4 KEY RULES TO KNOWING YOUR LEGAL RIGHTS
You'd think that most business people have a lawyer on their team, fully understand structuring a business, and making the right decisions that will ultimately reward them.
However, that's not true. Many six-figure entrepreneurs and athletes in business make critical errors by failing to understand and implement four simple rules at the origin of creating any business or business relationship.
Those four rules are the following:
1. Understand the Professional and Their Profession.
Often, we make deal with other professionals without understanding whether they are the right fit for our business and mission. Often, folks tend to take just "their word for it," without engaging in due diligence to understand the profession of the professional and whether there's a clear alignment.
2. Relationships with other professionals or Player Associations (PAs).
If you're an athlete, does the professional have relationships with PAs? If you're a business owner (with no athletic background), does the professional have relationships with other professionals that you've dealt with?
You want to think about this because this is a way to determine whether there may be a conflict of interest, whether the professional has a great track record and is a credible source for you, and whether other professionals that you know can vouch for them.
3. If hired, what would their role be?
If you hired the professional or individual as a business partner, what would be their role? Trust me, I've been down this road as well before. Creating plans with other professionals without a clear idea of how our relationship will work. This could spell disaster. Thankfully, the mistake I made years ago didn't turn out that way and I was able to quickly get things under control.
Don't make the mistake I made. Create a clear understanding of what the roles of the professional will be. This will help you to understanding clearly what obligations that professional has to you and what your obligations are to the professional. Failure to do so, can cost you a lot of money and possibly, your business.
4. READ THE AGREEMENT.
Whether you've created the agreement or the professional drafted the agreement for your professional relationship, READ IT.
You should always read your agreement multiple times and take notes regarding the issues that you want to address in the agreement. You should insure that the terminology listed in the agreement speaks directly to what your intention is and is void of any confusion.
This is definitely where it's worth spending a few hundred bucks to have an attorney review it. But, even if you don't... read the darn contract. Make sure the most important terms are covered.
If you've made these mistakes or simply want a robust look into your business plans and structure, make sure to reach out. At SLD, we're always creating innovative ways to help you create a business that will take care of you. Not the other way around.
This article is a service of Sivonnia DeBarros, founder and CEO of SL DeBarros Law Firm, LLC. SLD offers a wide array of business legal services and can help you make the wisest business choices throughout life and in the event of your death. SLD also offers a Business Protection Start-Up Session or a Business Audit for an ongoing business, which includes a review of all the legal, financial, and tax systems you need for your business. Call SLD today to schedule.