Last week, we talked about the contracts you enter into when purchasing your house. In the business world, you life fills up with contracts very quickly.
If you own your own business, the biggest contract you will enter into will likely involve the space in which you operate. That will be a lease or purchase contract. Those are similar to the contracts we talked about last week but much more complicated. In the residential sense, you commonly have a one year contract that may or may not include utilities. Commercial spaces generally require multi-year contracts, with provisions having to do with payment of taxes and variable rents based on a number of factors, including your revenues.
Outside of your rental contract, you will have employee contracts if you have staff and you may have a contract with your business partner. This is usually called a shareholder agreement or operating agreement.
And, of course, every widget you sell or buy comes with a contract. You may not know it, but when you go to your local office supply store to buy paper clips, you are entering into a contract that comes with warranties and conditions.
Contracts are what make the business world go around. While the “legalese” may look useless and complicated, each word is there for a very specific reason.
Brian Fons, Corporate Creations. Brian.Fons@corpcreations.com or check out my Podcast in iTunes.