Weathering the Storm in Your Business
Disclaimer: This article on Business is intended for the purposes of providing information only and is to be used only for the purposes of guidance. This article is not intended to be relied upon as the giving of legal advice and does not purport to be exhaustive.
There’s no nice way to put it, it is hard to be a business owner right now. Many businesses are struggling to keep their doors open.
While we may be past lockdowns and other restrictions, supply chain issues still loom and there are plenty of other challenges to contend with. So how do you weather the storm? How do you keep your business afloat when everything seems to be working against you?
Let’s discuss three key areas where you can make good choices today that will help your business in the long run.
Negotiating Commercial Leases
Let’s share a story of a woman we’ll call “Jane”. Jane was desperate to find a space for her growing business and signed a commercial lease without discussing it with a lawyer.
Unfortunately, Jane did not realize that “standard terms” of a commercial lease tend to favour the landlord. Problems arose with the space because of the landlord’s actions, and Jane was forced to delay opening her business while these were being addressed. Meanwhile, she still needed to pay rent for a space that she could not use.
You have an opportunity to avoid making the same mistake as Jane. Consult with a lawyer before you sign anything, even if it’s just a simple “standard” lease.
Yes, there is a cost to this. However, having a lawyer help you to understand your lease and negotiate for more rights can help you save much more in the long run.
Having Proper Contracts In Place
Another mistake that businesses make is not having proper contracts in place with their key suppliers, customers, and employees.
This can lead to a lot of problems down the road, such as:
– Unpaid invoices: If you don’t have a contract in place specifying when and how your customer will pay you, you may have a hard time getting paid.
– Unreliable suppliers: If you don’t have a contract in place specifying the terms of your agreement, your supplier can change the terms at any time. This can lead to disruptions in your supply chain and unexpected costs.
– Unstable support: If you don’t have contracts in place with your service providers, they can create delays or disruptions in your business. It can be hard to prove non-performances if no contract exists.
To avoid these problems, ensure that you have proper contracts with all of your key suppliers, customers, and employees. This will protect you in the event of any problem that may arise because of them.
Understanding Construction Liens
Construction liens are a big problem for businesses, especially small businesses. A construction lien is a claim that a contractor or supplier can make on a property if they are not paid for their work.
If you are a contractor or a subcontractor, make sure that you are staying on top of payments. You can register a lien on the property if you are not being paid. However, you can only do so within 60 days of completing the contract.
Weathering the Storm With Beeksma Law
Making good choices today can help your business weather any storm. By taking the time to understand your commercial lease, put proper contracts in place, and stay on top of payments, you can protect your business from common problems.
At Beeksma Law, we know the struggles that entrepreneurs face. We are here to help you protect your business from the common legal problems that can arise. Contact us today to discuss how we can help you.