Last week I talked about why it’s essential to document the systems for your business.
This week I want to discuss another necessity for your business — contracts.
Contracts are not very glamorous and may seem a little intimidating to some people but having a formal written agreement for certain business transactions will do three things: protect you and your business; provide a system of how things should run; and act as a document that’s enforceable in a court of law.
In a nutshell, contracts ensure that both parties are on the same page in a working relationship or partnership.
A written agreement will protect you as well as the signee should any disagreements or misunderstandings occur.
This is especially useful if you chose to work with a friend or family member. Having a written agreement in place lays all the facts out on the table for both parties to adhere to.
Documenting the system
Entering into a written contract also serves a secondary purpose for your business — a documented system for how the partnership will flow.
Contracts often include details on what services will be provided, project timelines, how and when payments are to be handled and other similar items.
Outlining this valuable information in a contract automatically provides a documented system that you and the collaborating person or business can follow.
Written contracts are more effective than verbal agreements if you get taken to court, which is why I use Adobe EchoSign as my contract software.
Electronic signatures collected with EchoSign are legally binding and enforceable in countries around the world.
Legality aside, EchoSign also has a smooth process for sending out documents to be signed. The software has forms like W-9 and W-4 available online to give your contractors, too.
One of my favorite features of Adobe EchoSign is that it links to Google Drive! If you use Google Drive/Google Apps for your business like I do, you will love this feature because EchoSign can pull documents easily to send out for signatures.
Have you used EchoSign? Do you create written contracts for important business transactions? I would love to hear from you below!
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