Essential Legal Advice for Home-Based Businesses
With the development of technology, it is now possible to have a home office that is just as functional as a traditional office.
There are several benefits to working from home, including lower overhead costs, greater flexibility, and less stress. In addition, a home office can be a great way to get some work done while caring for children or pets.
If you are a business owner who operates out of your home, you need contracts too!
Need For Contracts
- Working from home doesn’t mean you don’t need contracts.
- On the contrary, you may need them even more because of the lack of formal structure.
- A contract can help protect both the business and the client.
- A contract also helps to establish clear expectations and guidelines for the work to be done.
Need For Systems
- A well-run business is systematic.
- The formal agreements will help you systematise your business.
- However, many home-based business owners need help to develop dependable systems for running their businesses. They may think they can wing it because they are away from an office. But that’s not how a business should be run.
- A well-run business has systems in place for every aspect of its operation. This includes marketing and sales, customer service, and financial management.
- With these systems in place, you can depend on your business to run smoothly, no matter the challenges.
Need For Formal Agreements
- This begins with formal agreements with your employees, customers, and other key stakeholders.
- By putting these agreements in writing, you are setting the stage for a more successful business.
- The formal agreements help avoid costly lawsuits.
- The correct contracts can help you collect what you’re owed.
- So, what are these legal agreements?
Must Have Agreements For Home Based Business
There are a variety of different contracts that you may need for your home-based business.
However, the MUST-HAVE agreements for home-based businesses are as follows:-
Service Contracts
Service Contracts ensure that the service provider and recipient understand what is expected of each party. This can help to avoid misunderstandings and disputes.
Key details to be included in Services Contracts are:
- the services to be provided,
- the price, the payment schedule,
- the cancellation policy,
- the dispute resolution process.
Sales Contracts
Sales Contracts set expectations for both the buyer and the seller, and document the purchase or sale of goods or services.
Key details to be included in a Sales Contract are:
- The names and addresses of the parties to the contract.
- The date of the contract.
- A statement of the parties’ intent to enter into a contract.
- The subject matter of the contract.
- The price and terms of payment.
- The delivery date and method of delivery.
Employment Agreement
- No business succeeds without help from loyal and dedicated employees.
- An Employment Agreement aims to set out the terms and conditions of an employee’s relationship with their employer.
- This includes an outline of the compensation that the employee will receive, as well as any benefits that they are entitled to.
- In addition, the employment agreement can provide a non-competition clause that prevents the threat of direct competition by a departing employee.
- Having an employment agreement in place is essential, as it can help clarify the expectations and roles of both the employee and the employer.
Partnership Agreement
- A Partnership Agreement is a MUST-HAVE document if you run your business with your partners.
- The most common dispute between partners is when a partner wants to “exit” the company.
- The Partnership Agreement establishes the rules and procedures for partners to exit the business.
- By having a Partnership Agreement in place, both partners and the business can operate with a clear understanding of the rules governing such exit.
- This can help to avoid disputes and disagreements between shareholders.
Still, it’s essential to realise that much work goes into running a successful business from home.
Having a home-based business is a lot like having any other business. It needs to be systematic to be successful.
The formal agreements with customers and suppliers can help you systematise your business and make it more successful.
With the proper planning and execution, your home-based business can be a great success.
Need assistance on how to draft contracts for your Home-Based Business? Skip the hassle of waiting to make an appointment with a lawyer. We offer video consultation via Lawyer Anywhere so that you can get the help you need. Contact us today to get started.