#203 - The Hidden Force Behind Business Growth
When I start working with a new client, a question I frequently ask is: "What do you want to achieve in this next season of your business?" Nearly every time, the responses revolve around gaining more clients, revenue or growth. Yet, the tool that most powerfully supports this growth is often misunderstood—the legal documents.
I get it - legals aren’t the most exciting part of the business growth journey. But they’re actually a powerful undercurrent in your business that ensure not just protection, but propel you towards sustainable success. And to me, that is vital.
Guarding Against Legal Pitfalls
Legal documents that are tailored specifically to your business can have a significant impact in meeting - and exceeding - client expectations. From here, we have the potential to see repeat clients and glowing recommendations. But without them, you risk coming up against unfortunate pitfalls, like agreements that tie you to unprofitable work or misunderstandings over intellectual property rights. These can all too easily distract you from chasing new opportunities and keep you vulnerable to legal headaches.
Creating Seamless Client Journey
On the other hand, when your legal pathways are properly aligned with how you do business, they support a seamless client journey—from the first inquiry, through contract signing, to service delivery and invoicing. Properly drafted agreements ensure that even when disagreements arise, the resolution is smooth, and your clients are hopefully not only happy, but likely to return.
Harnessing the Hidden Force
So how do we harness this hidden force behind business growth? Start with alignment: build a foundation of tailored documents that reflect your brand and values. Engage with a business lawyer who partners with you, guiding you through the nuances and ensuring every document is not just legally sound but also a natural extension of your business ethos.
If you haven’t looked at properly tailoring your legal documents for your business, I encourage you to reconsider the vital role they play in growing a sustainable business. If recognised as the powerful tools they are, they will consistently support your vision for growth.
If you need help getting your legals done right, feel free to reach out. Let’s get you started on your journey to accelerated growth in business!
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[00:00:00]
Tracey: Welcome back everyone to another episode of the podcast. Thank you as always for joining me. I hope you're enjoying these fortnightly episodes as much as I'm enjoying preparing them for you, in particular, the questions and answers that I'm including at the end of the episodes.
I've received some wonderful feedback from lovely listeners who are really enjoying those short and sharp Q and A's. Just a reminder, if you do have a question that you'd like me to answer at the end of one of the episodes, please feel free to reach out by email, the website, Instagram DMs, and let me know. Only too happy to answer. Let's dive into today's episode.
[00:01:00] In today's episode, I want to talk to you about what I regard as the really powerful hidden force behind business growth. But first, some context. Why am I talking to you about this today? When I start working with a new client, one of the questions I ask at the very beginning of our journey together is what do you want to achieve in the next season of your business?
Most of the time that answer revolves around more clients, more revenue, or more growth. I'm having the same conversation over and over again recently around the powerful tools that underpin that growth, because growth is going to give you more clients and growth is going to give you more revenue. The powerful tool that underpins that growth is the legal documents, the power of the legal documents, and what I'm finding is these new clients who are reaching out, they do have an appreciation and a respect for the legal documents as a necessary protection piece.
[00:02:00] So yeah, I get it, I need my labels to protect me and they do, you absolutely do need them for that but they serve more than that.Their purpose is far greater than that. They really are that powerful hidden force behind business growth. And so what I've realised, it's not new, I suppose, but I've reflected on this and it's become really clear to me is that the educational piece is missing for so many business owners in the context of just how powerful the legal documents are and just how far their reach extends on the business journey. And that got me thinking some more and I liken it to my recent journey since starting to work with a personal trainer and what I want to talk to you about today and take you on a particular journey today is very similar to the journey my new personal trainer has taken me on. Let me share with you what I mean.
[00:03:00] So recently I took the decision to reach out to a personal trainer, take the plunge, prioritise myself, all in, Tracey. I've got health and wellbeing goals, and I was not on the path to achieving those, and I knew that. I have a mantra in life which is, if you always do what you've always done, you'll always get what you've always got.
It was time I started walking the walk, particularly in relation to my personal and wellbeing goals. I reached out to a personal trainer who I thought was going to be the right fit for me. Don't get me wrong, I've done things in the past. I used to be very fit and active before kids.
