Are you a new or seasoned entrepreneur trying to navigate all things legal so you can protect your business? First of all, good for you for putting some of your attention to understanding the legal side of your business.
I recently chatted with Hope Mikal as a guest on her Magic Hour Podcast to talk about the importance of using lawyer-drafted contracts to protect your business. In this episode we dove into Privacy Policies, Terms and Conditions, and why you really should have these two contracts in place on your site before you collect a single email address or sell anything.
What Contracts do I need for my Business?
With so many new businesses out there and creative humans becoming entrepreneurs, it’s easy for the legal side to get missed or not taken seriously. However, I’m here to show you that legal doesn’t have to be scary, contracts for a business don’t have to be complicated, and you can implement custom contracts in your business easily and affordably to ensure you, your business, your money, and your reputation are protected.
In this episode, we dive into why it’s so important to use lawyer-drafted custom contracts in your business. Every business is different, which means their services, packages, terms, and contract needs are unique, too. You’ll walk away from this conversation with a stronger understanding of why using the right contracts for a business can help you grow and scale with confidence.
You Should be Using Lawyer-Drafted Contracts
I know we’re living in a time of AI-generated content and generic templates, but when it comes to legal contracts, these types of contracts can be a big problem.
AI is trained on what's available public on the internet; a lot of which is generic, and not enforceable or applicable based on where you live. With generic or AI-generated contracts, you don’t know where they’re getting their information from or if it’s actually legally legit. AI can be a great starting point for a lot of things, but with legal contracts - we're just not there yet.
Setting Clear Boundaries With Contracts
As an entrepreneur or small business owner, setting clear boundaries and expectations in client contracts is a MUST! Not only does it help prevent the dreaded scope creep and the resentment that comes from it (more on that HERE), but it also protects your time, sanity, and overall energy.One of the biggest issues I see are vague service descriptions and unclear payment terms, which can lead to tons of issues like rescheduling, cancellations, and uncertainty on deliverables.
By setting clear boundaries and expectations right in your contracts, you can educate your client about what it’s like to work with you, addressing any of those questions before they become issues. And if they do become issues? You can refer your client back to the contract and let it be the “bad guy.”
Why You Need Privacy Policies and Terms and Conditions
I often get questions about privacy policies, terms and conditions, what they are, and why you need them. Hope and I dive into the difference between them and why a privacy policy is a legal must for entrepreneurs with a website, especially if you plan to capture emails on your website, such as through opt-in forms for lead magnets.
These are key legal elements to have in place when handling personal data and ensuring you are complying with privacy laws. As your business changes and laws change, be sure to update your privacy policies regularly to reflect the current best practices and legal standards.
The Scoop On Email Marketing Legalities
If you’ve been in business for any amount of time, you’ve probably heard that email marketing is where it’s at. Just make sure you’re using email marketing legally, first! That means, obtaining consent for email lists and regularly scrubbing them to remove disengaged subscribers.
Consent is always changing, so be sure you are consistently giving subscribers an obvious way to actively click a box to give consent. On top of that, be transparent about your email marketing practices and intentions so subscribers know what to expect and aren’t surprised with the amount of emails they receive or the type of content you share in the inbox. That’s the ethical way to market via email!
Legal tips for Small Business Owners
Hope and I round out our conversation with some go-to legal advice for small business owners. We dive into the importance of confidence in collaborations and partnerships and making sure you’re going into a collaboration with the goal of seeking out the skills of the other person and getting their unique expertise. If you are thinking about collaborating with someone, I definitely recommend using a Collaboration Agreement before getting started.
I also share tips on addressing potential conflicts and ensuring clear agreements in business partnerships. If you are a business owner dealing with a legal issue, I encourage you to seek legal advice and be proactive about the situation before it escalates into something worse.
This is such a fun episode with so many other golden nuggets about deep work vs. creative work, social media presence, passive income (my Roman Empire), time management, work-life balance, and more!
All in all, using custom legal contracts to protect your business is a big deal, but it doesn’t have to feel like a big deal. Don’t overthink the legal aspects of your business or try to do it all on your own. Instead, seek help when needed, do your research, educate yourself, and implement lawyer-drafted and approved custom contracts in your business so you can feel confident growing and scaling a business that is built on a solid legal foundation.
Be sure to give this episode of the Magic Hour Podcast a listen right HERE and share your “aha” moments in the comments below!!
Looking for more custom contracts and legal templates for your business? Check out all my contracts and bundles (or send me a message!) to find exactly what you need to legally protect your business.
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