Category: Business Planning

I can usually tell when a business is about to hit a wall.

It’s not always obvious. There’s no lawsuit, no emergency call from an investor. Instead, it’s a message that carries a quiet unease: “We’ve been doing the same thing for two years, and now it feels… fragile.”

That moment often follows a growth accelerator or strategic program, when a business realizes how many foundational pieces were never put in place. Other times, it comes when a client only partially pays and the business discovers its “contract” doesn’t offer much protection at all.

That fragility is a signal. It’s the space between operating a business that’s getting by and building the legal infrastructure needed to scale with confidence.

Let’s talk about what scaling really means.

Everyone throws this word around. “We’re scaling!” usually just means “we’re growing.” But growth and scaling aren’t the same thing. Growth is your business revenue going up. Scaling is your revenue going up faster than your cost and that only happens when you’ve built systems that work without you being in every room, on every call, at every work site.

• From a legal lens, I know a business is scaling when:
• The same legal question gets asked three times in a month
• Founder equity or IP ownership suddenly matters because someone else wants in, or a deal with a more established company forces hard questions about how much of your IP you’re giving up (or licensing) for the fee on the table
• Contracts stop being one-offs and start following a pattern
• “We’ll figure it out later” becomes “we can’t move forward until we figure this out”

Why smart founders ignore legal (until they can’t)

Let me be clear: if you’ve been operating on duct tape, positive thinking, and hope, you’re not reckless. You’re often just rational and managing your business resources. Here’s why most founders delay:

1. Capital preservation. Legal feels expensive when you’re watching runway. Paying a lawyer $3K to secure your intellectual property doesn’t seem as urgent as paying rent or hiring your first employee.
2. Survivorship bias. You see businesses blow past you without obvious legal investment. What you don’t see is the equity mess they’re unwinding in year five, or the deals they can’t close because their IP ownership is unclear. (Survivorship bias means you’re only seeing the winners who made it without legal and operational structure and not the businesses that hit walls, lost deals, or imploded over preventable issues.¹ )
3. Complexity paralysis. There are seventeen things you could be doing legally. So, you do none of them, because you don’t know where to start.
4. The “clean it up later” myth. You tell yourself you’ll handle it when you raise money, or hit $1M, or hire a COO. But “later” always costs more. Always.

The shift: legal as infrastructure, not cost center

Here’s the mindset change that has to happen:

Stop asking, “How little can we spend on legal?”

Start asking, “What legal infrastructure enables our next stage?”

When you treat legal as infrastructure, you’re not just avoiding risk, you’re removing the friction that slows you, and your business. down. Clean IP ownership means you can take investment without renegotiating who owns what. Solid contract templates mean your team can close deals without waiting for you to review every line. Clear founder agreements mean you’re not having emotional conversations about equity when you should be focused on growth.

The ROI isn’t always obvious up front, but it shows up in how fast you can move, how much risk you avoid, and how much your business is worth when it matters. The businesses that scale sustainably get this early.

Growth without legal alignment compounds risk

Here’s what I see happen when businesses scale without tightening up their legal foundation:

• IP ownership gaps. Who actually owns the thing you’re selling? If the answer involves a contractor from 2022 who didn’t sign an assignment agreement, you’ve got a problem.
• Founder misalignment. Equity splits that made sense at formation don’t hold up when one founder is full-time and the other isn’t. These conversations don’t get easier with time.
• Contract inconsistencies or none at all. Your first 10 clients have contracts that say different things. When you hit client 50, that’s not quaint, it’s a liability. Or, you’ve been getting by having your clients simply sign a proposal which often doesn’t include key contract terms.
• Regulatory tripwires. At certain revenue thresholds, new rules apply. If you don’t know what they are, you can’t comply with them (For e.g., Hire your 50th employee and suddenly you’re subject to FMLA (Family Medical Leave Act) and ACA (Affordable Care Act) employer mandates you weren’t before.²

The cost (time and money) of “cleaning it up” is always higher than building it right. Always.

A few questions to ask yourself

If you’re wondering whether you’re at this inflection point, here’s your gut check:

1. Do you have processes you’d need to defend legally if challenged?
2. Are there parts of your business you avoid thinking about because the legal is unclear?
3. Could you answer basic questions about who owns what in your business without hesitating?
4. If an investor asked for your cap table, operating agreement, and IP assignments tomorrow, would you be ready?

If you hesitated on any of those, you’re likely past the point where “winging it” works.