I have an understanding. I've worked with trainers before on and off in a little bit, not really all that serious. I've been to the HIIT, you know, high intensity workout classes. I've been to gyms and done sessions. I've done all of that, but it was time to really up level because I've built a business that affords me flexibility, but I wasn't utilising that flexibility for me.
[00:04:00] I utilised the flexibility for the kids, the family, friends, other things, but I wasn't utilising it for me. There was stories there. I felt selfish, all the things. Anyway, it was time to take the plunge, get serious, do this properly. So I went and had a conversation with this particular personal trainer who is fabulous and honestly is changing my life in ways that I had not anticipated.
It is amazing. Prioritising myself and doing this has been a game changer. More on that on another episode, I'm sure. We had a conversation and he said to me in this first conversation, my approach is start from the basics, build the foundations, crawl, walk, run. It's that simple. There's no silver bullet here, Trace, it's discipline and consistency. That's going to get you the results. I thought, you know what? I'm not going to be the person who dives in and interrupts and says, Oh, yes, I know that. Oh, I've heard of that. Yeah, I've done that. No, no, I'm going to be completely respectful. I'm going to trust and lean into this and I'm going to trust him and I'm here.
[00:05:00] I'm going to show up for myself and I'm going to listen. I'm going to do the thing. That has been the aha moment. That has been the magic formula, if you like, where I have found someone that I've connected with, I found someone I trust and I have found someone who communicates all the things I need to know about the move, the form, the right routine, about how to do all the things. I'm leaning in. I'm listening because I trust and I'm doing the things. So we've taken it back to basics. I had bits of knowledge, but now I'm learning some of it was okay, some of it wasn't, but it's irrelevant because this is a new journey that I'm going on with somebody that I've chosen to work with because I trust them and they're communicating with me in a way that I understand.
So it's resonating and it feels good. I feel empowered and my confidence is growing. So when I was reflecting on this recently, I've realised that's exactly the journey I take my clients on.
[00:06:00] So clients that reach out to say, I know I need legal documents in place because, Oh, you know, I've used a template or I've Googled something, I've got something from a friend, bits and pieces, but you know what, Tracey, it's time to step up. It's time to take it seriously. Now's the time I want to do this properly. So I take them back to basics and I take them on a similar journey of empowerment. Aligned clients, that is. Clients who are ready to work with a lawyer like me who wants to take it back to basics so that we can build that legal foundation.
So I explain what the documents are for and I spend time explaining just how powerful these documents can be when done well to support business growth. And that is around things like meeting your legal obligations under the Australian Consumer Law, tick. Protecting you legally so that you're not going to be sued, tick. Protecting you from clients with misaligned expectations around delivery, tick. Protecting you from refund requests, tick. Going further, though, developing documents that are on brand in plain English.
[00:07:00] They're not full of legal jargon, so theya look like the business owner. They sound like the business owner, so we're supporting the client journey, their client journey, because the touch points in the business are so important from when a new client checks out a business owner on Instagram, goes to their website, books in a discovery call, has the call, receives the proposal or the quote or the scope of work. Fantastic. It's all good. The legal documents need to be a continuation of that.
This is powerful. So that, by the time the client finishes reading them, they are busting to work with the business owner. But it doesn't stop there. We are supporting that client journey. Service delivery, outputs, deliverables, stages, phases of work, whatever it might be right down to invoicing, getting paid on time to off boarding so that when the client, my client, the business owner has completed the project with this client, whether it's coaching interior design, consulting, project, whatever it might be by the time it's finished, they have a client whose expectations that have not only met, but they have exceeded.
[00:08:00]This is so powerful because this lends itself to business growth. Positive recommendations, word of mouth referrals, repeat client. That is powerful. And you can't just get that. You have to work for that. We all know that. Everyone listening knows that because a repeat client is priceless.
And we also all know that an unhappy client will tell more people than a happy client and the ripple effect can be scathing on a business. No one, no small business owner can afford to have negative reviews, poor word of mouth. The ripple effect is endless. So we want to stay away from that. And we do that through building these solid legal foundations with the legal documents to support the business growth.
[00:09:00] So there's a really holistic organic growth journey here for the client of the business from reaching out, discovery call, onboarding, working together, paying invoices, completion, off boarding, word of mouth, repeat client, you know what I'm talking about. I'm setting a scene here and it's a beautiful scene.
