It can be hard to think far ahead when starting a business or beginning a new business relationship. Yet, doing so will be crucial in the contracts you create.
Here are some of the future areas to think about:
1. What happens if prices change?
Running a successful business depends on having a successful supply chain. Let’s say you agree to sell baked goods to a hotel chain. The prices you set now will not serve you forever. You may need to raise your prices because wheat has gone up or your landlord raises your rent. At the same time, the hotel chain cannot just alter its prices whenever it feels like it. You need to examine this and set out conditions for when and by how much you can alter prices.
2. What happens if you no longer want to work together?
Perhaps you realize that you want to steer the business in a more sustainable direction, and having this particular corporation as a client sends out the wrong message. You need to be able to exit gracefully without incurring a penalty. Clearly, you cannot just walk away, leaving them with no products for tomorrow, either. Set out exit terms and notice periods.
3. What happens if you want to take on more employees?
Maybe it’s just you and your business partner, or perhaps you have a couple of employees forming a close-knit team. If you want to grow, you will need to put more structure and rules in place. You can’t expect everyone to give the business the flexibility and time you can. Having proper employment policies in place from the outset reduces the chance of issues later.
Consider legal guidance to create the future-proof business contracts you need.