What this actually looks like

Making this shift doesn’t necessarily mean hiring a general counsel or spending six figures on legal. For most growth-stage businesses, it means:

• Getting clear on IP ownership (who created what, who owns it, and can you prove it)
• Tightening up your template agreements so that closing a deal is efficient or your team can move without you
• Documenting founder equity and roles in a way that holds up under pressure
• Running a legal audit to identify the gaps between where you are and where you’re going

It’s less about “doing all the legal things” and more about doing the right legal things for the stage you’re in.

Final thought

If you’re feeling that fragility I mentioned earlier, that sense that your business is outgrowing its structure (or lack of structure), that’s not a sign you’re failing. It’s a sign you’re succeeding. The businesses that scale sustainably are the ones that recognize that moment and do something about it. The scrappy startup phase is over. The question is whether your legal foundation is ready for what comes next.

If you’re asking yourself that question, let’s talk. I help growth-stage businesses identify where they are, what gaps exist, and what to prioritize. You can book time with me HERE, or just send me a message.

---

¹For an easy read on survivorship bias: “Why do we misjudge groups by only looking at specific group members?” by the Decision Lab
²https://www.law.cornell.edu/cfr/text/29/825.105

 

Happy New Year, fellow dreamers and doers!

I hope your 2024 is off to a fantastic start. The start of a new year symbolizes new beginnings and opportunities for growth personally and professionally. It’s a time when we are motivated to take the leap.

If 2024 is the year you launch that business (you’ve done all the research, registered for all of the small business webinars, saved your coins, etc) or, if you know this year is the year to finally shore up your business’ foundation in preparation for your next level, you’re in the right place.

In this blog, we’ll explore your options for establishing a new business and touch upon the new law to impact small businesses.

First Things First: Choosing the Right Entity for Your Business Model

One of the foundational decisions you’ll make is selecting the appropriate business structure. It’s likely you are aware of the LLC, or Limited Liability Company, business structure because it’s often plugged as the right entity from various online experts, and it is a great option.

However, each structure has its own implications for liability, taxation, and management so it is important to take the time to understand the nuances of each and choose the one that aligns with your business goals and vision.

If you are just starting, meaning you are self-funding and it’s just you (or another person or two), your brain, your laptop and prayers, it is fine to start out as a sole proprietorship until you have evidence that you have a viable business idea and plan. If it’s you and another person, make sure to have a partnership agreement in place to create the foundation for the partnership.

Back to the LLC, it’s the most popular option for today’s entrepreneurs for a reason. It shields your personal assets from business bumps and bruises and is flexible. But if you have big dreams to create the next big thing, you require big money, and your idea comes with a fair amount of risk, a Corporation may offer the structure, stability, and potential tax benefits you want. However, Corporations are less flexible and come with more paperwork.

Finally, if part of your mission is to support a specific cause that benefits a group of people, then a non-profit corporation may be the way to go. Indeed, for-profit corporations occasionally align themselves with a non-profit or charitable arm if part of their mission is to support a specific cause.

I hope it’s clear that your business structure selection is not one-size fits all – it must align with your business goals.

Follow the Rules

This year, a new law called the Corporate Transparency Act is shaking things up, especially for business entities formed after January 1st, 2024.

I’m sure you’ve seen the TikToks or Instagram and Facebook posts alarming the public about the “additional fees” to start a business in 2024. I even saw one video on IG that “An LLC Will Cost You $500/Day in 2024”.  That description is misleading.

The quick high-level summary of the Corporate Transparency Act is that it was enacted to combat illicit activity including tax fraud, money laundering, and financing for terrorism by capturing more ownership information for specific U.S. businesses operating in or accessing the country’s market.

What does that mean for you?  If you started your business after January 1, 2024, you will need to submit a Beneficial Ownership Information (BOI) Report to the U.S. Department of Treasury’s Financial Crimes Enforcement Network (FinCEN), providing details (details you’ve likely shared to open your business bank account, obtain an EIN, apply for business certifications) identifying the individuals who are associated with the company within 90 days of formation.

If you have started your business before January 1, 2024, you have until January 1, 2025 to comply. Failure to comply with the new regulation, or willfully violating the BOI reporting requirements may result in penalties of up to $500 for each day the violation continues. There is no fee for submitting the report.

If you need help with any of this, especially if there are several owner/operators of the business, you have a holding company, or any other unique circumstance, your friendly neighborhood lawyer (that’s me!) can guide you through the process.