This all comes about though, from an understanding of just how powerful the business documents can be. The legals in a business can be so powerful when done properly. So for a moment, think about this. So you've got a service based business owner who doesn't have proper contracts. The contracts weren't tailored, so they're kind of just something that's been cobbled together and that's okay. It does the job and there hasn't been any issues to date and that's good. But what the business discovers is they actually don't have an exit strategy or those contracts bind them to unprofitable work. There's no variation.There's no scope creep provisions. There's no No Cause termination. So they're locked into this project and it's become unprofitable.
[00:10:00]It's become so low vibing energetically. There's just no way to graciously part ways with a really difficult client who's not aligned. So they're locked in. So that's low vibing on so many levels. And what it means is that business owner is not free to be going out and focusing on attracting more aligned clients to increase that revenue. So that's one of the so many examples I can give about the hidden cost to misaligned legal documents. Another hidden cost to misaligned legal documents is if we have a creative who hasn't protected their intellectual property adequately in the agreement, and then there's confusion or misaligned expectations between the business owner and the client about who owns the IP, what the client can do with it, whether they have to pay an additional license fee.
[00:11:00] If that's not all adequately addressed and tailored to how that business operates, all of a sudden, that business owner is caught in a low vibing situation, focusing time and energy on dealing with that client, again, rather than bringing in aligned clients to do beautiful work, which ends up with the happy client, exceeded expectations, repeat client, word of mouth. So again, the inadequacy in the legal documents has a cost. Another example I can give you, which comes across my desk more often than you would think, is when a consultancy has more than one founder, whether it's a traditional partnership or a shareholding under a company, and the documentation is either non existent or doesn't deal with what's to happen when one of them wants to take extended leave, or what's to happen when one of them wants to leave.
So what happens is there's friction, there's tension, individuals become disgruntled. That means that people aren't focused on revenue generation. That means that the time and energy that's taken to deal with these issues and the flow on effect of that, means that the value of the business is declining, no one's focusing on new work.
[00:12:00]No one's focusing on productivity and revenue generation. So the tension not only has a negative impact on the growth of the business, but the actual value of the business deteriorates as well. And that's not a win for anybody. So again, that's another example of a common hidden cost that I see when legal documents are not aligned with the parties and with the vision.
So if your vision is long term sustainability, delivering quality services for clients and making an impact, growth, increased revenue, increased clients. What I would really love to say is please don't overlook the significant role properly tailored legals have on getting you there.
[00:13:00] So much like my approach with my personal trainer, which was lean in, respect, show up, and take the advice, build my knowledge foundations, be consistent to achieve the results I want to take me in the direction of my vision, my health and my personal and my wellbeing goals, my vision for those much like that journey, working with a business lawyer to develop your beautifully tailored legals is exactly the same.
Start with the basics, build the foundation of knowledge, build the right legal documents into the framework so that you can consistently show up, rinse and repeat the implementation of those legal documents to attract beautifully aligned clients, deliver amazing services so that you are not only meeting but exceeding the expectations of these clients, leading to repeat clients, positive word of mouth, fabulous reviews that you can then use to grow the business, increase the clients, increase the revenue, increase the impact that you're making, using your legal documents to support the vision you have for your business. That's what I wanted to share with you today.
[00:14:00] The way I feel now, so positive, confident and empowered on my personal and wellbeing journey with my incredible personal trainer is how I want you to feel and how I want my clients to feel when they have a business lawyer, who's aligned, supporting them on their business journey, their growth journey, using their legal documents as powerful tools to support that journey so that they can go closer towards achieving their goals and realising their vision. It's exactly the same. I hope it's resonating with you and it's making sense to you. It makes so much sense to me because this is the feeling that I had, the confidence I have working with somebody. It's a collaboration between my trainer and I.
It's a collaboration between my clients and I. I'm the lawyer who likes to talk to you, to collaborate with you, to take the time to explain. My trainer takes the time to explain. I love it. I understand it. I appreciate it. As do my clients. Take the time to explain. Work together.
[00:15:00]You give input. We converse. How does this feel whilst we're drafting the documents, we're developing the documents. Fantastic. Now it's implementation. We always spend time on implementation. I don't just give you the documents and say, good luck. Let's talk implementation. How are you issuing them? What does your email look like?
