The Gray Areas in Business Cause Us the Most Grief
There are generally there more gray areas in business than we would like to admit.
I go to great lengths to avoid the grayness in my business. By this, I mean addressing any of the gray areas that could come back to haunt me at some stage. And there are many. Of course, putting things in writing is a great start, but there is, of course, more.
The day of the handshake agreement has, sadly, come to an end. If you find that a lot of your business agreements are only verbal and there is nothing in writing, you may need to review the way that you do business.
Develop systems to protect your business
I have worked very hard at developing systems that protect my business and the companies that we deal with. If it’s in writing and both parties have a copy, there really is no room for argument at a later date. My strategy is to plan for the divorce, not the honeymoon. To some people this might sound a little negative, I don’t mean it to, it’s really about being prepared and protecting yourself. I’ve seen so many businesses (and lives) destroyed because people didn’t want to have awkward up front conversations.
Make sure you have it in writing
All agreements with suppliers, staff, customers, lawyers, and so on, need to be confirmed in writing. Another excellent habit to get into is to write summaries of meetings and discussions in your diary. If there is a dispute somewhere down the line, your diary can be submitted as evidence. I had to give evidence in a legal matter several years ago, and I had to present my diary outlining meetings on specific dates, what was discussed and any follow-up.
The main point here is to encourage you to write down any information that could be important at a later date. File it where you’ll know where to find it if you need it. Save your old diaries; you never know when you might need to use the information they contain. I have diaries going back 12 years, and I use my diary to record anything that could later be disputed (and I’ve actually used these old notebooks in court cases).
I know lots of people reading this article completely understand the concept of making sure they have everything in writing. Moreover, I guarantee they have “things” in their business that need to be dealt with. And they need to be dealt with today. If they don’t address these “things,” these gray issues will come back and haunt them.
Address any sticky points
My philosophy is to try and address any sticky points in your business. These are the areas that we know are not quite right. The ones that have the potential to come back and haunt us and we know they will, but we still avoid dealing with them for a host of reasons (they are too complex to manage, no time, they are a low priority, etc.).
Yes, have as much in writing as we can. Also, go one step further and work your way through the sticky bits or the grayness in your business. If you address them now, odds on you can avoid them becoming major issues somewhere down the line.
From my experience, gray areas in business have a habit of ending up as red print on our profit and loss statements.
Deal with them today, sleep better, reduce risk, and have nothing that can come back to haunt you, no matter how hard they may be to deal with.
Originally posted on inc.com
“The opinions expressed by Smallville Contributors are their own, not those of www.smallville.com.au"
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