Schedule a time to chat here.

Don’t forget to share this blog with your business friends. Cheers to 2024!

I couldn’t be more excited for 2024. As the year draws to a close, entrepreneurs find themselves juggling a multitude of tasks, from finalizing annual reports and wrapping up client deliverables to making time for holiday luncheons, parties, and galas.

Amidst this whirlwind of activity, it’s important not to overlook the essential legal and back-office matters that can significantly impact your business’s success and longevity. By taking the time to review and assess these legal matters before the year ends, you can ensure that your business is well-positioned for a smooth and prosperous start to the new year.

Alright, business owners! Let’s jump into the key checkpoints for your end-of-year legal and operations review:

1. Review and Update Contracts

Contracts are the backbone of every business deal and many business relationships, but here’s the deal: business evolves.

Your business in year 1 is different from your business in year 3 and different from year 5. It’s essential to review and update existing contracts to ensure they continue to align with your current operations and objectives.

Pay close attention to key terms such as scope of work, payment schedules, intellectual property rights, and termination clauses. If you have any concerns or uncertainties regarding your contracts, consult with an experienced business attorney for guidance.

2. Update Company Policies

Company policies for your team and customers serve as the foundation for a harmonious work environment and positive interactions with your clients and customers.

Regularly review and update your company policies to reflect any changes in employment laws, industry standards, or your business practices. Make sure your policies are clearly communicated to your employees and that they are consistently enforced.

Make sure the policies on your website and point-of-sale are accurate. This will help you maintain a positive and productive work environment and transparency while minimizing legal risks.

3. Conduct Tax Compliance Review

Tax compliance is a critical aspect of business management, and failing to meet your tax obligations can lead to severe penalties and financial repercussions. Take a moment to assemble, scan, and upload relevant documents so that when 2024 comes you are ready.

If you work with a CPA, follow their instructions now for an easier tax season. Consider scheduling a consultation to learn how to maximize tax deductions and minimize your overall tax liability.

4. Protect Intellectual Property

Intellectual property (IP) is a valuable asset that deserves careful protection. Take steps to secure your IP rights, such as trademarks, copyrights, and patents.

Take time to inventory new IP created this year and get on the calendar to discuss protection. By protecting your IP, you can prevent unauthorized use, safeguard your competitive advantage, and make plans to monetize.

5. Data Security and Privacy

Data is the new currency, but it’s also a liability if not secured. Assess your cybersecurity measures and consider meeting with a cyber security consultant to ensure you are taking the appropriate steps to protect client data. Also, a solid privacy policy can earn you trust and credibility.

6. Review Insurance Coverage

Insurance: your shield against risks and the money-saver for your business. Don’t skip this crucial step in protecting what you’ve built. Review your existing insurance policies to ensure they provide adequate coverage for your current business needs.

Consider any gaps in your property damage, liability, cyber-attacks, and employee health insurance coverage. Consult with an insurance broker to assess your risk profile and optimize your insurance coverage.

7. Organize Business Records

Review your business records. Take a moment to sort, file, and delete the files on your desktop (anyone else’s pretty picture on their desktop completely covered with random downloads). That pile on your desk, file it away or shred. Organize your records systematically and implement a secure record-keeping system.

As you gear up to fine-tune your business for the upcoming year, remember that support is just a step away. Whether you need legal advice, guidance on compliance, or connections to reliable operational partners, we’re here to assist you.

Reach out today for expert legal assistance or valuable referrals to trusted professionals in various operational aspects.

Small business success is our priority, and we’re committed to helping your business thrive. Contact us now to ensure a solid foundation for the prosperous year ahead!

If you are new to business, this may be the first time you’ve heard of the term “chargeback”. Before we define it, just know that they can be a nightmare for small business owners. They not only result in lost revenue but also consume precious time and resources.

While often confused with a refund, a chargeback is different. A chargeback is a return of funds to a customer’s card account after they dispute a card payment on their statement. A refund is a repayment of a sum of money.[1]

Some chargebacks are legitimate. But because of the lost revenue and time (and headache) it takes to address, small business owners would benefit from putting a strategy in place to deal with this potential ordeal.

Keep reading for 7 strategies to implement to prevent chargebacks.

1. Clear and Transparent Policies

Start by establishing clear and transparent refund and return policies. Make sure these policies are easily accessible on your website, invoices, at the point-of-sale, contracts, and in any communication with customers. When customers know what to expect, they are less likely to initiate a chargeback without first seeking a resolution through your established channels.

