Everyone has, at some point in their life, heard the phrase “don’t put all your eggs in one basket.” However, as the owner, director or partner in a business you, more often than not, do have all your eggs in one basket: your business. I’m sure many business owners will agree that in today’s world one business “basket” provides enough stress to turn one into a so-called “basket case”.
Let us quickly add, before everyone goes running off to find more baskets, if you focus on the one basket you can have just that
basket. As Elon Musk accurately and simply said:
It’s OK to have your eggs in one basket as long as you control what happens to that basket.
With that quote in mind we have compiled some business tips to help you control your basket.
The “what to do’s:”
Have all agreements in writing.
Which agreements? All of them!!
From shareholders agreement & partnership agreements to your service level agreements. Verbal agreements go to the grave with the creator and out the window at signs of trouble.
Have a Business Succession/ Continuity Plan.
This plan dictates what happens to the business should a partner or director retire, resign, pass away, or suffer incapacity to hold office due to illness or disability.
Keep your Will up-to-date.
Trust us when we say, you don’t want to leave this realm without an up-to-date will or no will at all.
Register your intellectual property.
Trade Marks, Patents, etc. are all valuable assets to your business, and there’s no such thing as too many assets.
Protect your family’s assets from your business.
Should your basket fall, you don’t want your family’s assets to be liable for it.
The “what to never do’s:”
Don’t sign any document without reading and understanding it.
Our Latin phrase for the day is Caveat Scriptor which means “let the signatory beware”. By signing a contract you bind yourself to the content of the contract.
Never make guarantees to customers or creditors without first getting legal advice.
Don’t be afraid of your Attorney.
We can read your agreements and make sure you’re not getting trapped. Rumours have it that we can even draft agreements that can hold up in court. Also we can give you legal advice, which is a very profitable kind of advice.
SOURCES:
Eales & MacKenzie; Business Tips, Accessed At: http://www.emlawyers.com.au/legal-tips/business-tips/ (Accessed On: 17/09/2015)
Hutchison D, et al; The Law of Contract in South Africa Forth Impression (2011) p 447
