When you run a business, something you should get familiar with is using contracts. Contracts come in many forms, so it’s smart to learn about the different styles and how they may help your company protect itself against liability and against changes that impact your business.
There are several kinds of contracts that you should work with regularly. They include:
- Contracts for services
- Independent contractor contracts
- Employment contracts
- Vendor contracts
Each of these has significant benefits that may help your business in the short and long term.
Contracts for services
To start with, you should always have contracts for services you render. Have contracts that detail the scope of your services as well as information such as how the client can reach you, the name of the service you’ll provide, a list of the fee structure and other details to help you make it clear what the client should expect.
Employment contracts help you hire in someone while giving them all the important details about their job, salary, paid time off, holidays and other aspects of the agreement. Include a policy manual/employment manual with this contract, so that the individual knows about your company dress code, regulations and disciplinary procedures.
Vendor contracts are essential, so that you can verify what you will receive from vendors and when those items will arrive. You want to include clauses that will help you get compensated if items are not available or if the vendor doesn’t hold up their end of the arrangements.
Independent contractor contracts
Independent contractor contracts are important if you plan to hire someone to work independently. For example, if you want to hire someone to manage your social media but don’t want them to become an employee, you can hire them independently for a shorter period of time. In the contract, state the score of the project, your predicted outcomes and your expectations as a client.
These are just four of many contracts that can help your business. It’s smart to look into these and any others that may help protect your business from lawsuits, liability and other issues.