2. Detailed Product Descriptions

Provide detailed and accurate product descriptions on your website. Include high-quality images and specifications to ensure that customers receive exactly what they expect. Do you provide services? Are you a coach or a consultant? Be careful to provide a clear scope of the work or project for which you are hired in your contract.

If you frequently receive questions about related services, and it’s not included in the package your client requested, it’s a good idea to also include what is not included in the contract. Misunderstandings about product details and what is and is not included in a service are common triggers for chargebacks.

3. Excellent Client Experience/Customer Service

Do not overpromise and under-deliver. You need to make sure that you can deliver the services that you claim you can deliver and on time. Selling products through your website or other selling platforms? Prioritize excellent customer service. Your phone number, email address, contact information, should not be a game of hide and seek. Address customer inquiries and concerns promptly and professionally. By resolving issues before they escalate to chargebacks, you can build trust and loyalty with your customers.

Also, if you offer subscription-based services or products, make it easy for customers to manage their subscriptions. Provide clear cancellation instructions and ensure that billing is transparent. For example, if you know the transaction will appear as a different name than the one you use for branding purposes, alert your clients (at the point of sale, on the invoice or receipt, and in your policies) what name will appear on their credit card statement. Unauthorized subscription charges can lead to chargebacks.

4. Record Keeping

Maintain detailed records of all transactions, including order confirmations, shipping details, and customer communications. If you provide services, use clear and complete contracts. This is not to say that every contract needs to be 20 pages long, but you want to make sure you are not deleting clauses you deem unimportant for brevity purposes. If you have a conversation about the issues with your client, make sure you follow up with an email to summarize the discussion. This documentation can be invaluable in disputing unwarranted chargebacks.

5. Secure Payment Processing

Invest in secure payment processing systems. Ensure that your website is protected with SSL encryption and that your payment gateway is PCI compliant. This helps protect customer payment data, reducing the risk of unauthorized chargebacks due to security breaches.

6. Delivery Confirmation

If you offer physical products, consider using delivery confirmation services such as tracking numbers or signature confirmation. This provides evidence that the product was delivered to the customer’s specified address, making it harder for customers to claim non-receipt.

7. Chargeback Alerts and Prevention Services

Ask your payment processor about chargeback alerts and prevention services. These services can help you detect and prevent fraudulent chargebacks in real-time.

Chargebacks are not an inevitability in business, but since there is a new scam every day, you want to be prepared. As the saying goes, an ounce of prevention is worth a pound of cure. Implement the strategies now, not only for your financial bottom line, but also for the reputation of your small business. If you are not sure what you need, or how to create an effective system to manage these issues, reach out. We can help you!

Hey there, small and mid-sized business owners! As we hit the mid-year mark (give or take), it’s the perfect time to take a step back and assess how far you’ve come. Mid-year reviews are not just about analyzing performance, writing reviews for employees, or setting new goals. It’s also an opportunity to celebrate your achievements and milestones.

In the hustle and bustle of running a small business, it’s easy to skip celebrating your business’ achievements. However, taking the time to reflect and celebrate the progress you’ve made in implementing the strategic plan you wrote at the end of 2022 and acknowledging and appreciating your team’s hard work can work wonders for morale and motivation to keep going.

Identifying and Evaluating Mid-Year Achievements

It’s easy to find yourself in grind mode that you don’t know where to start. Look back at the goals you set at the beginning of the year, and assess your progress.

I typically take my longer strategic plan and break them into quarterly goals and further break that down into milestones and tasks that need to get done. I love to check things off on a weekly basis, so stopping and appreciating what has been accomplished in the prior two quarters is motivating.

Utilizing data also helps in determining the part of your plan that may need some tweaking. If you have a team, invite them to share their valuable insights. What are they seeing in their day-to-day work? What changes have they experienced, if any? Being open to different perspectives can help you avoid blind spots and help build a stronger sense of camaraderie.

More than $$$$

While important, succeeding isn’t limited to financial gains. As a small or mid-sized business, you’ve likely had wins beyond your profit and loss statement.

Perhaps you finally landed a meeting with a decision-maker to hear your proposal for a contract that could be a game-changer. Or maybe you’ve finally received notice that your trademarks have registered. Maybe you finally took action and made the investment to pursue securing your brands. Or perhaps you are finally feeling a sense of relief because you’ve made key hires (for example, an assistant or operations manager) that gave you back time to focus on taking your business to the next level or time to just breathe.

