No matter what business you are in, how old you are, how long you have been doing business or who you are doing it with, a very important part of doing business is a contract. This is really the only thing that is there to make sure your partners do what they say they will do. It is also the only line of defence you have if you don't see eye to eye with your partner, which usually happens in business.
Whether it is with a friend, a family member or a stranger off of the street, you must have a contract to protect both of your interests as well as your business. If you don't have a contract, no matter how successful your business is, without one, you leave yourself open to have it all taken away from you. A contract is especially important as many issues will come up down the line, such as:
1. How much Money is invested by Both Partners.
2. How much of the Company each Partner Owns.
3. When and How is the monetary investment paid back to each partner.
4. Who controls and oversees the day to day operations of a company and who has the final say in this matter.
How much money invested by both partners will play an important role on how much of the company each of you own. That then trickles down to who owns a bigger percentage and usually has the say of day to day operations. This is an important issue to tackle in the agreement as some partners are really investors who want you to run it all. Then there are partners who invest, but what to have control over it as well. This can cause some headaches as every time you go to make a decision they can challenge you on it.
Another importance of a contract is to determine when each partner gets paid back, this also can save you from the other partner demanding funds. This especially important when the company has or isn't making much money. If they do go to sue you over this, which in turn could ruin more then your business, as you probably don't have the funds to pay them back. So a contract with information on how payback of investments will work is a very important article in the contract.
So remember to get a contract done for your business and any ventures or partners you have. You can find many sites online, including ours logo2d.com, where you can purchase contracts online for a very good price. Protect Yourself and Your Business!
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