wrong. Listen to my previous episode (52).
[2:09]: I’m sharing with you the five most common mistakes I see business owners making all the time.
[3:03]: #1 Not having business terms and conditions in place. These include items such as your client service agreement, coaching agreement, design agreement etc. I explore these further in episodes 5 and 18 (see links below).
[3:42]: Firstly, business terms and conditions are so important because they ensure the business complies with its obligations under Australian consumer law. Secondly, properly tailored business terms and conditions help manage the expectations of clients and help build long term client relationships. Thirdly, they ensure business protection.
[6:14]: #2 Not having agreements in writing. These include items such as a partnership agreement, shareholder agreement, influencer agreement, contractors, employees, distributors etc.
[7:23]: #3 Not knowing how to deal with changes or amendments to a written agreement or contract. Amendments can be items such as a change to the scope of the services, timing, completion dates, fees, add-ons etc.
[9:35]: #4 Not knowing how to verify the clients or the third party they’re dealing with. Are you dealing with a company, a sole trader, or a partnership? Is the ABN correct? Is the registered address correct? Do the people signing the agreement have the authority to sign the agreement?
[11:33]: #5 Issuing invoices and hoping for the best. There are processes and systems that need to be in place to make getting paid in business easily and hassle-free.
[13:45]: I educate business owners on these issues in my online course ‘Getting Paid Made Easy’.
[15:14]: Summary.
[15:40]: If you’re concerned about anything I’ve discussed, jump over to the website and book a call with me so we can go through everything together.
LINKS:
Previous podcast episodes mentioned:
Get your copy of my Annual Legal Checklist here