Honor all your milestones because each contributes to your overall progress.

Time to Celebrate

After taking stock, it’s time to do something. Treat yourself. If you are solo and work around the clock, plan a weekday day trip doing something you enjoy but rarely get to do.

If you have a team, consider your company culture and budget. Again, it’s a good idea to get the opinion of key players on your team to know what your team would appreciate. Perhaps a paid-day off, gift cards (at places they shop), etc. The point is to do something beyond a verbal praise, or if solo, checking a box and moving forward. It’s important to be intentional about stopping and smelling the roses.

Also, while celebrating as a team is important, don’t forget to acknowledge individual efforts. Personalized acknowledgments and rewards can go a long way in boosting employee satisfaction and motivation, and there is no reason why the appreciation has to wait until the end of the year. Consider creating a spotlight or recognition program to honor outstanding team members and their contributions.

The Homestretch

Finally, as we celebrate our successes and get the motivation we need to keep going, it’s a good opportunity to check in to make sure you have the right goals for the remainder of the year and a plan to achieve them.

It’s also a perfect time to make sure any outstanding legal/business issues are being addressed or are scheduled to. Business owners should be concerned about its compliance throughout the year and not just at tax time.

Mid-year reviews are an excellent opportunity to reflect on your small or mid-sized business’s progress and set the course for the remainder of the year. By taking the time to celebrate your achievements, you inspire your team, foster a positive work environment, avoid burnout, and set the stage for even greater accomplishments.

We’re celebrating serving more growth-oriented small businesses and our new license to provide additional services to businesses in NJ! If you need support heading into the homestretch, reach out to us HERE.

So, let’s raise a toast to your mid-year wins and continue the journey to success together! Cheers to a prosperous second half of the year! ??

Are my contracts legal?

A few clients have reached out to ask about the National Labor Relations Board’s (NLRB) recent legal opinion on non-compete clauses/agreements and what it means for their existing contracts and moving forward.

We talk a lot about protecting your business and business assets (i.e. intellectual property) here, so it makes sense to briefly explain what all of this means for a small business owner, since using non-competes is just one tool to managing risk for business owners ready-to-hire or outsource because hiring and outsourcing is important for any business owner that wants to grow and scale.

On May 30th, the NLRB’s Office of General Counsel issued a legal opinion regarding non-compete agreements which concluded that overly broad non-compete agreements are unlawful and violate the National Labor Relations Act (NLRA). According to the NLRB, non-compete agreements between employers and employees may interfere with employees’ rights to organize (i.e. collective bargaining) under Section 7 of the National Labor Relations Act (the Act), and the enforcement by employers of non-competes may violate Section 8(a)(1) of the Act.

The full legal opinion is HERE, but the long and short of it is expect increased scrutiny around these agreements and clauses. Currently, there are several states that have banned employee non-compete agreements. Business owners must check that their employment agreements do not include overly broad non-compete clauses.

In other words (and this is a very high-level summary), non-compete clauses/agreements should not be a written in a way that an employee could reasonably interpret that they would be barred from, or limited in, pursuing other employment opportunities. The NLRB’s opinion did note circumstances where non-compete agreements could be lawful. For example, non-compete agreements in true independent-contractor relationships are permitted.

Obviously, hiring employees or contractors can bring significant benefits to small businesses, such as increased productivity, access to specialized skills, the ability to scale, and freeing up the business owner to step into the leader and visionary role. But hiring also comes with risks.

Small business owners must proactively safeguard proprietary information and comply with various labor and employment laws. If you’re unsure whether your agreement is enforceable, or you need help with risk management in general, get in touch with us HERE.

Year over year, the number of consumers purchasing goods or services online has increased. And more and more businesses understand that even if they are not strictly online-based, having an online presence is necessary.

With an online presence, small businesses have new opportunities and face unique challenges. A well-designed and attractive website is important from a branding and marketing perspective.

Likewise, the website should be user-friendly. However, a key aspect of operating online (whether you have a full e-commerce shop or use your website to market your services) is the inclusion of well-written online policies on your website. Online policies protect the interests of the business owner, provide transparency, and foster a positive experience for customers.

Here are just a few ways your business will benefit from properly drafted online policies:

Building Trust and Credibility

Maybe it’s just me, but if the website looks like it hasn’t been updated since 2003, and if I have to hunt for the link to the terms of use, shipping policy, refund policy, etc., that makes me pause. Well-crafted online policies, such as privacy policies and terms of use and clearly-defined shipping, return, and refund policies, help small businesses project a professional image to their customers. Simply put, you look legitimate.