What's the next step in onboarding? It's a holistic approach. So what I'm saying to you is if you recognise and I'm hoping that that's the takeaway from this episode, if you recognise that hidden force behind business growth, it really is your legal framework, your legal documents, that legal foundation you have. If you realize that, then there's just no stopping you in terms of taking steps to realise that vision in your business. I wholeheartedly, hand on heart, believe that, which is why I wanted to share this episode with you. So, as I say, I hope it resonates with you. I hope it makes sense to you. I have loved, loved, loved giving thought to preparing this podcast to share this with you.
[00:16:00] If you've loved it as well, I'd be so grateful if you would leave a review on Apple podcast, because that is how we get the podcast into the ears of even more business owners to have even more impact on the lives of business owners on their business journey. So thank you for listening. Now because we're in the new season of the podcast, I'm going to answer two questions that have come up quite a few times over the last few weeks.
One is, Tracey, do legal documents have to be long? Oh, my gosh, the amount of times I've heard this first of all, yes and no. So what I want to say is there is no prizes for having a two page T's and C's or a two page client agreement. Let me be blunt. All you are doing is demonstrating that they're incompetent and unenforceable and that there's really a lack of appreciation of the significance and importance of legal documents.
So if it's two pages, that's not going to do it. No prizes for that. It actually has a negative Reflection on your business. So that's the first thing I want to say. But the second thing is we don't need 42 pages of legal jargon that looks like it's been drafted by a lawyer from the 1960s. A hard no from me to that.
[00:17:00] So the legal documents need to be drafted to cover the services that you're offering, whether they're website terms, client service agreements, employment agreements, or contractor agreements, they don't need unnecessary information. They don't need to be wordy. Concise, clear, plain English, that will then determine the length.
So to give you an idea, I draft often client service agreements for interior designers and we land around the seven pages, roughly, depending, but roughly. Consultancy agreements are always a bit longer than that. Website terms and conditions, it just depends on what's happening on the website. Courses, programs, subscriptions, PDF downloads, purchasing masterclasses.
There's a whole ton of things, but I'm hoping that gives you a bit of an idea. But no, none of us need that traditional, boring lawyer from the 60s drafting a thesis to demonstrate just how smart they are and how much they know. That is not what it's about and that is not what I'm talking about when I'm talking about your really powerful legals.
[00:18:00] The second question is, what's the legal position on refunds for my service based business and this has come up with coaches. So in short, under the Australian consumer law, if you're providing a service, let's just talk one on one coaching and you want to lock somebody into a 12 month contract because that's how you like to run your business, changes to the consumer law in November '23 have meant that you can no longer lock someone into 12 months. And if they reach out to you after 6 months and say, this is not a good fit for me, you can't force them to pay out the contract, because you haven't provided the service. Now there are nuances to this and there are variations to this. So if you front loaded it, you've given a whole heap of IP, if you've got a mastermind with capped numbers and it goes for six months. So there's lots of nuances to the scenario.
[00:19:00] But for now, let's stay focused on one on one coaching, just providing a service, let's say one or two sessions a month, they get to six months and they say to you, Hey, Coach, this is not for me or my circumstances have changed. I need to withdraw. You can't force them to pay out the rest of their contract. It is not a debt. Some lawyers seem to be confused about that. They're not familiar or specialised. They don't specialise in the Australian consumer law, but you can't force someone to pay you for services you haven't provided simply because you've tried to lock them into a 12 month container, for example. Like I said, this is not legal advice. This is general information only, and it's not specific to any specific circumstances. I'm just trying to answer the question so people know, both as the coach and as the client, you need to have a conversation around it, and a properly drafted coaching agreement is going to deal with termination.
And it can't be anymore, "you can't terminate." That will be an unfair contract term. And in fact, if a coach has that in their agreement, it's likely if challenged, the whole agreement will be set aside because courts now have the power to do that under the changes that came in, in November ‘23 around unfair contract terms.
[00:20:00]So I hope that's been helpful. Reach out with questions. If you would like to talk about anything that I've shared today, please reach out. I always love hearing from you, whether it's feedback or whether it's questions. I'm always happy to receive contact from beautiful listeners for the podcast. I'm so grateful for you and I appreciate you being here today. That's it for today. I'll catch you next time.
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