By clearly communicating your commitment to protecting customer data, respecting privacy, and adhering to industry standards, your business can build trust and credibility with your target audience.

Not only will you look professional and legitimate, but you also demonstrate transparency by outlining your policies regarding data collection, storage, and usage. You demonstrate transparency when you clearly define what counts as an acceptable return, outline the procedure to request a refund, and the care taken to ship products to you.

When customers understand how their information will be handled and how and when they can expect to receive what they’ve ordered, they feel more comfortable sharing their information and making the purchase. This results in increased trust and a stronger relationship with your business.

Protecting Customer Data and Privacy

Operating online expands your business beyond your physical location. But, with most business opportunities, you must assess and take steps to reduce potential risks.

Well-written online policies are essential for small businesses to comply with local and international regulations, such as the General Data Protection Regulation (GDPR) or the California Consumer Privacy Act (CCPA). (Read more about the GDPR here).

By clearly defining how customer data is collected, used, and protected, businesses can avoid potential legal issues and costly penalties.

Setting Clear Expectations and Terms of Use

In many ways, online policies are contracts between business owners and users. And just like a contract sets clear expectations between parties, the terms of use or terms of service provide clarity to all visitors to the website regarding their rights and responsibilities when accessing and using a small business’s website or online services.

Setting those expectations helps prevent misuse, copyright infringement, or other unwanted activities that could harm your business. Your policies can also help you limit your liability by establishing guidelines for user behavior and disclaiming certain liabilities.

For example, if you provide financial tips, if you operate in the health and fitness space, or if your website includes advice, instructional videos, testimonials, or data, that demonstrates how other people who followed your advice achieve success. You want to make it clear that you are not guaranteeing results and that the business is not responsible for injuries resulting from taking the advice.

Resolving Disputes and Managing Online Interactions

As mentioned before, your online policies are like a contract between you and your customer or you and visitors to your website. Any good contract will include a dispute resolution clause.

In the same way, your online policies should outline procedures for resolving disputes, whether it’s through mediation, arbitration, or other alternative dispute resolution methods. You want to manage potential conflicts with customers or users in a fair and efficient manner and avoid costly litigation.

Additionally, it’s imperative that you manage user-generated content, such as reviews or comments on your website or social media pages. By setting clear guidelines for acceptable behavior, businesses can maintain a positive online environment and promptly address any inappropriate or harmful content.

As an intentional and determined business owner, you cannot afford to ignore those links typically found in the footer of most websites. These online policies not only protect customer data and privacy but also enhance trust, credibility, and transparency.

By setting clear expectations, mitigating legal risks, and effectively managing online interactions, you can create a secure and reliable online environment. Investing time and effort into developing comprehensive and user-friendly online policies is a worthwhile endeavor that can contribute to the long-term success of your small business in this digital landscape.

If you know you have ignored this long enough, or you’re just not confident in the online policies you currently have, reach out to us for a consultation, and gain a peace of mind knowing your online business is secure.

Ah, spring cleaning! We’ve officially entered the time of year when we are coming out of winter hibernation, changing our wardrobes, sprucing up our homes, and tackling projects in and outside of our homes. For me, spring cleaning goes something like this:

• I talk and talk and talk about the need to spring clean for two weeks.

• I complain about how I am too exhausted/busy to do it while simultaneously wanting to get rid of everything and buy new stuff I don’t need from the container store for another two weeks.

• Then, I eventually get to it by creating a plan to tackle the pantry, closet, etc. in short doable projects.

And isn’t this how we sometimes manage our businesses? We talk about those projects (ad nauseum), we complain, and sometimes grow resentful of all that we have to do, and then we finally get to it. This year, I’m vowing to expedite my personal and business spring cleaning.

Plugging leaks in our business, making improvements, reviewing our fees, reviewing business subscriptions, or launching new services doesn’t have to wait until the end of the year to get ready for the new year. Indeed, now is a great time to spring-clean our businesses.

Evaluate Your Business Operations

Assess your business processes and workflows to identify areas that need improvement. Where can you be more efficient and gain more time for yourself?

Consider checking in with your favorite clients and asking for feedback on their experience in working with your business. Take that information, and work on improving your processes and workflows that will take the client experience to the next level.

Also, if you sell products, review your inventory, and identify what’s expired, outdated, or underperforming products. Dump the expired products, and consider a sales strategy to clear out the underperforming products.

Declutter Your Workspace

If it’s necessary to keep hard copies of your work, take a moment to take care of the filing you put off.

• File any receipts or records that pertain to your more recent tax filing, and file the receipts and records that you will need for next year.

• Archive old client documents and shred documents (e.g., old credit card statements) that include information that you do not want to fall into the wrong hands. Remember, decluttering does not stop at paper.

• Clean your digital workspace, including your computer files, email inbox, and online accounts.

I know I’m not the only one with a crowded desktop of files I “temporarily” filed on my desktop. The decluttering not only leads to a clearer physical space but a clearer mind which will allow you to work more effectively and open up your creativity.

1. Talk to Your People

When I worked in corporate, end-of-year reviews were common, and your salary increase and potential bonus were discussed at the end of the year or at the top of the new year. With a small business, you have the freedom to create a new paradigm.

Do you have a top performer or a member of the team that you know you would miss dearly if they left? Have the conversation with them now to let them know you appreciate them AND demonstrate your appreciation.

Ask them how they are feeling, how you can further support them, and get their feedback about what they think is an opportunity for improvement for the business.

If you have employees that are underperforming, do not go another quarter without providing feedback and determining whether they need additional training or support. In addition, if there are any conferences or training opportunities that would enhance your employees’ skills and knowledge, consider making that investment.

As for contractors, now is a great time to review whether they are delivering what they promised. If they are not, have a meeting to discuss your concerns, and if there is no improvement take a look at your agreement and determine your recourse. We can assist you with reviewing the agreement with your contractor and determining the next best steps.

Once you’ve had your conversations, review and update your employee handbook and policies to ensure they are up-to-date and compliant with relevant laws and regulations.

2. Plan for the Future/Remember Your Plans for the Future

Quarterly, it’s a good idea to gauge your progress on the strategic plan you created for this year. If you are on track, congratulations to you, and you should reward yourself. If not, take a moment to determine how to get back on track. Were you too ambitious for the first quarter? What resources do you need to assist you with accomplishing your goals?

Also important is keeping your long-term business goals in mind. The strategic plan for this year should support your long-term goals. Every new opportunity should be measured against your long-term life and business goals. Some opportunities move you forward, some are distractions.

Lastly, keep in mind that all of this planning should include safeguarding your business so that those plans actually come to fruition.

a. Evaluate your business insurance coverage and update it if necessary.

b. Take a look at your client service agreements. Has a recent client experience revealed any deficiencies?

c. Have you protected your intellectual property, or are you waiting until someone steals it?

d. Do you have a succession plan? Have you thought about what would happen to your business and your personal assets if you were unable to work?

Check out our Business’ Legal Check-Up to make you are on track to realize your goals. And, if this very brief assessment reveals any deficits, we can assist you in taking action now.

I don’t know how it started and what organization grants, organizes, and keeps tracks of all of the National or International Days, but as a small business owner, I love the fact that March 29, 2023 is National Mom and Pop Business Owners Day.

I love a mom and pop. I grew up in a neighborhood in the Bronx that was full of mom and pops instead of a big box stores and chain restaurants. Mom and Pop is the colloquial term that describes a small, independent (and often family-owned) business. These restaurants, grocery stores, bookshops, pharmacies, or other retail operations often operate in a single location, serving customers within their local community.[1] They are the lifeblood of many communities.

Although family-owned and managed, mom and pops have the same concerns and responsibilities that other small businesses that operate more broadly may have. However, due to their size, the fact that the owners and employees are family (or like family) and because their main focus is providing the best service to their local community and making enough money to stay in business, they often overlook the other parts of operating a business including the importance of having legally binding contracts.

But, just like any other small business, mom and pop shops can greatly benefit from contracts. Some of the benefits include:

1. Protection of the Business Interests and Assets

Just like any small business, mom and pops will likely have intellectual property that’s worthy of protection and which gives them a business advantage over their competitors. Therefore, contracts with vendors, contractors, and employees are critical to protecting those assets.

Often, hiring is made when the business is desperate for help for the daily operations. But whether your mom and pop needs to hire a full or part-time employee to work in the business or a contractor for a specific project (e.g. graphic artist to create flyers or a branding expert to create a website), you absolutely should move forward only after an employment agreement, contractor agreement, or non-disclosure agreement is signed.

2. Establish Clear Expectations & Avoid Misunderstandings

Even family should take the time, preferably at the very start of a new venture, to discuss AND write down their expectations around how the business will operate, how business decisions will be made, who’s in charge of what, how finances will be managed, and how disputes should be handled, to name a few.

Assume nothing, create a space for open dialogue, and create an agreement that everyone can live by. The very process of drafting an agreement will likely help you understand if going into business with family or friends is right for you. A partnership agreement (or an operating agreement if an LLC is the best option for your business) is a must and can help to prevent disputes, family breakdown, and costly litigation.

3. Enhanced Credibility and Professionalism

When a business has a written agreement in place, it shows that they are serious about their commitments and that they are willing to put their promises in writing. This can help to build trust with suppliers and confidence with clients which can lead to more business opportunities in the future. Service agreements or Purchase Agreements with your clients would outline the scope of work, delivery schedules, payment terms, how to end the agreement, etc.

You may never have aspirations of growing your mom and pop to the next Whole Foods, Walmart, Soul Cycle, Starbucks, Nike, or Yankee Candle (all of which had humble beginnings). I don’t. But even mom and pops should take care to operate their business so that it grows and thrives, instead of just surviving. That means shoring up business operations and legally protecting the shop.

At MC Law we help small businesses establish clarity, protect their IP, and present a professional image to their clients and suppliers. Feel free to reach out to us for a consultation to get started on protecting your mom and pop.

When did resolutions fall out of fashion?

Every year I see or read an anti-resolution social media post or I see it in the subject line of a newsletter I’m subscribed to. But, aren’t goal-setting (or better yet, goal setting AND goal achieving), new-year vision board events, or, more recently, the “journaling your goals” events the same thing?

I feel like it’s just been repackaged into something more palatable. According to Merriam-Webster, a “resolution” means the act or process of resolving such as:

a: the act of analyzing a complex notion into simpler ones

b: the act of answering: SOLVING

c: the act of determining

That sounds like effective goal-setting to me. Maybe the anti-resolution attitude is because it’s often linked with big (and tough) personal goals like losing weight, quitting smoking or drinking, saving money, etc.

But, I absolutely love resolutions and setting and achieving goals (or getting really close), and I think entrepreneurs should embrace them because setting clear goals and staying focused on achieving them is critical to having a business that is thriving and goes the distance.

Just make sure those resolutions are meaningful and SMART (Specific, Measurable, Attainable (or Achievable), Relevant, Time-Based).

Not sure where to start? Here are a few ideas. This year resolve to:

1. Establish a system to maintain good records.

Write out the steps, share the new procedures with your team, and follow them daily. You need good customer records, financial records, and employee/vendor records to operate successfully. This may mean you need to start using a customer relationship management (CRM) or a program management tool or start making use of the other functions of tools you currently use.

Whatever you do, make sure you keep it simple enough so that everyone on the team will actually do it and keep up with it.

2. Be kind to your Bookkeeper/CPA.

Help them, help you. See #1.

Keeping up with your receipts and records regularly will make for a somewhat easier tax time. And not handing over a mess may mean a lower bill for you, or more importantly, more accurate and timely financial reports that you can use to make decisions in your business.

3. Prioritize the legal and operational tasks you continue to put off.

Often, the one-off tasks, or things that do not directly involve your customers, are put off until you have the time or the resources to address them. Tasks like:

• The operating or partnership agreement you never had drafted and signed by the partners

• Working with contractors without agreements

• Filing taxes

• Protecting your intellectual property before one of your students, clients, or social media followers copies it

• Creating a business plan instead of flying by the seat of your pants

• Outsourcing so that the business can grow without sacrificing your sanity

• Getting proper business insurance

4. Get insured and take care of your estate planning.

You transitioned from corporate, and except for your health/dental/vision insurance, you’ve been putting off all the other benefits your former employer had likely provided.

As a business owner, what happens if you are not able to work for a long period or at all?

Do you have the right insurance to cover the loss of your income? Who in your life can make decisions on your behalf? Make this the year you take care of your estate planning.

Clarifying goals, making improvements, and overall embracing resolutions can help you stay motivated and focused on achieving.

Here at MC Law, we encourage small business owners to be proactive. Check out our Business Planning page to learn how we help you have peace of mind about the operation of your business and our Intellectual Property page for more information on how we help you protect and maximize your business assets.

And stay tuned this year as we share more about getting your house in order – Estate Planning.

Cheers to 2023!!